Sony to boost gaming unit with $2.17 bln R&D war chest for 2024

Sony Group will boost research and development spending at its gaming unit by about 10% to 300 billion yen ($2.2 billion) this financial year, the Nikkei reported on Thursday.

R&D spending at the games business behind the hit PlayStation 5 console will surpass R&D spending on electronics and semiconductors this year, the business daily said.

Sony did not immediately respond to a request for comment but its gaming business has set out ambitious plans to invest in live-service games, which offer continuous updated play, and it also plans to offer more PC and mobile games.

Its stock was up 4% in Tokyo morning trade after a brokerage upgrade.

Rival Microsoft has turned to acquisitions to boost its subscription and cloud-based gaming services to better compete with market leader Sony.

On Wednesday the U.S. Federal Trade Commission said it was appealing a federal judge’s ruling that Microsoft could go forward with its $69 billion purchase of “Call of Duty” maker Activision Blizzard. Reuters