In the high-stakes world of video game consoles, where platform holders battle for exclusive titles and technological supremacy, a veteran voice is calling for a dramatic shift in strategy. Shawn Layden, the former chairman of Sony Interactive Entertainment Worldwide Studios, believes the entire industry is trapped in a cycle of limited growth, and his proposed solution is nothing short of revolutionary: a single, universal gaming format.
Layden, who left Sony in 2019 after a storied 32-year career, recently sat down with YouTubers Naomi Kyle and Pause for Thought. His central thesis is that despite gaming’s ballooning revenue—often cited as a $250 billion industry—the core console market hasn’t meaningfully expanded in decades.
“The number of discrete consoles sold over any particular generation caps out at about 250 million,” Layden stated, drawing on his deep industry experience.
He illustrated his point with a history lesson. The iconic generation of the PlayStation 1, Sega Saturn, and Nintendo 64 collectively hit that same approximate figure. The only notable spike came with the Nintendo Wii, which briefly pushed sales toward 300 million units by attracting a non-traditional audience with titles like Wii Fit.
“That was an anomaly,” Layden explained. “We’ve still flattened out. We need to crack that cap, that barrier.”
The "Betamax vs. VHS" Moment for Gaming
So, how does the industry break through this 250-million-unit ceiling? Layden points to the classic format wars of the past. He argues that the path to a truly mass-market audience isn’t through more powerful, segregated boxes, but through standardization.
“The only way we can do that is if… Sony’s Betamax format lost to VHS for one reason: VHS licensed its format across many different manufacturers,” Layden said, knowing the comparison would be controversial. His vision is for a common hardware foundation that any company could build upon, similar to how DVDs or Blu-rays became universal standards for film.
This, he suggests, would lower barriers to entry, reduce development complexity across multiple platforms, and ultimately attract the vast audience that currently plays casual games on phones or browsers but has never purchased a dedicated console.
But What About Exclusives? The Necessary Exception
Layden’s call for unity isn’t a blind plea to erase competition or the unique identities of platforms. He is quick to clarify that he isn't advocating for the end of the exclusive games that drive console sales.
“I don’t think every game has to be console exclusive,” he noted, “but I do accept the fact that if you’re going to have platform companies like Sony and Nintendo, there is a huge value to the brand of having strong exclusives.”
This nuanced take acknowledges the current market reality: system-sellers like The Legend of Zelda or God of War are crucial for defining a platform’s identity and driving its ecosystem, even within a stagnant overall hardware market.
You can hear Layden break down his entire argument in the full interview segment.
A Provocative Vision for an Industry at a Crossroads
Layden’s comments arrive as the industry grapples with soaring development costs, lengthening production cycles, and intense competition for players’ time. While the concept of a single, licensed console format seems distant—especially amidst the fierce rivalry between PlayStation, Xbox, and Nintendo—it sparks a critical conversation about accessibility and long-term growth.
Is the future one of continued fragmentation, or could collaboration on a universal standard be the key to unlocking gaming’s next billion users? Layden, ever the industry provocateur, has firmly planted his flag for the latter.
For gamers invested in the current ecosystem, the appeal of exclusive titles remains powerful. Those looking to dive into the current generation of console gaming can explore the flagship platform from Layden’s former company.
Shop the PlayStation 5 Console on Amazon
Whether the industry heeds his call or not, Shawn Layden has successfully framed one of its most pressing challenges: after decades of evolution, has the console business reached its natural limit, or is it simply waiting for its "VHS" moment?