Sony Group Corp’s CFO, Hiroki Totoki, has acknowledged a significant challenge facing the company: a lack of original intellectual property (IP). Despite its impressive portfolio, Sony has struggled to cultivate its own franchises, unlike competitors like Nintendo and Walt Disney Co., which boast a strong foundation of homegrown brands across various media.
Totoki told the Financial Times, “Whether it’s for games, films or anime, we don’t have that much IP that we fostered from the beginning. We’re lacking the early phase (of IP) and that’s an issue for us.” This statement has sparked a wave of nostalgia among PlayStation fans, who have taken to social media to share memories of beloved, but long-dormant, Sony franchises such as Sly Cooper and Resistance.
However, Totoki’s remarks extend beyond gaming. He highlighted the broader challenge of building a strong IP portfolio across all of Sony’s business segments, including film, anime, and other media. While franchises like The Last of Us have achieved significant success, especially with the acclaimed HBO adaptation, Sony’s transmedia offerings remain sparse compared to powerhouses like Nintendo, which has built a lasting legacy with iconic franchises like Super Mario and Zelda.
To address this, Sony has actively pursued acquisitions and partnerships to bolster its franchise portfolio. One notable attempt was the failed bid, alongside Apollo, to acquire Paramount Global for $26 billion.
In a separate interview, Sony CEO Kenichiro Yoshida emphasized the company’s strengths in technology and creativity. He stated, “We have the technology, and creation is the area where we like and where we can contribute the most. By putting our efforts in creation, that also means that we will work with partners on the distribution side. So I think we have developed very good relationships with the so-called Big Tech players.” This collaborative approach could open new opportunities for Sony, especially in the anime sector. Crunchyroll, a Sony-owned anime streaming service, has been expanding rapidly, with plans to co-produce shows to address rising production costs. Rahul Purini, Crunchyroll’s president, noted the massive global audience for anime, estimating a potential billion fans in the near future. He believes there’s an opportunity for companies like Sony to leverage digital technology and contribute to the anime creation process.
As Sony navigates this challenge, its focus on technology and strategic partnerships may provide a pathway to develop a stronger portfolio of original IP and compete more effectively in the evolving media landscape.
