

Shuhei Yoshida Speaks Out After Retirement, Contemplates Closure of JAPAN Studio and the Fall of AA Game Development
Following his retirement from Sony Interactive Entertainment (SIE) in January 2025, Shuhei Yoshida—one of the key figures in PlayStation’s narrative—has finally shared his thoughts in a rare and open interview. Renowned for his role as President of Sony’s Worldwide Studios and as a well-loved public representative of the PlayStation brand, Yoshida recently conversed with Japanese outlet AV WATCH, illuminating the internal choices that resulted in the closure of significant development studios, including the previously esteemed JAPAN Studio.
A Legacy of Creativity and Enthusiasm
Shuhei Yoshida’s tenure at Sony spans numerous years, with his leadership being instrumental in the accomplishments of the PlayStation 4 era. He played a significant part during the console’s debut, famously featuring in the widely-shared “PS4 unboxing” video back in 2013. Under his direction, Sony’s Worldwide Studios delivered critically lauded titles and nurtured strong relationships with both AAA and indie developers.
However, Yoshida’s journey took a significant turn in 2019 when he reportedly had to relinquish his AAA leadership position after CEO Jim Ryan took charge. He was reassigned to spearhead the Independent Developer Initiative, which many perceived as a demotion. His successor, Herman Hulst, has now also been removed from his executive position, with Hideaki Nishino currently acting as the sole CEO of SIE.
The Diminution of AA Game Development
In his recent discussion, Yoshida provided a rare inside look at the internal goals that influenced Sony’s game development strategies. He articulated that his aim was to supervise first-party development with the intention of creating games that could boost hardware sales. “If we produced something like that, the company would definitely rally behind it,” Yoshida remarked, referencing blockbuster titles capable of becoming system sellers.
Nevertheless, not every creative idea fit this framework. Yoshida acknowledged that numerous Japanese developers proposed “very creative and interesting” ideas which were ultimately considered too small-scale to receive full backing from Sony’s top executives. These projects fell into the AA category—mid-tier games that typically prioritized innovation over spectacle—rather than the AAA titles that dominated Sony’s release schedule.
JAPAN Studio: A Casualty of Global Trends
Among the most important insights from Yoshida’s interview was his reasoning for the closure of JAPAN Studio, a cherished developer behind cult favorites such as Gravity Rush, Ape Escape, and The Last Guardian. The studio was officially closed in 2021, with its surviving members merged into Team Asobi, the creators of the highly acclaimed Astro Bot series.
“That’s also the reason JAPAN Studio vanished after I stepped down from my position as President of Worldwide Studios,” Yoshida remarked. “At that point, JAPAN Studio was a studio and a team adept at crafting AAs,” he went on to explain, noting that the company’s focus had transitioned away from such projects toward globally marketable, high-budget blockbusters.
Yoshida attributed this transition to the wider forces of globalization, which, he stated, complicated the chances for distinctly Japanese games to prosper in the global market. “Even though we developed engaging Japanese-style games, companies were not very eager to promote them, and we faced challenges in achieving returns on our investments,” he mentioned.
A Transforming Industry Landscape
Yoshida’s remarks point to a broader trend in the gaming sector, where mid-tier studios and experimental titles are increasingly finding it difficult to gain backing from major publishers. As development expenses rise and market expectations increase, companies like Sony have concentrated their efforts on well-established franchises and blockbuster experiences, often at the cost of smaller, more experimental titles.
Nonetheless, Yoshida’s zeal for innovation remains undiminished. Even after his reassignment in 2019, he supported independent developers and facilitated a diverse range of games within the PlayStation ecosystem. His retirement in 2025 signifies the conclusion of a significant era, but his influence continues to resonate throughout the industry.
Looking Forward
As Sony embarks on yet another leadership change with Hideaki Nishino taking over as CEO, the company’s future trajectory remains unclear. Will there be a renewed emphasis on creative risk and support for AA development, or will the inclination towards blockbuster exclusives persist?
For the time being, Shuhei Yoshida’s insights act as a poignant reminder of the fragile balance between commercial viability and creative expression in the gaming industry. His frank interview not only illuminates the internal workings at Sony but also ignites a broader discussion regarding the significance of mid-tier games and the necessity of preserving diverse perspectives in game development.
In an industry frequently propelled by metrics and marketplace dynamics, Yoshida’s voice emerges as one that champions creativity, innovation, and the human element that renders gaming truly exceptional.
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