340°

PlayStation 4 May Struggle With Profitability

IGN - Sony may be winning the race for positive buzz and consumer goodwill over its rival Microsoft in the months leading to the release of PS4 and Xbox One, but interesting choices the company made in recent years may hinder the company from making heavy profits once the console’s out the door.

mafiahajeri3911d ago (Edited 3911d ago )

It MAY rain tomorrow, it MAY hail it MAY be sunny! Lots if things MAY happen

Ezz20133911d ago (Edited 3911d ago )

i have crystal ball.....i stole it from IGN

*it will not rain tomorrow, it will be sunny, and i own ps4*

Gaming1013910d ago

You have to wonder what kind of credentials the so called writers at IGN have to analyze the financial situation of a company. My guess: probably not, which is a lot more likely than any of the guesses you'll see coming out of IGN.

Rhinoceros3910d ago (Edited 3910d ago )

kind of like how you guys seem to want to predict gaming on consoles that don't exist yet, and how everyone is a hardware engineer? Sony could take a s*** and you guys will eat it up like cake.

+ Show (1) more replyLast reply 3910d ago
piroh3911d ago

i don´t think so, console games are selling pretty well. software will cover all losses

NewsForge3911d ago

PS4 manufacturing price: 275$
PS4 sale price: 400$

They will make a profit!

Sitdown3911d ago

Does that manufacturing price include labor, shipping , etc?

GABRIEL10303911d ago

Sure,

Be a manufacturer, is the Sony's big advantage.

Jamaicangmr3911d ago

Where did you get the manufacturing number from?

I'm not trying to start sh!t or anything i just want wanna know for sure.

FamilyGuy3911d ago

LMAO, if that were true Sony would be selling the PS4 for $300 max!

Where are you getting that crazy number from? XD

ChrisW3911d ago

Does that $275 (more than likely inaccurate) price include shipping, storing, advertising, licensing, and other legal fees?

madjedi3910d ago (Edited 3910d ago )

Didn't zomgwtfbqq(banking/accounting analyst) from neogaf place it at $390-430 minus shipping, so sony is back in black per console after 1 accessory, 1st party title or ps plus subscription in na.

The $275 is something patcher guessed/predicted while having the systems $50-100 below final price announcements.

That and ps4 is expected either to either break even or be at a minor profit in eu ect because of the higher taxes ect.

+ Show (3) more repliesLast reply 3910d ago
thetruthx13911d ago

Wow 3.5 billion in losses geez

TheTwelve3911d ago

I don't often agree with Pachter, but:

http://www.playstationlifes...

"Sony almost certainly making a profit on $399 PS4"

3910d ago
88 movement3910d ago

Exactly! My girlfriend MAY be pregnant (I hope not oh lord)

+ Show (4) more repliesLast reply 3910d ago
PopRocks3593911d ago

Considering the PS4 is now practically owning all other game hardware in pre-orders, I don't imagine Sony losing out on software profitability.

s8anicslayer3911d ago

I agree and if you can't sell then how can you be profitable? Sony will sell tons of PS4's and shall recoup a lot of money that was last as of late. Sometimes I think these journalists talk out their arse!

PopRocks3593911d ago

Indeed. I'm willing to bet that Sony is not taking nearly as large a loss on PS4 as the one they took on the PS3. In that regard it will be much easier for them to make profits off of any software they put out. Not to mention what happens when PS4 hardware becomes cheaper and they start making a profit off of that as well.

Bigpappy3911d ago

Pre-orders are a very small part of total sales. But the more you have the better your outlook will be. Point is: PS4 could have a 4:1 lead over X1 in pre-orders, but come year end they could still end up much closer in actual sales numbers or PS4 could have a much wider sales margin.

You can still be excited about pre-orders (there are a great indicator of intent to buy), but done take them as a direct indicator of the FUTURE sales numbers.

wsoutlaw873910d ago

the numbers at the end of the year will pretty much be, who had the most supply. Both companies will ship all they have.

