Sony's Japan Studio Closure Tied to Decline of Double-A Game Market

Former PlayStation executive Shuhei Yoshida reveals market challenges and focus on AAA titles led to the studio's 2021 shutdown.

Shuhei Yoshida, former PlayStation executive, stated that the disappearance of the double-A game market was a major factor in Sony Japan Studio's closure.
The studio struggled to produce AAA-level hits, with Gran Turismo being the exception, while most of its games fell into the double-A category.
Market conditions made it increasingly difficult to greenlight innovative but smaller-scale projects, such as those pitched by Gravity Rush 2 director Keiichiro Toyama.
Sony reorganized Japan Studio in 2021, retaining Team Asobi, which later created the critically acclaimed Astro Bot.
The closure allowed former Japan Studio talent, including Toyama, to pursue independent projects, such as the 2024 release Slitterhead.