At CES 2023, Sony’s ‘Gran Turismo’ Signals a New Entertainment Strategy, Reports Reuters

By Dawn Chmielewski

When Sony Group previews “Gran Turismo,” its much-anticipated film adaptation of the popular car-racing video game franchise, at the CES 2023 technology trade show, it will not just be showcasing a movie; it will be highlighting its evolution into a content-driven enterprise.

This film symbolizes Sony’s transition from a company predominantly focused on hardware, known for products like the Walkman and Bravia TVs, to a comprehensive provider of entertainment. It signifies a significant collaboration among various divisions, including Sony Pictures Entertainment, Sony PlayStation, and Sony Music, as noted by several current and former senior executives.

“I defined our identity as a creative entertainment company with a solid foundation on technology,” stated Sony’s CEO, Kenichiro Yoshida.

The appearance of “Gran Turismo” at CES, typically a venue for showcasing large-screen televisions and advanced robotics, follows an investment of $10 billion in music, gaming, and anime over the last five years. This film is just one of ten game-inspired projects currently in development.

HBO’s “The Last of Us,” which depicts a man tasked with smuggling a young girl across a pandemic-stricken America, is set to premiere on January 15. Observers have suggested this series may defy the trend of poor adaptations of video games.

Recently, Amazon Prime Video also ordered a live-action adaptation of the PlayStation hit “God of War,” based on Greek mythology.

Sony’s approach to being a “creative entertainment” company extends beyond films and television. A partnership with Honda will deliver an electric vehicle by 2026, designed to showcase Sony’s expertise in entertainment, gaming, and camera technology, as well as generating ongoing subscription revenue similar to other content services.

“Ultimately, we believe that mobility will evolve into an entertainment experience,” Yoshida remarked.

These ambitious projects, previously unattainable, have emerged from ongoing collaborations among Sony executives aiming for improved synergy across the company. Rather than compete directly with streaming giants like Netflix, Sony chose to partner with them, providing content for various platforms including Disney+’s offerings and major competitors like HBO, Amazon, and Apple TV+.

This strategic shift is reflected in Sony’s financial results, where two-thirds of the operating profits now stem from games, music, and film. The company reported an 8% increase in operating profit, totaling 344 billion yen ($2.6 billion) for the July-September quarter, surpassing analyst predictions. In November, Sony raised its full-year operating profit forecast, credited in part to the music division compensating for shortfalls in the gaming sector.

“This represents a complete transformation of Sony from an electronics manufacturer into a creative powerhouse,” explained Ulrike Schaede, a professor at UC San Diego. She noted that this newfound coherence in corporate strategy could facilitate better collaboration across divisions.

When Tony Vinciquerra took over as chairman of Sony Pictures in 2017, the division was struggling with several consecutive box office disappointments and a declining market for physical media. Despite rumors of a potential sale, Vinciquerra recognized the unique opportunity to harness Sony’s diverse assets: “Sony is the only company in the media industry with capabilities spanning television, film, music, PlayStation, and technology,” he observed.

Sony had long aimed for the synergy promised by its 1989 acquisition of Columbia Pictures, with mixed results that often devolved into mere marketing collaborations. To foster genuine cooperation, PlayStation Productions was established—an internal division dedicated to adapting games into films and series, operating from the Culver City lot.

PlayStation chief Jim Ryan emphasized the importance of communication: “We act as a liaison to Hollywood, working collaboratively and positively for the benefit of both divisions.”

This strategy paid off, exemplified by the success of “Uncharted,” which grossed $401 million worldwide and became the most-watched film on Netflix shortly after its release.

In another notable development, popular Puerto Rican rapper Bad Bunny, signed to Sony Music, will headline “El Muerto,” a film based on Sony’s Marvel universe set to debut in 2024.

Rob Stringer, CEO of Sony Music, expressed optimism about the collaborative spirit within the company under Yoshida’s leadership, noting that communication has improved significantly.

As the release of “Gran Turismo” approaches this August, excitement builds after a lengthy development period of 12 years. The film chronicles the true story of British racer Jann Mardenborough, who became the GT Academy Europe champion at 19 and achieved a podium finish at the 24-Hours of Le Mans.

Directed by Academy Award-nominee Neil Blomkamp, the film features actors such as Orlando Bloom and David Harbour.

“We’re telling a true story about wish fulfillment,” said Asad Qizilbash of PlayStation Productions. “This young man was passionate about Gran Turismo, and we’re honoring that legacy.”