PlayStation exec says the games industry still has a strong future

The games industry has had a rough few years, but Sony’s Christian Svensson does not believe the future is as bleak as some headlines suggest.

Svensson, who serves as VP and Head of 2nd/3rd Party Content Ventures and Strategic Initiatives at Sony Interactive Entertainment, pushed back against recent “doom talk” around the industry. Speaking on The Game Business podcast, he said the next few years look extremely strong based on what he has seen from partner roadmaps.

His view is simple. The industry has real problems, including layoffs, studio closures, longer development cycles, and rising budgets. But he does not believe demand for games has collapsed or that the industry is heading toward anything like the 1980s crash.

That matters because some developers, including John Romero and Brenda Romero, recently argued that the current state of the industry feels worse than the old crash. Svensson clearly disagrees.

The key difference is demand. The 1980s crash happened partly because players lost trust in games after the market was flooded with low quality releases. Retailers were stuck with unsold inventory, revenue collapsed, and confidence disappeared.

Today’s situation is different. Players are still buying games, major releases still perform well, and industry revenue is still growing. The pressure is coming more from the cost side than from a lack of interest.

Here is the contrast:

Svensson said he has visibility into games planned for the next three to five years through Sony’s partner relationships, and that the content pipeline looks “unbelievably positive.” He believes 2026 will be better than 2025, and the following years could be stronger again.

That does not mean the industry is healthy for everyone. Layoffs are real. Smaller studios are under pressure. AAA budgets are difficult to manage. Games are taking longer to make, and publishers are becoming more careful about what they greenlight.

But Svensson’s argument is that the product pipeline remains strong. In other words, the business model is under pressure, but the audience has not disappeared.

He also said decisions being made now will shape where the industry is five or six years from now. That is important because game development cycles are long. A studio changing strategy today may not show the result until the next hardware cycle or beyond.

AI is part of this discussion too. Many publishers, including Sony, are exploring AI tools to improve efficiency and reduce repetitive work. That is controversial, especially when AI touches creative jobs, but it also shows why companies are trying to solve the cost problem without slowing production even further.

The optimistic reading is that the next few years could bring a wave of major games from projects already deep in development. Titles like GTA 6, Marvel’s Wolverine, The Witcher 4, and many unannounced games could make the release calendar stronger than the industry mood suggests.

The cautious reading is that good games do not erase worker instability. A strong release lineup can exist at the same time as layoffs and difficult studio conditions.

Svensson’s point is still worth noting. The games industry is not facing a demand collapse like the 1980s crash. Players still want games, and big projects are still coming. The real challenge is whether publishers can build those games in a way that is financially sustainable and better for the people making them.