Into the SonyVerse (Part 2)
The future of Sony Pictures & Interactive Entertainment
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Hello and welcome to part 2 of Into the SonyVerse! If you haven’t read part 1 here’s a link and we’ll see you shortly. The last post ended by discussing how Sony should build their own streaming service. Doing this, Sony forges ahead into the future of media and metaverse – A SonyVerse. How does a streaming service and Sony pictures connect to a SonyVerse? Well I present to you...
The Sony Flywheel
This is inspired by Walt Disney who created a visual strategy guide for Disney and Matthew Ball who created one for Epic. I find these extremely helpful to visualize how subsidiaries interact and also serve as a future guide for the overall company. Don’t worry if it’s confusing, take a skim now and it’ll be at the end of the article for you to see again.
The SonyVerse
Imagine you turn on your PS5 or Sony TV and jump into the SonyVerse. You pop in a world with your avatar where you can walk around and hangout with your friends. There’s a virtual movie theater where you can watch Sony’s content or you can enter Crash Bandicoot world to race. After you’re done you go through a portal to Fortnite, or Minecraft, or Google’s world (whatever it may end up being).
This is just a glimpse of Sony’s future. To understand how Sony can develop this, let me first breakdown the 3 core layers of a potential metaverse.
Foundational layer. This consists of companies who will host the metaverse on servers and have hardware where individuals interface with the metaverse. An analogy for servers would be Amazon Web Services (AWS) or Microsoft Azure. Both companies host countless digital assets whether they are websites or video game servers like Fortnite. These companies do not create the websites or games but allow them to exist anywhere in the world at any time using their software. An analogy for hardware would be computers or phones where one can interface with the internet.
Tool Generation. Companies that occupy this space would build engines and services using code, architecture, and design. These would be specifically for others to create. An example today would be companies like Wix and Squarespace, who give content creators the tools to create whatever website they want. Without having to build from scratch. Unreal Engine (a part of Epic games) is another analogy. Unreal Engine gives developers (whether they’re in architecture, video games, etc.) the tools to imagine and build anything with increasingly life-like graphics.
Populating the World. The final layer comprises of creators (who range from individuals to corporations). These creators fill the world with their imagination. In the metaverse this could be places to hangout (worlds, islands, libraries), games with objectives, a digital movie theater, or simple videos. An analogy would be companies that create a website using Squarespace or Wix. Each site is built using the same toosl but look vastly different and serve different purposes. Similarly, game developers use Unreal Engine to create their games like Crash Bandicoot 4 (developed by Toys for Bob and published by Activision).
How Sony can have a stake in all 3 layers:
Foundation. Sony and Microsoft announced a partnership that focuses on cloud gaming/streaming, AI, and semiconductors. Sony should deepen this partnership to build the foundation of the metaverse. While AWS has a huge stake in hosting today's version of the web, Sony & Microsoft could be next. On the hardware side, Sony is spread across mobile, TVs, projectors, and playstation. Sony should ensure that each device comes readymade to interface with a SonyVerse. In addition, while 2D screens are the current iteration of interfacing with media, the future will look to expand through AR/VR. If Sony wants to continue to be dominant in this space, they should continue to develop this technology.
Tools & Engines. Sony currently has a strong relationship with Epic Games, the creators of Unreal engine mentioned earlier. Sony should expand this partnership with Epic to push the limits of virtual spaces. As I published part 1 of this article, Sony announced a 250M investment into Epic. This not only solidifies their partnership but Sony gains a minority stake in the company. It’s safe to say that Sony will be enjoying the future ride with Epic.
World Building. This is where we come full circle and why it’s important for Sony to keep its motion picture studio. Sony Pictures & Interactive Entertainment should create transmedia worlds and characters. These stories should be shown in theaters, viewed on their streaming platform, played as video games, and interfaced in a SonyVerse. Sony wouldn’t have to reinvent the wheel, as Disney already does a fantastic job with their IP (through physical properties). Disney builds worlds and characters that translate to the screen, merchandise, and theme park rides. Sometimes theme park rides inspire movies (Pirates of the Caribbean). Sony can ease transmedia creation with these 4 steps –
Create a division of people from Sony Pictures and Interactive to identify IP they can use to create transmedia. This IP can be one that Sony owns or can be purchased (books, comics, reddit, older shows/movies). A few that come to mind that Sony currently owns are Jump Street, Spiderverse, Jumanji, Cloudy with a Chance of Meatballs, Smurfs (Yes it hasn’t been great but it has potential).
Continue to innovate and build production studios similar to the ones used for The Mandalorian (Disney) and Orca studios. These have production spaces sounded by LED walls that can display scenes/locations limited only by imagination. Guess how these locations are made? Yup, using Unreal Engine. Using Unreal Engine will easily allow creators from one subsidiary to transplant in another. For example if a jungle scene created for Jumanji was built using the engine, this virtual set could then be transferred to Playstation Studios (Sony’s game development studio) and used for a video game. With no extra cost or time.
Sony Animation and Epic Games should either create a new animation software compatible with Unreal Engine or make the Sony’s current software compatible with Unreal. This reason is the same as the previous point where virtual sets in animation can then be used in production spaces for live action or video games.
Sony Interactive should start building a digital theme park. While a true metaverse is more than a virtual world/digital park – the first iteration of a SonyVerse could be a fully immersive space where characters and worlds intersect on a large scale. For those saying – a digital theme park has never been built before! Who needs it? Walt Disney never built a theme park before and many doubted its necessity/success and yet (pre-coronavirus) the parks division was the crown jewel of Disney. Subscribers of Sony’s streaming service will also get exclusive access to this digital world.
World Building (Cont.) Epic/Sony’s combined statement last week contained this little gem– “we share a vision of real-time 3D social experiences leading to a convergence of gaming, film, and music”. This brings us to the last point – Sony Music Entertainment. Sony Music is huge. No Really. Look at their artist page. They got everyone from Yo-Yo Ma to Beyonce to Michael Jackson and this is just with my American centered brain. They also have many international artists (Badshah, Maluma, Alan Walker, & more). Why is this important? Well have you ever noticed that Michael Jackson songs are frequently used in Sony films? That’s because they own the rights to it. Now imagine you’re strolling around the SonyVerse and you happen to see a digital music festival happening. Calvin Harris, Shakira, and J Lo are headlining it. This is possible because Sony has these artists on their label. These are just a couple of the ways Sony Music can give artists deeper access to their fans and strengthen the connection between Sony and their customers.
We started this article almost feeling bad for Sony. They’re small compared to behemoth Disney, lack a streaming service when all other major studios have one, and don’t have brand name franchises like WarnerMedia, Disney, and Universal. Hopefully I’ve illustrated why they’re not to be underestimated. With the right strategy, leadership team, and execution Sony can cement themselves in the future of digital media and ensure their future success.
Thanks for reading and let me know what you think! Always love to hear feedback on current/past articles as well as suggestions for future topics.
About Me (Harnek)
I’m a screenwriter and upcoming associate at @McKinsey in September. I graduated from University of Michigan in 2015 with a degree in film. Took a quick detour going to medical school (also at Umich) but now I’m back in the media/business world.
I Listened to these soundtracks while writing this post.
Jumanji Welcome to the Jungle – Composed by Henry Jackman
The Social Network – Composed by Trent Reznor & Atticus Ross. They won the oscar for Best Score in 2011 for this film … (hot take incoming) How to Train Your Dragon by John Powell was better.