November 09, 2019
Jack Tretton ’83, formerly of Playstation, discusses the industry
By Vicki-Ann Downing
Jack Tretton ’83 was the CEO and president of Sony Computer Entertainment America from the rollout of the original PlayStation console in 1995 through the launch of PlayStation 4 in 2014.
Today, he is a partner in two investment funds that finance video game development. His consulting and investment company, Coastal Interactive Associates, provides market analysis, merger and acquisition support, strategic management services, and funding services to the consumer electronics industry.
Tretton, a marketing major at PC, and his wife, Diane M. (Sisk) Tretton ’85, live in Marco Island, Fla.
Video games were toys that appealed to boys ages 12-17. What happened with that demographic?
Gaming today is absolutely mainstream entertainment, and not just for men. There’s a huge female audience. It’s hard to find someone today who hasn’t played a video game. It’s a $100-billion-a-year industry, bigger than the box office and the music industry combined. Instead of trying to compete for people’s entertainment time, it consumes people’s entertainment time. It’s a threat to movie audiences and TV audiences. Everyone wants to get involved in the industry because it’s where consumers are spending their time. Advertisers are attracted to it. Movie companies are attracted to it. Now, Hollywood courts the gaming industry to find the latest hot games and story lines. You have movies based on video games rather than video games based on movies.
Do you play video games yourself?
Yes, it’s virtually required. I can’t spend billions of people’s dollars on things I’ve never touched myself. I always had a passing interest. Now it’s become my life. It’s no longer a hobby. It’s the way I make a living.
How would you describe your role in the industry now?
I worked for big companies on the multi-billion-dollar level for many years. Now, with the advent of digital publishing, small game developers can build games and sell them directly to consumers through online stores. The good news is they’re not beholden to a major company to tell them how to build their games and how to publish them; they’re able to be entrepreneurs. The bad news is they typically don’t have the financial resources to raise money to build successful games. They went to school for computer programming, they’re creative, but they don’t have the expertise to understand how to market games and draw consumers. We help with fundraising and go-to-market strategies. I’ve published more than 300 games in my career. Investors are attracted to the gaming industry, but they don’t really understand the business, so they’re gun-shy. We bring expertise and provide management oversight and support.
What’s the future of esports?
Esports is a very exciting phenomenon. It’s amazing that you can watch other people compete in a video game on TV or in an arena. Professional athletes and major networks are investing in it. Institutions are catering to esports because they want to follow the interests of potential students. There’s a great deal of interest in esports; it’s seen as cutting edge, so they need to be involved in it. But I still think it’s got a way to go before it’s like traditional sports, where fans spend a lot of time watching professional athletes play. For me, it’s hard to fathom there will ever be as many esports fans as there are NFL fans. But audiences are building, and people are realizing there is a true business here, with tremendous financial potential for competitors, the organizers of the competitions, advertisers, and game creators.
