As part of a significant effort to go beyond consoles, Sony established a specialized PlayStation mobile gaming division.

On Monday, the Japanese gaming giant unveiled PlayStation Studios Mobile Division, claiming it will function independently of the console market, as reported first by CNBC.

Savage Game Studios, a mobile game company with offices in Helsinki and Berlin, was also bought by Sony.

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LAS VEGAS, NEVADA - JANUARY 04: President and CEO of Sony’s PlayStation division Jim Ryan speaks during a Sony media event for CES 2022 at the Mandalay Bay Convention Center on January 4, 2022 in Las Vegas, Nevada. CES, the world's largest annual consumer technology trade show, is being held in person from January 5-7, with some companies deciding to participate virtually only or canceling altogether due to concerns over the recent surge in cases of the omicron variant of Covid-19

"Expand and Diversify"

The decision was made following a challenging second quarter for Sony's gaming sector and the company's revision of its full-year earnings prediction as the Covid-induced surge, which led to more people playing games at home, started to slow down. 

CNBC noted that Sony's supply chain continues to have problems, and it is unable to match the demand for its newest PlayStation 5 console

The Japanese gaming powerhouse announced this year that it will release approximately 50% of games on PC and mobile by 2025, an increase from the current quarter. 

According to Newzoo, the venture has great potential because the $196.8 billion games market has a 27% market share for consoles and a 50% market share for mobile. 

With the acquisition of Savage Game Studios, Sony has continued its recent acquisition spree to accelerate the creation of games for several platforms. 

"PlayStation Studios must continue to expand and diversify our offering beyond console, bringing incredible new games to more people than ever before," Hermen Hulst, head of PlayStation studios, said in a statement.

"Acquiring the talented team at Savage Game Studios is another strategic step towards that goal." 

According to Sony, Savage Game Studios is developing a new, unnamed AAA mobile live service action game. It is worth noting that a triple "A' game is typically referred to as a blockbuster-style title. 

Read also: Sony's PlayStation 5 Consoles Have Become More Expensive Due to Inflation; Is There A Price Hike in the US?

Entering the Mobile Gaming Scene

Daniel Ahmad, the senior analyst at Niko Partners, told CNBC that there is a market for well-known games on smaller screens if they are done correctly. He cites the success of Call of Duty Mobile and Diablo Immortal on mobile, both of which were initially intended for console and PC. 

Sony is now the most recent console manufacturer to enter the mobile gaming space, according to CNBC. The Xbox gaming division of Microsoft has also started to make tentative advances in mobile. For the past three years, Nintendo has also put a lot of effort into the game format for smaller screens. 

In the global market, Sony will face competition from businesses it hadn't faced, including Chinese companies Tencent and NetEase, two of the biggest names in mobile gaming. 

Related Article: PlayStation for PC? Sony Reportedly Working on a New Games Launcher for the Experience  

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Written by Joaquin Victor Tacla

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