The PlayStation brand has had an interesting evolution over the years. From a more Western-centric approach to game production and moves like shifting the Sony Interactive Entertainment headquarters to California from Tokyo in 2016, the gaming giant is arguably less relevant in Japan than it used to be.

Major developers like Japan Studio were also shut down a few years ago, and many believed this was part of a larger shift in the brand’s overall priorities. In fact, a new report reveals that previous PlayStation leadership saw nothing wrong with dwindling market share in Japan.

Discussing the recently released Japan-exclusive PS5, TV Tokyo shared interesting insights into the current state of PlayStation and its leadership. As reported by Hartmann on the Installbaseforum, PlayStation leadership was satisfied with the growing sales of the consoles worldwide.

They were so happy with the results, in fact, that they believed Japanese market share could be sacrificed for greater global appeal.

“It is acceptable if the Japanese market continues to shrink.” – TV Tokyo on PlayStation

It is said that this philosophy changed when Hideaki Nishino took over as co-CEO of the PlayStation business. Of course, this means that the leadership under Jim Ryan, who left Sony Interactive Entertainment in 2024, was the one fine with diwndling sales in Japan.

Under Jim Ryan’s leadership, PlayStation shifted its focus to live-service gaming and broader appeal. Many believed that the gaming giant lost an important part of its DNA as part of this shift, but Sony is on track to reverting its stance on Japan, with Nintendo playing a major role in this situation.

It is said that Nintendo’s Japan-only Switch 2 motivated PlayStation to launch a new PS5 model for just 55,000 yen, approximately $350. On the other hand, the PS5 starts at $500 in the US market, highlighting just how big of a discount Sony is offering to Japanese users in an attempt to regain lost market share.

Moreover, games like Astro Bot highlight a return to PlayStation’s roots with a focus on more unique experiences. This, combined with the latest discount on the PS5, could prove to be a turning point for the gaming giant in Japan.