3910d ago
GribbleGrunger3911d ago

I don't really care if Sony don't make much of a profit. All I care about is Sony making games.

KwietStorm_BLM3911d ago

That's pretty ignorant, especially considering where they're coming from. If they don't make profit, they won't be making games.

GribbleGrunger3911d ago

Yeah, they didn't make games for the PS3 either. I apologise for my ignorance.

nukeitall3911d ago

I was just about to say that. It is a two way street. It has to be good for both the company (and by extension the employees) as well as customers.

GribbleGrunger3911d ago (Edited 3911d ago )

No, that's not how it works at all. When a new console is released, they seldom make any profit from it. Profit is usually a long term goal (hence slims and superslims). Sony rely on the previous generation of consoles to maintain a profit, and their games divisions to generate profit on the new system.

I've been following this business for a while you know. What we should be interested in is HOW LONG it takes them to make that profit on the hardware. Until that time, I'm just interested in the games because there's no data to work with. And without data to work with, any speculation would be ... well ... IGNORANCE.

nukeitall3910d ago

So at the time of this writing, 14 people (disagreed) thinks a business shouldn't benefit both consumers and the company.

Seriously?

What are businesses? Charity?

+ Show (1) more replyLast reply 3910d ago
KwietStorm_BLM3911d ago

Yes we all know the consoles generally don't make profit early on. The big difference is Sony is in a different position today than they were moving from PS2 to PS3. You had better damn well hope they continue to make good business moves TODAY, if you want them to continue making games. The reason they were able to sustain PS3 was because, again, they had not yet been been through the trenches.

kenshiro1003910d ago

They have to make a profit in order to keep bringing out those exclusives. I, for one don't want to see Sony, Microsoft or Nintendo go under.

RicardJulianti3911d ago

Hardware profitability...probably. They are definitely selling it at a loss, so they'll need PS+ and digital software sales to be through the roof. Retails is good too, but a high digital attach rate brings in much more dough. Especially if they are first party games.

sdozzo3911d ago

Yawn. These articles are lame. Enjoy the damn games.

TheTwelve3911d ago

Some people like games AND the industry. It's ok.

sdozzo3910d ago

I have never seen so many horrible articles about two systems/companies before the hardware and software actual hits the shelves. Talking and enjoying the industry are one thing... awful slander is another.

Show all comments (67)
280°

Sony Taps Bungie's Head of Revenue to Lead Live-Service Games

Sony has recruited Bungie's head of revenue Jaremy Rich to head up its live-service gaming division, Rich has announced on social media.

Read Full Story >>
techraptor.net
ChasterMies20d ago

Please do not put Destiny’s monetization into Sony’s first party games. The monetization is what’s driving players away from Destiny.

just_looken19d ago

The new temp boss is the sony cfo bean counter so i can see this being a thing get every penny.

Cacabunga19d ago

PlayStation officially losing it.. fans will never support gaas games

just_looken19d ago

@car

The new boss did a interview in japan he wants to tap into the mobile market like nintendio so he give 0 fucks about gamers/fans

https://www.pushsquare.com/...

Redemption-6419d ago

@Cacabunga
You only speak for you and those who think like you, but most fans will support what they want. Playstation and PC fans are literally supporting Helldivers 2 and that is a gaas. Maybe you wouldn't, but many more would if they like it.

Huey_My_D_Long19d ago

@Redemption-64
Look, Im not making any judgement calls about this guy, but I will say that Helldivers 2 GaaS model is unique to Helldivers, and legit the only other game I can think of thats similiar was the Avengers game except HD2 pass is still better.
The fact that you can earn in game currency in a way that doesnt make you feel like you have to grind forever, as well you being able work on that pass that you bought...on your own time without a time limit...that right there is fucking huge to me, and I can't name any game other than avengers that avoided trapping players with FOMO logic...I think GaaS on HD2 shouldn't be compared to the rest of the industry...it should be copied.

