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Qwark said:

Playstation ought to make some games less massive with smaller budgets. Aside from Insomniac and Guerilla all there first party studios on PS5 seem to make one or two games. Which causes Sony to make a lot of third party exclusive hats on which they barely have any profit. Also making game budgets so expensive that a title needs to move at least 5 million (300 million budget including marketing) to break even isn't really a sustainable business model. Probably didn't help that the Valhalla DLC was free either.

Problem is this setup doesn't seem to work for anyone but Nintendo because they committed to doing that 20+ years ago. Even on the GameCube, they released games like Animal Crossing and Pac-Man VS. Pokemon was really the first blockbuster game that was several generations behind graphically from the norm of the time -- released in 1998 in the West and took as a big hit. 

Sony's kind of stuck in the model they have, don't know if they can just suddenly change course. Looks like PC game releases for them are going to have to become closer to day and date with PS5 and who knows even beyond that, maybe XBox/Switch 2 versions of some of their IP may be warranted in certain situations. 

Their game budgets are insane too -- 315 million for Spider-Man 2 and I believe that's before marketing costs.