The upcoming Sony PlayStation 5 next-generation gaming console with top-end graphics capabilities including Ray Tracing is on track, claimed the company. The PS5 console will certainly not be just a dedicated game and game-centric device, but will play multiple roles, indicated Sony as it outlined its long-term strategy for growth. As the average consumer is being attracted by powerful companies like Google (Stadia), Microsoft, Apple, and others with their cloud gaming services, Sony appears to be attempting to offer better services and access to additional platforms.

Sony’s mid to long term growth strategy for its Game and Network Services is based on four important growth metrics, noted the company. These include “Strengthening First-Party IP and Content, smooth transition to the next-generation gaming console, content distribution strategy, and cost management”. The company appears to have neatly explained what each of the major aspects means and how it plans to implement the same going forward.

Sony Confirms PlayStation 5 and Premium Game Titles For PS5 Are On Track But Cloud Gaming Will Play A Huge Role:

Sony has been actively scouting for premium game development companies, and the recent acquisition of Insomniac Games is a perfect example. To date, Sony has acquired 14 game development studios, which clearly indicates the company could be reducing its internal game development activities, and instead, focusing on other gaming-centric activities that are outward or consumer-facing. The company further indicated that development on the PS5 console as well as the game titles that could launch simultaneously with the PlayStation 5 are “progressing smoothly”. The company confidently implied that the PlayStation 5 will launch in the year-end selling season of 2020.

Slide below is from Sony’s report.

Sony notes that they plan to strengthen first party content and IP by enhancing the existing studios they have and looking for growth investment opportunities that enhance content IP. Looking at additional M&A opportunities etc…

— Daniel Ahmad (@ZhugeEX) October 30, 2019

Despite the inclusion of top-end powerful hardware within PlayStation 5, Sony is aggressively pursuing cloud gaming. The company claims it is well aware of the increasing demand and competition in the remote gaming segment wherein the majority of the resource-intensive processing takes place on remote servers. Sony has claimed that the “Cloud” distribution of game titles will be as important as Blu-Ray disc editions. The company has long back started promoting digital game distribution, and that technique is here to stay. The success of discless game distribution is apparent from the 1 million subscriber milestone, which was majorly due to attractive prices combined with new game launches.

Sony To Terminate PS Vue Content Streaming Service Due To Changing Market Consumption Patterns And Rising Competition:

Sony has been reportedly trying to find a buyer for its PlayStation Vue or PS Vu content streaming and distribution platform. However, it appears the company may simply shutter the service and cut its losses. Citing obvious reasons such as intense competition, which is only growing, and changing consumption patterns, Sony has decided to shut down PS Vue.

Cloud Gaming is set to play a large role next gen through PS Now.

Cloud is set to be a key distribution channel alongside Blu-Ray disc and digital download to allow players to play anytime, anywhere.

Recent price drop and new game launches led to 1m sub milestone.

— Daniel Ahmad (@ZhugeEX) October 30, 2019

The company did not indicate how the service faired or how many subscribers, PS Vue had, but claimed that shuttering the service won’t have any noticeable impact on revenue. In addition to the underperformance of PS Vue, Sony has also reduced its forecast for the game and network services division this fiscal year.

How Will Sony Move Ahead In The Coming Years:

Based on the string of tweets, it is amply clear that Sony is in the midst of a major consolidation. Moreover, the company is also attempting to reduce its own internal efforts to develop console-quality games. Instead, Sony appears to be focusing on the two most important aspects that the gaming industry wants. On one hand, Sony will certainly infuse the best available hardware in the PS5. The specifications and features of Sony PlayStation 5 haven’t been confirmed yet, and this means the company could still be improving the same.

Sony has reduced its forecast for the game and network services division this fiscal year.

Primary reason due to the delay of TLOU2 into next fiscal year as well as lower than expected PS4 sales in the first half of the year. Third party software revenue also lower than expected

— Daniel Ahmad (@ZhugeEX) October 30, 2019

On the other end of the gaming industry is the cloud gaming segment, which is growing rapidly. Companies like Microsoft, Google, Apple, and many others are experimenting with the segment. However, Sony has one of the most played and eagerly awaited game titles for PS 5, and that should give the company an upper hand. With PS Vue eliminated, Sony PS5 appears to be a purely game-centric ecosystem. However, with partnerships and collaborations, the company could easily add a lot of streaming content quickly.