Einhander197219d ago

Cacabunga

Helldivers 2...

Redemption-64

In Europe it's a 60 40 split favoring PC.
In the US its a 60 40 split favoring PS5.

So PlayStation owners supported the game just fine, it's not getting carried by PC or anything like that.

FinalFantasyFanatic19d ago

@just_looken,
I'm perfectly fine with the way Nintendo entered the mobile market, I never touched their mobile games, meanwhile, the console/handheld stayed the way it is. As for being a bean counter, he's probably going to reel in these massive budgets that Sony's studios have had lately, I haven't played Spiderman 2, but I cannot see how they almost tripled the budget for that game.

@Redemption-64,
That's an exception to the rule, I'm expecting a lot of these GAAS games from Sony to fail, to be fair, they only need a few to succeed, but I would have preferred that they put more of their resources into other types of games.

+ Show (3) more repliesLast reply 19d ago
DivineHand12519d ago

True their monetization is driving players away and at the same time, their decision to chop out content and convoluted systems is keeping new players away from the game.

Joe91319d ago

I don't think that will happen based on how things worked out at Naughty Dog now that we know what we do, seems they had the option to fully commit to live service games or stay making single player experences so they gave up on their live service game. We are not sure how things came about with Bend making a live service game but I hope that was not a forced situation. Sony doesnt seem like they are forcing studios to switch up but we will see, Sony's bread and butter is single player games it is how they dominated the console market.

Obscure_Observer19d ago

Yeah, I though Sony learned something from all their failures in the LS segment under Bungie´s disastrous leadership and supervision which led to games been cancelled, studios closed and all the people laid off.

Looks like Bungie still plays a major role in Sony´s LS initiative and Sony is not backtracking on their GaaS plans.

S2Killinit19d ago (Edited 19d ago )

Are we forgetting that Destiny is also a highly successful franchise? I feel like that definitely deserves mention here.

Besides, there is no reason why a person cant learn from past experiences.

Joe91319d ago

I agree, people act as if Destiny flopped when it came out lol it took 9 to 10 years for the numbers to fall yet people are still playing it add the success of Helldivers 2 no wonder Sony is going forward down this path.

S2Killinit19d ago

Personally, I see no problem with Sony also having service games as long as they make good ones, and more importantly they deliver the AAA story driven games that they are known for. So yeah, I agree 100% with you.

+ Show (2) more repliesLast reply 19d ago
Christopher19d ago

I mean, this person made some pretty bad decisions at Bungie. I hope they've learned from them because I definitely don't see those type of ideas as good for PlaySation in general.

CrimsonWing6919d ago (Edited 19d ago )

Honestly, what’s to learn from? How to make people happily continuously dump money into a single game over its life-time? Buy season passes continuously for several years with a smile on our faces?

GaaS is a design decision that is everything wrong with this industry. The fact that Helldivers 2 did so well and people defend the monetization because it was $40 and is a fun game, scares the sh*t out of me to see that the door is open and all shift will probably be to replicate that in future games. We already know the ROI for traditional game dev cost isn’t doing it for them.

I thought with Jimbo leaving we’d see a change for the better… I’m not so sure now.

S2Killinit19d ago

Service games are being offered by everyone. Sony cannot afford to only create single player AAA games. No one can. They already said they will be doing both.

Abnor_Mal19d ago (Edited 19d ago )

Ps5 gamers in 2023 seemed to play more live service types of games, so regardless to how people feel about them, numbers don’t lie and Sony is going where the money is. I mean look at the excitement around Helldivers2, people are showing that they want live service games.

Christopher19d ago

They play long-time existing live service games like CoD, Fortnite, Apex Legends, Destiny 2, and the like. Mass majority of new live service games are considered failures and aren't moving gamers away from older games.

just_looken19d ago

Yep the huge issue with live service is they need paid players along with a reason to play them.

