Former Sony Executive Explains Reasons Behind Japan Studio Closure

Overview of Japan Studio’s Closure

Shuhei Yoshida, former head of indies at PlayStation, has shed light on the closure of Japan Studio, attributing it to the challenges of producing successful AAA titles.
He indicated a significant shift in Sony’s focus towards larger AAA games, making it increasingly difficult for Japan Studio’s smaller AA games to thrive.
Yoshida was unable to greenlight various AA game projects, including a notable concept from Keiichiro Toyama, the director of Gravity Rush 2 and Slitterhead, prior to the studio’s shutdown.

In a recent discussion, Shuhei Yoshida reflected on the factors leading to Japan Studio’s demise, marking the gaming market as “really difficult” for smaller titles to achieve success. He highlighted the heightened expectations Sony imposed on its developers, especially for the creation of top-tier AAA games.

As Yoshida announced his departure from his role within Sony Interactive Entertainment, effective January 15, 2025, he reminisced about his over 30-year career with the company. Upon transitioning to lead the indies division in 2019, he felt as though he had “no choice” but to accept this responsibility. Just two years later, in 2021, Japan Studio underwent a reorganization that ultimately led to its closure.

Insights from Shuhei Yoshida on Japan Studio’s Shutdown

The gaming landscape has shifted unfavorably for Japan Studio’s AA titles, while indie games are experiencing growing interest.
Japan Studio struggled to produce “amazingly successful”games and was unable to pivot to align with Sony’s changing focus on AAA and live service models.

Yoshida further clarified that he struggled to develop a successful live service game during his time at Sony. The growing popularity of indie games prompted a strategic pivot within Sony, leading the company to overlook Japan Studio’s properties. Consequently, he transitioned to collaborate more with independent developers, especially after his successor, Hermen Hulst, took over the presidency.

Following the closure of Japan Studio, many former employees found new opportunities, with a notable example being Keiichiro Toyama, who went on to establish Bokeh Game Studio and release Slitterhead. During the podcast, Yoshida also mentioned Ratatan, a spiritual successor to *Patapon*.Although Japan Studio no longer exists, Yoshida believes that Ratatan continues its legacy, showcasing the type of innovation that Sony may not currently pursue.

Although set to leave Sony in January 2025, Yoshida remains active in the gaming community. Among his recent ventures is his role as a voice actor for an indie game titled *Promise Mascot Agency*, and he expresses excitement for potential developments regarding the anticipated Nintendo Switch 2.

Source & Images