Top
850°

Sony's wider problems heap pressure on PS4

The pressure on PlayStation 4 to perform this Christmas is high, as a bad quarter scythed Sony's annual profit forecasts by 40 per cent.

Sony hopes PS4 will "contribute to profitability from an early stage by diversifying its revenue streams through various network services centred on the PSN and by offering rich user experiences".

Read Full Story >>
eurogamer.net
The story is too old to be commented.
Sayai jin1001d ago (Edited 1001d ago )

It'll sell well...no doubt about it.

edited: spelling

slimeybrainboy1001d ago

I honestly don't know anyone IRL whos getting an XB1 (UK), every one of my friends is going PS4 even if they had 360's only last gen. despite that Ms will sell out so will Sony.

Lalanana1001d ago

By not including DLNA and MP3 playback in an attempt to force users to subscribe to Music Unlimited and their other streaming services is one of the ways sony will profit.

decrypt1001d ago (Edited 1001d ago )

@Lalanana

Sony is a corporation after all and is in it for the money. Any device backed by a corporation looking to make profit obviously wont come cheap. For cheaper alternatives there are open platforms such as the PC.

onyoursistersback1001d ago

I think it's better then holding app's you pay for monthly, behind a pay wall....

shoddy1001d ago

Sony might loose money but they still deliver great gaming service

Thehyph1001d ago (Edited 1001d ago )

I'm desperately waiting for more news regarding the mp3/DLNA availability. I need to know now.
This could very well be a deal breaker for me. I'm sure I'll get disagrees, but this functionality is extremely important to me.

I've been living without a solid PC (just an old netbook) for a while now, so a next gen console must have a lot of media features for me. This is a step backwards because it means that ps3 has more capability in this regard.

Don't bother suggesting Xbox One to me. I live in Canada, and many of Xbox One's media features are already a write-off because of copyright and publishing. (Edit: this is because of Canadian law, and not the fault of Microsoft)

I'm not being a hater. I pre-ordered and paid for a ps4 in full back in June or July, and I've been anxious since then, but yesterday was like a kick in the guts.

I like to think that I'm fair and objective about next gen competition. Just look at my comment history.

To some people out there, even if only a few, this is a real issue. I'm not trolling.

sincitysir11001d ago

I'm so glad I could care less about music not on the radio! I do think the music thing sucks tho.

On topic: the ps4 will do wonders for Sony as a whole. Spoke to yosp and asked for the good word. He said were golden. Golden.

badkolo1001d ago

maybe people who want actual games, cause as of now knack is for kids and killzone is the only exclusive for the ps4, so not much to play except indie and multi plat games. so trust me, the xbox will sell well becuase people want actual games

Hellsvacancy1001d ago (Edited 1001d ago )

decrypt

Wtf, don't defend Sony on this one, Sony fu<ked up, it's bs, I will never sign up to Music Unlimited, half of the music I listen to won't even be available on the service I bet

Anyone here got access to Music Unlimited? do a search for me please

- Flugufrelsarinn by The Kronos Quartet (NOT Sigur Ros)

So much for custom background music

decrypt1001d ago

@hellsvancy

Lol why would i be defending blood sucking corporate. Open platform ftw PC.

gaffyh1001d ago

"decrypt

@hellsvancy

Lol why would i be defending blood sucking corporate. Open platform ftw PC."

Open Platform = PC
Most games on PC = On Windows
Windows = Microsoft's
Microsoft = Blood sucking corporation

decrypt1001d ago (Edited 1001d ago )

@gaffyh

Which is why we only buy a MS OS once in half a decade lol, that too on some discount. Id gladly jump at an opportunity to dump windows if Linux became somewhat more viable for games.

whitefang19881001d ago (Edited 1001d ago )

@ slimey it's funny because I'm the exact opposite, I live in the UK but everyone I know is getting the x1 we all got xbox original and after that mainly stayed on Xbox. I've owned all PlayStation's and plan to own the ps4 just my multiplat console has to be Xbox because I'm so use to the control, all my friends who I enjoy playing with are staying on x1 and all my multiplats (achievements and saves exc.) Have been on x360. I think both consoles will be good though hurry up November!

