Michael Pachter discusses PlayStation Plus and more.
Why do people listen to this fool? 9 times out of 10, his "predictions" are completely off. He provides nothing of value, unless you want a good laugh now and then.
Laughing is the key to happiness... So he provides the essence for a happy life. Dumdidumdidum
Laughing because something is funny? Yes, valuable, laughing because the situation is terrible/bad/frustrating, not so great ;) My biggest issue with Pachter is his "predictions" can affect companies' stocks, and with his track record of being wrong most of the time, this concerns me...
Worse part of this, this guy actually makes a lot of money saying this kind of stuff...
"How Does PlayStation Plus Make Money?" Step 1) Charge £40 per year for PS plus. Step 2) People buy it. Step 3) PROFIT!
@Lukas How does Michael Pachter make money? Step 1)Have an opinion - the more controversial the better. Step 2)Ummm he's never had need for a step 2. Step 3)PROFIT!
The funny thing here is pachter think you only get 10 games a year. it's closer to 10 a month, what a complete idiot. How does he get paid to talk about the gaming industry?
Pachter doesn't make money off the accuracy of his predictions. He makes money off the controversy of his predictions. In other words, he doesn't have to be right. He only has to make people talk about it.
@Walterwjr Im pretty sure he meant 10 big games. Anyways i dont see how anything he said this time on pach attack is wrong, unless all of you above actually believe amd is going bankrupt within 7 years
One_Eyed_Wizard I 100% agree!
How Does PlayStation Plus Make Money? Make everyone pay for it. The end.
@Lukas_Japonicus: forgot the part where they have to buy or pay for the rights for "free" games.
Because he's quite engaging and he knows a lot of people in the industry. He only suggests what may happen based off current trends, past trends and word of mouth. He isn't an oracle but oddly enough, he is often right about many things, however most articles are only posted when he is wrong...never when he is right.
His predictions of the future are usually wrong. His 'predictions' of the current industry is right. But half of n4g users can do this. His explanation of why he was wrong is superb though. This is where ppl fall for him. He himself said he doesn't need to be right. So he's usually not right. He does what he does becuz.... "It's a profit deal!" (Ca'ching! Money drops over the background)
I remember a few years back where he was saying how gaming PCs weren't nowhere near as powerful as the PS3. The guy's a joke.
Got an actual quote for that? It's a well known fact that Cell processor was an absolute animal for its time and 'power' wise he was correct. A clustered set of PS3s would demolish anything that AMD or Intel had produced for the consumer market around that time.
When the ps3 came out it was true dumb fuck
It was on an episode of the bonus round on gametrailers during the 09-10 I believe. Geoff Keighley said how you needed a 1500$ PC to compete with current Gen consoles then Pacther added how that still wouldn't as powerful as a PS3. I'm too lazy to hunt down the exact quote, but maybe someone else can shed a light on that. @Mikethejew How about you learn how to construct a proper sentence?
Grammar police for one missing punctuation?
I don't what to tell you. He and 17 very intelligent users seemed to jump to the conclusion that when I said "a few years back", it automatically meant 2007. Not really surprised though as this is N4G after all.
Humans like baboons.
His predictions are right more often than not. But like with everything on the internet, only his wrong statements are brought to the top of the pile and hammered to death by the legion of know-it-alls in the community.
I particularly like all the bandwagon haters who dont even watch the episode, but just write "Why do people even listen to this guy"
I watch his show regularly and wonder why people think he's always wrong. Of course he isn't always right, nature of predictions. Does anyone listen to sports radio? They are wrong 80% of the time and will kill anyone with a different opinion.
Wait when I first read this, I was like are you kidding me... "How Does PlayStation Plus Make Money?" -They charge for it.. 49.99 yearly .____........___... .____||......||.......|___|| ||.........___||............ ||
Really who disagrees with this, can you please tell me where Playstation Plus is free.. because I would like to sign up there.. Instead of paying... LoL
They probably don't make that much money from it with the amount of games they give away, but the whole point of it is that takes people like me away from an Xbox 360 to a ps4. Lets be honest its worth more than the price you pay for it by quite a margin.
you "read" the video?
So do you think Sony and Microsoft make 400 and 500 dollars for every system sold? It's been it straight forward like that. Sony doesn't just choose other developers games and offer them for free. The question, "How does PS+ make money," doesn't insinuate that it does not make money. It's asking how do the profits work, as in profit margins from those $50 subs after the deals behind the scenes have been put together.
