Mobile gaming revenue accounts for more than half of the mobile gaming market. Sony is looking to diversify beyond consoles with its new dedicated mobile gaming division, PlayStation.

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Sony created a dedicated PlayStation mobile gaming device in a big push to diversify beyond consoles.

The Japanese gaming giant launched the PlayStation Studios Mobile Division on Monday and said it will operate independently of the console business.

Sony also said Monday that it has acquired Helsinki- and Berlin-based mobile game developer Savage Game Studios.

The move comes after a tough second quarter for Sony’s gaming division and the company downgrading its full-year profit forecast for the business as the Covid-fueled boom – during which people stayed home playing video games – begins to fade.

Sony also continues to face supply chain issues and is unable to meet demand for its flagship PlayStation 5 console.

Sony has dominated the console market for several years thanks to the PlayStation. But now the company is looking to diversify. This year, the Japanese gaming giant said it plans to release about 50 percent of its PC and mobile games by 2025, up from about a quarter now.

“For this to happen, Sony needs to make big bets on mobile gaming,” Serkan Toto, CEO of Tokyo-based gaming industry consultancy Kantan Games, told CNBC.

And the possibility is great. Consoles account for about 27 percent of the $196.8 billion gaming market, while mobile devices make up more than half of the revenue, according to Newzoo.

Sony’s mobile strategy

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The success of Call of Duty Mobile and Diablo Immortal on mobile, which were originally intended for console and PC, show there is demand for well-known titles on smaller screens “if they execute well,” according to Daniel Ahmad, senior analyst in Nico Partners.

Sony’s mobile strategy will likely build on its massive intellectual property (IP) library, but also with a focus on developing specific games for smaller devices, Kantan Games’ Toto said.

“Sony is very likely to not only port existing PlayStation IPs to mobile devices, but also encourage studios to develop new franchises for smart devices from scratch,” Toto said.

Chances of success