NukaCola1001d ago

It sucks but coming from a guy like Lalannana, I find it ridiculous you would jump on this when every single thing on Xbox One Live is blocked behind a paywall.

Evil_Abed1001d ago

Really? MP3 playback is behind a pay wall on Xbox one? Show me.

MTEC81001d ago

The DNLA and MP3 situation is pure money grabbing bs on Sony's behalf. Purely to push it's Music Unlimited service, hope a update will address this sooner rather then later for this.

No, I will not be cancelling my pre-order because of it. I only really care about background MP3 for racers, but this has dampened my excitement a bit. Sony has been riding the positive pr train thus far, get back on it Sony and fix this damn it.

Magicite1001d ago

in my country (Latvia) there are hardly anyone whos getting X1 and not just cos its not supported at launch, but because most people dont care about all those cable box services and kinect features

ALLWRONG1001d ago

"Sony is a corporation after all and is in it for the money" According to PS fanboys here Sony is in it for the gamers. Or is that only the case in MS news?

Muadiib1001d ago

Unless you have 60 million friends you're opinion is irrelevant.

scott1821001d ago

Well, playing games at a good resolution is good for me. I know other features will be added in firmware and Sony has the best game companies imo...

Pintheshadows1001d ago

Whilst I agree that lack of DLNA and MP3 support sucks massively and I won't touch Music Unlimited as from a Thrash standpoint it is worse than awful, neither of those things are leading selling points for a GAMES console.

Frankly it seems like the usual suspects are bringing them up to really grasp at straws.

MysticStrummer1001d ago (Edited 1001d ago )

"I honestly don't know anyone IRL whos getting an XB1"

Same here (Texas). Every one of my gaming friends bought a 360, actually multiple 360s because of RRoD, but none want an XB1. They all switched to PS3 years ago and are happy with PS and PSN.

@Lala - Interesting that a MS fan like you would make a comment like that, since XB1 has so many features behind a paywall.

P0werVR1001d ago (Edited 1001d ago )

I don't see why this is a big deal. It's a corporation, it's all about profits. It's just other corporations know how to run a business.

Sony loosing money is nothing new. We've known this all along. So for them to go down the route of profitability is a GOOD thing. If not, you won't see another playstation. It's funny how these Sony fanboys claim they're only in it for the gamers...GTFO!

Sony gained a significant ground in the gaming industry because it was the ONLY major corporation during that time that was in the industry. But once the "big boy" Microsoft came into it, well the rest is what it is currently.

EDIT:

Also, this will make or break the playstation. Microsoft can duke it out, they have resources to last it out. Sony however is on the verge of the down side.

...another Sega?!

andygee19871001d ago

same with all my friends in uk,all jumping ship from 360 to ps4

FamilyGuy1001d ago (Edited 1001d ago )

The biggest issue is that the PS3 already has these features and MANY of us LOVE the PS3 for having these features. The PS4 was naturally expected to have them too but it seems Sony is trying to push more apps. It'd be nice to know if other music apps will work in the background but they only mentioned Music Unlimited in their faq. That lead many to think they aren't supporting MP3s for a greedy reason, which may very well be the case. If they allow TuneIn to work I'd be happy to listen to that free radio app but no free alternative was mentioned.

I'm personally not cancelling my pre-order over these issues but it IS a big deal to me. The media streaming aspect far more than mp3 playback. I'll just have to switch to my PS3 when I want to watch my digital content.
The thought that I could wait did cross my mind though, DriveClub was a big reason to get a PS4 for me and it got delayed. There are other good looking games coming and I might just use the time to play FF14 Arr on PS4 so I'd much rather keep my pre-order than struggling to find a PS4 once games that I REALLY want come out like DriveClub and Infamous SS.

Jumping ship to the X1 was never a consideration either, they aren't supporting media severs at launch and I have no interest in any of their games.

360ICE1001d ago (Edited 1001d ago )

@decrypt.
Ah, yes. The PC. The cheap alternative to consoles that is not backed by corporations. I'm sorry, what?

TricksterArrow1001d ago (Edited 1001d ago )

Didn't care when my Atari, Amiga, SNES, Master System, Mega Drive (Genesis), Nintendo 64 and Game Cube couldn't play MP3, will certainly not care now.