Because hes a whole lot fucking smarter than you. Im in the industry and believe me all developers and publishers listen to him. Because his job is to tell investors if they will make money investing in our company, not argue with fanboy tards on n4g and gaf.
What industry is that? The "I'm gonna fake it til I make it, talk down to people, make myself feel superior" industry?
Pachter has become a tabloid junkie. He thrives off of the limelight and will say anything controversial to get the press. Just watch his videos and you will see how arrogant and full of himself he is.
I'd say 9/10 he predicts stuff that is PAINFULLY obvious, or he's wrong lol
Remember when Microsoft doubled the price of Xbox Live? Did you play Grand Theft Auto V when it came out in 2010? Were you pleased that Kinect launched at $50? Are you happy that the console wars have finally ended? If none of that sounds familiar, it’s because these are just a few of the widely off-the-mark predictions of video game industry analyst Michael Pachter. Pachter is wrong a lot. He predicted that we were in the “last generation of consoles,” before the Wii U, PS4, and Xbox One were announced. He predicted Kinect was unlikely to sell for more than $80. He promised Grand Theft Auto V would arrive by 2010, then by 2011, then by 2012.
How does valve make money? What is wrong with this guy? He has too much time on his hands.
but go to his articles with negative xbox stuff, and the same mutha f***ers in here bashing him, will be praising him there.smh sigh
Lol Patcher the clown.
Says the guy wearing sunglasses inside.
My question is how does this guy still have a job?
as long as you keep click in his link seriously, this guy is nothing but a clickbait, that's why he still has his job
Thank god for adblocks then.
I don't think he gets paid for this. Gametrailers does a show with him every week and he agrees to answer questions. His real job is to analyze the industry and give advice when and where to invest. I don't know why people get on him so much, he is usually pretty accurate and when he does make crazy, outlandish predictions he prefaces them by saying something to the effect of "this won't happen, but [insert crazy prediction]. People that make these articles take what he says out of context and tone all the time to make him look like an idiot. Actually watch the videos and you will see.
What a dumb article, PS Plus makes money because it's a PAID subscription service. They make more money from subscriptions than they pay the developers to put their games on the IGC.
I think what the article or the question is trying to say is with the amount of free games sony gives, how is it that they are making a profit out of it?
I explained in my above comment how they are making a profit out of it, seems like common sense to me.
All I know is that I am profiting from PS+ every month, so as long as Sony can keep it up I am happy. I just wished I didnt miss out on it for so long. Thank God PS4 forced me to get it. I would have never known how awesome it is.
you do know that his show is a Q + A right? so hes answering questions. He also does not make the headline for gametrailers nor N4G. This isn't an article at all. Not to mention that the question was asking for more details on how exactly the payments worked for the publishers whos games were on the service. Its also 1/3 of the video.
No, you didn't explain it. You assume that's how it happens, but you have no idea what the numbers are, and you have no idea how it's handled from game to game. That's what's being asked and discussed, specifically how the program works. It's not a simple "do they make money.?"
I know that Pachter isn't the most loved guy around here but at least watch the video. Someone ask him a question about how PS+ make money with the free game program and he provided a logical answer. As for his job, it's not about giving is opinion about the video games industry but about being a analyst for investor. and at that, it seem he's quite competent.
Answer, which was released and talked about multiple times(try Googleh), brings nothing new to the table along with his legendary legacy of being doubtfully precise.
I guess they should ask people to stop asking questions on the show, if it can in anyway be found on google, and of course what you find on google is always fact..........
Of course, because we all know that people who live by packaging and re-selling in 90% incorrect information are the biggest gifts of humanity we should cherish that 10% of the time they are right. This just makes my education hurt.
all I could was face palm hearing him trying to explain how playstation plus works. add on to that pachter knows if somebody grammar is incorrect in their question but doesn't know how playstation works wtf. the rest of the video was pretty good and interesting.
