Former Sony Interactive Entertainment chairman Shawn Layden called for a unified gaming format to break the console market's 250 million unit ceiling. The industry veteran made the proposal during a December interview on the Pause for Thought and Naomi Kyle YouTube channel.
Console sales have plateaued at approximately 250 million units per generation for decades, Layden stated. The only exception was the Wii generation, which reached nearly 300 million units due to non-traditional buyers seeking fitness games. The gaming industry overall represents a $250 billion market with hundreds of millions of users, but discrete console sales remain constrained.
Layden pointed to the 1970s-1980s videotape format war as the model for expansion. VHS defeated Sony's Betamax by licensing its format across multiple manufacturers, while Betamax remained proprietary. "Betamax lost to VHS for one reason only: that VHS licensed its format across many different manufacturers," Layden explained.
The former executive proposed creating a gaming format consortium similar to those established for VHS, DVD, and Blu-ray. Such a consortium would develop a unified gaming standard that any manufacturer could license and implement. "Maybe it just comes from PC. Maybe we find a way just to do it all in a Linux kernel or something," Layden suggested.
This approach would allow companies to compete on hardware features and pricing while maintaining software compatibility. Consumers could purchase games that work across multiple manufacturers' devices, similar to how DVD players from different brands all play the same discs.
Implementing Layden's vision would require unprecedented cooperation between Sony, Microsoft, and Nintendo. Microsoft appears most receptive given its multiplatform strategy, while Sony has begun releasing some titles on PC and Xbox. Nintendo remains the least likely participant, maintaining exclusive control over franchises like The Legend of Zelda.
Console exclusives still provide significant brand value, Layden acknowledged. "If Mario starts showing up on PlayStation, that's the apocalypse, right? Cats and dogs living together. And the same goes for Nathan Drake and Uncharted. They make the platform sing," Layden said. However, he believes not every game needs platform exclusivity.
The proposal arrives as all three console manufacturers plan next-generation hardware. Sony is developing PlayStation 6, Microsoft has committed to a next-gen Xbox reportedly featuring PC/console hybrid capabilities, and Nintendo recently launched Switch 2. These separate platforms continue the industry's traditional walled-garden approach.
Layden's consortium model would theoretically enable any company to manufacture PlayStation or Xbox-compatible hardware, creating broader market competition. The former Sony executive described the current situation as being "trapped in this containment field" that limits industry growth.
The gaming format concept aligns with Microsoft's stated goal of reaching gamers across all platforms. Sony has taken initial steps toward multiplatform releases with titles like Helldivers 2 appearing on Xbox. Nintendo maintains its traditional exclusive-first strategy.
Industry adoption of a unified format would mark the most significant structural change in console gaming since the transition from cartridge to disc-based media. The proposal faces substantial implementation challenges but addresses a long-standing market limitation identified by one of Sony's most experienced gaming executives.