Sorry, I can see how this is a problem to some, but particularly for me, who am ONLY interested on a GAMING device for GAMING, this is no problem whatsoever. Anything else that the machine brings aside from gaming is a plus, sure, and I welcome it, but I won't make it a deal or deal breaker out of extra stuff. Just give me the games and I'm set.

shinrock1001d ago

ur friends with the whole world? wow ur popular.

Guitardr851001d ago

Lol since when did it become bad for companies to make money off of their products...Isn't that the whole point of a business lol?

MrTimesplitters1001d ago

OMG PS4 SUCKS AND WILL BE A FAILURE

WELCO
METOT
HENEX
TLEVEL

SEGA!

MrTimesplitters1001d ago

OMG THE PS4 WILL FAIL HAHAHAHAH DONT CRY SONY FANBOYS.

WELCO
METOT
HENEX
TLEVEL

SEGA!!!!

Anarki1001d ago

I know 1 person and he's a die hard Xbox Fanboy. Everyother Xbox fan I know has slated the Xbox because of what happened when they announced it.

When the price goes down, I'll eventually cave, just to have the best of both worlds but for now I'll stick to my PS4.

rainslacker1001d ago

@hellsvacancy

The Kronos Quartet is available on Music Unlimited. The label they release music under is owned by Warner Music Group, which is a partner in the Music Unlimited program. They have several albums available and you can look it up by going to

https://music.sonyentertain...

That particular song is available from TKQ and Sigur Ross btw.

Sony has an impeccable classics selection overall both on Music unlimited and in physical CD format. They even have a separate label they use for their classical music offerings. If you're into that, then I don't think Music Unlimited would be that bad for you if you want a service such as this.

Nowadays, almost all record labels work together to provide their music to as many people as possible.

I understand not wanting to have to sign up for a service to listen to music you may already own, but before you go off on these rants you've been going on since yesterday, do a Google search.

I'm sure MP3 and DLNA support will be added in the future. For all we know, the playback software just isn't ready yet, similar to the way the DVD/Blu-Ray isn't installed day one without an update.

TheDev1001d ago (Edited 1001d ago )

30+ message thread about something that was confirmed to be put back in the 2nd PS4 patch.

http://n4g.com/news/1384779...

It's a few articles down on this very website folks. I know, I know... those BIG article thumbnails are so attractive, the rest just doesn't matter. ;)

ChrisW1000d ago

Sony made about well over $500 million profit with the PS3... yet it's a small drop in the bucket.

+ Show (31) more repliesLast reply 1000d ago
Sayai jin1001d ago

LOL...The disagree for stating the obvious. Other than the Wii U, what console by the big 3 have not sold well in the last 7-8 yrs? ...Nintys Wii, the PS3, and 360 all did extremely well so why wouldn't the PS4 and XB1 sell. They'll both be selling as many units as they can produce.

decrypt1001d ago (Edited 1001d ago )

Economy isnt the same. More than 50million Americans are on Food stamps, count more than 10million on disability, the jobless participation rate is at an all time high, real unemployment in the US might be as high as 24%. Most widely generated Jobs in US today are low paying Mcdonald or barmaid jobs. Europe is pretty much in a simular situation.

Thus i dont see the next gen of consoles doing as well as the last gen did.

Hutch23551001d ago

Dont' worry decrypt, In America, land of buy now pay later, people on those programs always seem to find a way to purchase Iphones and big screen tv's. So they will find a way to get these systems too. My cut back on a pack of cigarettes and a 6 pack of beer each night and they will figure it out.

Sayai jin1001d ago (Edited 1001d ago )

The economy is not doing well for sure. So they may not sell as well, but they will sell enough for each company to be very pleased. Also, even though economies are bad...retail sales are doing well...to even say some are seeing record profit. The holidays are always huge!

decrypt1001d ago (Edited 1001d ago )

@sayai jin

What retail are you on about?

Check walmart sales they are dipping, same goes for some of the other big retailers. Retail is certainly not doing well.

Infact Americans are today more in credit card debt than ever.