Pachter strikes again! All kidding aside, he gave a pretty basic answer but it's a little more complicated than that. First of all, PS+ has different subscriptions. Not every PS+ user is paying the same amount. Some are paying more than others, and others are paying less. Obviously the 49.99 one is the best deal in the long term, however the 17.99 presents a decent term at a less upfront cost. The 9.99 sub is for users that only want certain games so their usage pattern is a bit sporadic compared to the other two. Keeping this in mind, the last two type of users end up paying more in the long run than the one that paid more up front. Even if they don't, the sheer amount of people means that while one guy got PS+ for one month, there are 11 other people that did the same, which makes them more money over the course of the year (12*9.99 vs 49.99). The options in subs open up the service to people who otherwise wouldn't get it. Beyond the subscription costs, then you factor in Pachter's answer regarding the differences in usage patterns for each subscriber. Some people will take every game, some people won't. You might have a game that got, lets say, 100k downloads, but the subscriber base is 1 million (these are just examples don't shoot me). Sony only pays for the downloads, so there is excess funds from 900,000 people that did not download the game. In addition to that, publishers have a huge incentive for putting a game onto PS+. Yes, we've had some AMAZING games on PS+ such as the latest TR, Bioshock Infinite, Metro Last Light, Borderlands 2, etc. Keep in mind that while we got those games for free, each game (especially BL2) has substantial DLC and that DLC generates extra profit for the publisher. In the end, we all win. Pubs get paid, Sony gets paid and we get a lot of games for cheap. You're welcome Microsoft. Send me a free X1 while you're at it. I just saved your GwG service.
Pachter gets a lot of hate, from a lot of people. Granted, this guy isnt ALWAYS right. Is anyone EVER always right about anything? I've seen meteorologists predict the weather and get it wrong. Doesnt mean the weatherman is stupid. Or sucks at his job. Consider this: Where do you work? Some of you might work at Wal-Mart, restaurants like McDonald's or Burger King, some of you might be auto mechanics, telemarketers, or work at a gas station. Some of you might not even be working at all...or still in school. That being said, what do YOU know about THIS profession or industry, to qualify you as experts in the field? THIS is Pachter's job. He is an analyst for investors, like petebloodyonion above me said. He get's paid to "know his shit" and analyze. I'd say he's more qualified to tell someone how PlayStation Plus works...than ANY of us, here. You people treat this guy like he's Nostradamus. LOL. Then lash out at him, when he's wrong. Well, even Nostradamus was wrong sometimes, too. So what? Stop lookin for a cross to burn, everytime this guy makes a miscalculation. Let the man do his job and get off his nuts....
You know, as consumers and people who are dedicated enough to come to a site like this on a daily basis to get the latest gaming news, I'd say many of us know more than you give us credit for. Many folks here are part of the gaming industry(though some make the claim with dubious credibility), often as indie developers or retailers. Some of us are economics majors, meaning we know something about various markets and how different influences can change their direction. Some of us just spend a good deal of time soaking up every bit of information we can find on whatever subjects we come across. The problem we generally have with Pachter is that many of the predictions he makes are so OBVIOUSLY wrong or, alternately, so OBVIOUSLY right that it's hard to figure anybody missing it. People give him flak because there have been far too many occasions where we- who are not qualified to know so, according to you- can tell he's going to be off on a prediction, and even give an estimate of how much. Tell you this: I wouldn't want to risk my money with an investor who could be outdone by a video game forum full of armchair analysts on a fairly regular basis. And maybe it's just in the gaming industry, while other predictions are more frequently right. Maybe when it comes to oil futures or feather bed futures, he's on the money 90% of the time. Then, in those cases, he's perfectly fine to listen to. But as it pertains to the gaming industry, he's not very good; with respect to that- and given that he should have far more pertinent information at his fingertips than we should- he should probably stop predicting. Also, it's kinda our job- or that of investors, and who knows? maybe someone in here is affected by his analyses- to tell people when they do THEIR job wrong. Or should we just shut up and watch the train wreck happen?
Easy, they promise a bunch of "free" games but forget to mention that in order to keep said games you need to keep paying for them So because a lot of people signed up under false pretenses they need to keep paying because instead of buying the games they relied on plus to provide them and would have a small library without them. For Ps4 its basically xbl gold except not all games require plus to be online but a lot do. Plus seems more worth the money on the Ps4 since you get access to online plus a rentable game or two on the side. They just need to build the "free" games on the Ps4 fast since there isn't much which is understandable at the start of a new gen
"Easy, they promise a bunch of "free" games but forget to mention that in order to keep said games you need to keep paying for them So because a lot of people signed up under false pretenses" Now that is bad... Or it would be if that's where remotely true, not only can you read it on PSN+ cards, or from the PSN, but every time you download a game through plus you get a notification telling you that you only have access to said game while you're a paying member.