You forgot mobile market that also taps into that player base as well as the eve online style games there is only a certain amount of krakens/whales blind supporters compared to the amount of live service games we have its not sustainable math wise.

700 restaurants making food for every seat for 1000-3000 eaters just does not work out

Einhander197219d ago (Edited 19d ago )

Christopher

I am not a big live service fan and literally own zero of the games you listed, but that is not true, unless you call games that aren't the top games to be failures.

There are tons of live service games that are profitable.

Games don't have to be the biggest game ever they just need to make more than they cost.

I challenge you to show professionally prepared data that shows that more live service games fail than make enough to keep going.

Because all the data that I have seen shows that live service is less of a gamble than making a big AAA budget game which needs to survive off retail sales.

FinalFantasyFanatic19d ago

I sometimes wonder if we're at saturation point, where it's hard for a new game to join those ranks unless it's particularly exceptional, people only have so much time and money to devote to these types of games.

romulus2319d ago

Correction, they have no issue playing good live service games

shinoff218319d ago

Lol it's not even a quarter of the ps5s sold. Helldivers may have been a hit but let's not say most are enjoying it because truth is most(the real most ) don't care about it.

S2Killinit19d ago (Edited 19d ago )

I play what is fun. If a live service game is good I’ll play it as long as its not a money scheme which Helldivers is not.

And Im a single player gamer.

mastershredder19d ago

How do you kill a franchise that already been killed?
Destiny’s grind, cash-in-on-playbass-cha-Ching, and pop-culture-insertion mainstream-me-too bs totally killed any rep Bungie had. Sony/Bungie, if you are doing this to ward-off players, it’s already working.

crazyCoconuts19d ago

Headline truncated:
"... off a cliff"

Show all comments (43)
80°

Sony May Soon Let You Decide How Much NPCs Talk In Games

Sony has patented to add multiple dialogue modes to let players switch between how many conversations with NPCs they want in the game.

blackblades25d ago

Sony is like the only ones outta the 3 that has atuff like like this pop up changing thing in ways.

just_looken25d ago

Sony in the past has always been first at bat with new ideas/tech but in the end never fully use it or just toss it away.

blackblades25d ago

I think they did use some but yeah most usually never happened but at least they thought about it. Sony seeks things like this and other, Nintendo seek different ways of playing going by there different controler designs and console designs.

just_looken25d ago (Edited 25d ago )

some of the other stuff sony want's/owns never used
https://gamerant.com/sony-p...
https://gamerant.com/sony-p...
https://www.eurogamer.net/s...
https://metro.co.uk/2023/03...
https://decrypt.co/114754/s...

monitor/adjust game difficultly as you play
https://www.techradar.com/g...

Sony nfts
https://www.theblock.co/pos...

Pay ai to play the game for you
https://thebusinessofesport...

Oh all the above last 12 months

I just imagine a evil scientist with test subjects when it comes down to sony recent patent reports.

Kaii25d ago

Will we get dialogue options that won't spoil puzzles in a matter of seconds? :p

280°

Judge rules in PlayStation's favour in $500m patent infringement lawsuit

Genuine Enabling Technology was seeking damages, claiming the tech allowing PlayStation consoles and controllers to communicate infringes its rights.

Read Full Story >>
gamesindustry.biz
S2Killinit27d ago

Big victory for Sony. And a long time coming.

DarXyde27d ago (Edited 27d ago )

Crazy to think the savings from this lawsuit allows them to develop one AAA game.

Make it Bloodborne 2, please and thank you.

27d ago
Profchaos27d ago

Sounds like patent trolling they tried the same thing against Nintendo with the same pattern.

Motion and control input traversing over higher and lower frequencies seperate from each other allowing the controller to do both

Pyrofire9527d ago

Patents suck. Most of them are complete garbage.

Knightofelemia27d ago

So to recoup the money Genuine is going to take on Nintendo or Microsoft next. I hate patent lawyers they are some of the worst bottom feeders out there.

Show all comments (13)