For more details youtube economists like Peter schiff to get an idea on the economy. US eco is a disaster. Its the mainstream media that doesnt want Americans to know this. There is no recovery. Infact we might be on the edge of another crash which will make 2008 look like a walk in the park.

@hutch2355

The american dream is near its end, for the last 100 years the american monetary system has been hijacked by a cartel of private central banks. The federal reserve they call it, nothing federal about it. Since 2008 they have printed the USD into oblivion and the pace is accelerating getting goods on the back of a USD is a privilege Americans about to lose. Then it will be a world of hyperinflation where no one will be able to afford anything. The time isnt far. Do a bit of research.

1OddWorld1001d ago

@decrypt
50 million lazy bastards the government welfare program has spawned. Welfare broke up the family by only giving assistance if the father was not in the home creating single parent homes and several generations of kids who see welfare as a way of life. Regulate the program, drug test's, required schooling and limit it's use by making it a 2 year program. In two years a person who has no job should easily be able to train for a certification or an associates degree. I hate both political party's bunch of morons cant figure out how to fix our increasing debt and keep de-funding school programs and increasing entitlements. Idiots

Tell me the number of truly disabled people cause it's no where near 10 million. Fat is not a disability, Dumb is not a disability. Go to Walmart and see these bulbous fck's driving those handicap carts pisses me off. Get up and walk you fat lazy fck or die.

I am way off topic.

Theyellowflash301001d ago

Maybe cause the Xbox 360 launched at $299 and $399 and the Xbox One is launching at $499 in a bad economy.

I can't believe how many people think the Xbox One is just going set sales records with that price tag.

+ Show (3) more repliesLast reply 1001d ago
Volkama1001d ago

It's selling at a loss though isn't it? So it isn't so much a question of the console selling well, it's more a question of the games and services selling.

The early adopters are core gamers and will probably buy up playstation plus in a heartbeat. Will the wider audience be interested? Subscriptions to anything can be a hard sell, Microsoft and Sony are both going for it though.

TopDudeMan1001d ago

Well, logically since the announcement of the PS4 people probably stopped buying PS3s. So this'll be them claiming back the revenue of a years worth of PS3 sales since people were likely waiting for the PS4 to release.

Anon19741001d ago (Edited 1001d ago )

As much as I expect the PS4 to sell well, again..another article overstates the importance of one device that Sony sells. Revenue generated from their games division is relatively small when compared to Sony as a whole. The entire division could cease to exist and shareholders probably wouldn't blink. Same thing goes for Microsoft's games division. Not that they're not generating a whole pile of money, but when compared to the entire company it's easy to see why most financial analysts don't even bother mentioning games when discussing the larger picture. Sony needs to turn around their TV division before they'll stop the bleeding. It's was getting better but this was disappointing news all around.

Also, it's funny to see Eurogamer throw up Microsoft figures for comparison, as if Sony and Microsoft were even remotely in the same business overall. Hell, why not through Toyota and Disney in there too.

And learn to read, Eurogamer. There were 2 million PS3's sold, not PS3/PS2 combined. Sony dropped the PS2 numbers from that figure last quarter. Right on the slide, at the bottom "PS2 is not included in Q1, Q2 FY13 and FY13 FCT"

I really think that the PS3 has a shot at outselling the Wii when this is all said and done. Wii numbers aren't going anywhere as the console is no longer in production, but the PS3 will continue to be supported for the next couple of years at least. It's very possible it could break 100 million before this is all over, and then it's only a couple of million more to take the Wii's crown this gen.

http://www.sony.net/SonyInf...

FunkMacNasty1001d ago

Ps4 will definitely sell well at launch!!

I mean, I can't even pre-order one at any brick and mortar store in the US right now! So much for me getting one at launch :-( And, as a matter of fact, the demand seems so high, that I'm afraid I won't be able to get my hands on one until the summer :-(

Belking1001d ago

Dude that really doesn't mean much when you aren't making money on those sales. Its gonna take years for them to see any profits from the hardware.

Anon19741001d ago

According to Sony, the losses incurred from selling the PS4 hardware at a loss will be made up with subscription fees from PSN+ out of the gate.