I've never seen it on the cards and on psn it's written at the very bottom of the small legal stuff that most people never read. It should be in bold and on top. They should just say it's renting games instead of FREE games, FREE implies that it is yours for no cost. If I give a friend a copy of a game I don't play that would be a FREE game, if we end up not being friends I don't demand the game back because I gave it to him for FREE, not on a loan.
How does Patcher make money? Oh yeah... By idiots who keep clicking on these links, Stop paying him guys!
This isn't at all how he makes money. All this goes straight to gametrailers so I'd say you are the idiot.
They get the ad-revenue, Patcher gets part of that.
Going out on a limb here... but I'm guessing they make money from all those annual subscriptions and online sales. People forget that Sony sells more than games on PSN.
Wow that was a horrible answer, he normally at least knows what he talking about. This time his "guess" was more of a shot in the dark. He should have just said "I have no idea" because it was clear he didn't. It's more likely Sony dedicates a percentage of Plus revenues to purchasing game deals. I doubt they just give $10 a download. It's probably a lot more complex by taking into account a games monthly sales at the time, the games price and giving companies the amount or close to the amount of profit they would receive for a period the game is on Plus. It's like an advance on projected sales on top of any other retail/non Plus sales they'll still get. Sony's not going to pay for every download, that could be disastrous. A lot of people download everything just because it's free even if they don't plan on playing the game. OR download just to "try" the game, hate it and never play again. More importantly, The number of downloads would far exceed any monthly sales the game would have if it weren't on plus. Devs would be getting far more "sales" than they ever would were they not on Plus. Sony's not going to pay for false sales, they probably pay for the real world sales the game has at the time which is always low by the time it reaches Plus. They're not paying $20 million for Bioshock when it's only selling 20,000 a month at the time. That's ridiculous. A lot of the games on Plus are down to $30-$40 by the time they arrive on the service and selling only 25000-50000 a month if that. Sony probably just gives them their monthly sales profits which isn't much considering the game's price is already discounted in stores and peak sales long over. So If Plus has 10 million subscribers at average an $50 a subscription (in Canada it's $50), and brings in revenues of $500,000,000 per year the budget for free games is maybe 1 million a month which is nothing to them. If they're paying devs $250,000-$500,000 for a game like Tomb Raider or Bioshock, and indies a bit less of course (due their lower prices and generally smaller volume of sales). Basically Sony pays the devs the amount of profit they would have made from the game sales for the duration the game is on Plus, which by the time the game is on Plus isn't THAT much. Note that from a $40 game sale most of it doesn't go the pub/dev, so Sony's not buying a $40 game, they're buying the devs game profit which is probably closer to 25% of the price. That my guess, and I think it's a hell of a lot better than Patcher's.
I think in addition, some publishers use PS+ as a marketing tool. In these case it means that Sony may not even have to pay. Borderlands, for example, had Borderlands 2 coming out a couple months after they offered it. It allowed people to try the first, thus garnering new fans who were more likely to buy the 2nd game. Then there's games that have a lot of DLC attached. By the time they're released, their retail run has dried up, and likely their DLC run, but making the game essentially F2P means that they get the possible revenue from DLC purchases. This goes for AAA games. For indie titles, the price could be low just for discovery. How many PS4 owners now follow Housemarque due to getting Resogun for free? Although in that case it was a Sony published game, so while they didn't make money off it, they didn't really lose it either, and they now have a strong dev that people know about. I think a lot of the smaller PSP/PSN games they release tend to be 1st party, however I do know that Square has offered a few games on there. They may have had to pay for those, but I doubt it's in the tune of hundreds of thousands, and certainly not on a per download basis. Probably just a flat amount regardless of downloads. Overall it's a great model that seems to benefit all those involved.
Totally agree. Housemarque is a perfect example. I didn't even know who they were previously now I eagerly aniticpate their next release. Same with Red Barrels Studio, Outlast was probably the scariest game I've ever played and one of the best games I've played in a while. In my mind, PS4 already has better exclusives than xone IMO for my gaming tastes. That is if we don't count PC of course.
he's talking out of his bottom again, plus gives you a shed load of games today even more so if you have the 3 Sony console's I'm snowed in with titles having P.S.3/4 add a vita on top of that and you even more snowed in, how can that not be a good thing
How does PS+ make money? By ripping people off making them pay for online multiplayer, and offering them bottom of the bargain bin games which have been discounted to hell that everyone and their momma already has played