And let's be realistic here. We already know the PS4 isn't nearly as expensive to make compared to the PS3 when it launched. The slight losses on hardware being predicted aren't going to last.

rainslacker1001d ago (Edited 1001d ago )

And they'll get back profits from each game sold through licensing fees. I'd imagine most people are going to buy 2-3 games when purchasing a new system, and last I saw the licensing fees for most games are around $10 per copy sold.

1st party games make them even more money, and currently KZ:SF has really high pre-order numbers. I saw a stack of 50 or so of them sitting on the counter at GameStop tonight, so GS must expect it to sell since the store I go to hardly ever gets enough copies to meet demands on any game not COD or AC. To Sony, those 50 copies are already sold, regardless of if GS sells them or not. Now multiply 50 x 6,600 stores you get 330K copies sold to GameStop alone. Include Amazon, Best Buy, etc in those numbers, and they have already made their money back.

Then there is all the peripherals they sell at a profit day one. Controllers, cameras, possibly Move, all those little extras that people buy because of launch hype. All those overpriced Sony branded products are nothing but huge markup. My local GS has about 30 DS4's on the sales floor right now, and quite a few GS people have posted saying their stores have about 50 or so in stock. Again, those are sold units to Sony, and I'm sure those have a decent mark up on them at $60 a pop.

PS+ is another profit for them.

So yeah, I don't see it taking years for them to be making back that money. Last report I saw said they were losing about $60 per console sold, and it was only an estimate.

You don't include R&D costs into profit of a sold unit. Those are written off, and I believe they wrote those off that quarter where they sold that building you used to mention all the time.

fear881001d ago

I think its time for sony to seriously consider spinning off the entertainment division. I feel as though the movies and music division would be better as its own separate entity. Sony is doing exceptionally well in the mobile market after severing ties with erricson and the playstation division is managed properly and is about to turn a profit there. But the movie/music division in particular needs to go. Its been a drag on Sony for a long time and if they spin the division off, it will bring in more money for Sony.

mediate-this1001d ago (Edited 1001d ago )

Yes it will sell well. But sell well enough to keep the whole of sony afloat is another question. Sony needs to stick with what makes them money, and sell off or produce less what hemmorrages them money.

+ Show (6) more repliesLast reply 1000d ago
come_bom1001d ago

With all the help they are getting from Microsoft, PS4 is going to be a success with out a doubt.

MynextGen1001d ago

Geez you are in denial XboxOne has money Ps4 has peanuts lol

hollabox1001d ago

MS could buy both Nintendo and Sony if they wanted to. I'm surprise Apple has not made an attempt to buy either or since I've rumors about them getting back into the gaming business.

ZBlacktt1001d ago

Yet, biggest fail rate console in history. Copy Blu-ray player 7 years later, never won a overall Game of the Year exclusive, been outsold by Playstation every Gen, being outsold already in pre orders 2 to 1, 1080 vs 720p, lessor powerful console. Forced to change everything about the X1 policies by Sony not forcing them on gamers.

The facts could go on for days. Hope you are not in denial.

swerve1211001d ago

I think ZBlacktt here must of forgotten that MS own part of Blu Ray via the Codecs.

phoenix_dusk1001d ago

It has almost no flaws as a console system.

phoenix_dusk1001d ago

I see the Xbone astroturfers are downvoting the truth. Living in denial is not a good idea. I guess living in 720p multiplats and their endless paywall of services is such a bitter-sweet thing to do just to deal with reality. LOL

majiebeast1001d ago (Edited 1001d ago )

Who knows at this point.

smokeyjoekenobi1001d ago

How can any console-only gamer play the superior technology card, seriously?

come_bom1001d ago

Nop. It has flaws. It just doesn't have as much flaws as the competition.

Hicken1001d ago

Roughly 130 of them, give or take.

Where's the flaw?

majiebeast1001d ago

Damn the pictures division really made some bombas this quarter. Who ever greenlit After Earth is probably looking for a new job right now.

phoenix_dusk1001d ago

Yeah, I think that's where mostly Sony got all their losses. The gaming division is doing so well and I guess Sony pictures kinda went to sleep after Skyfall.

Evil_Abed1001d ago

The gaming division didn't make any money, in fact it lost 8 million
Yeah, it is doing sooo well -___-