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Sony's New CEO Talks PlayStation Plus, PSN, Recurring Revenues, and PS4 Production Costs Reduction

Sony's newly appointed CEO Kenichiro Yoshida talked about PlayStation Plus and PSN sales, and mentioned that PS4 production costs have been driven down.

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The_KELRaTH194d ago

It's the subscription, overpriced digital only purchase downloadable add-on content, in-game currency, loot boxes etc that has had me buying less and less. I cannot see myself buying the next generation console if it continues in a similar path.

Brian7655492194d ago

Looks like lots of money is being made. Almost half the people subscribed so I don't see the trend dying.

193d ago
194d ago Replies(6)
yomfweeee194d ago

Everything you listed is completely optional except the Plus if you want to do multi-player.

EatCrow193d ago

Just like all services on all platforms

NapalmSanctuary193d ago

Warframe Multiplayer works fine without PS+.

kevnb194d ago

If you are patient you can avoid most of this crap by not getting games at release date.

Mr_Writer85193d ago (Edited 193d ago )

@Kevnb

Unless it's a Nintendo game, it seems Nintendo don't know the meaning of the word sale when it comes to digital games they have made XD

But yes, both PSn and Live are always having sales you just need wait.

The last game I bought at launch was Overwatch. But I've over 200 hours on that game and it's only real multiplayer shooter, so I knew paying full whack would be worth it.

kevnb193d ago

thats true, but most Nintendo games are usually worth it imo.

MoonConquistador193d ago

Very true kevnb, how many of these (first world) problems can we actually side step ourselves by exercising some thought and a bit of control.

Nah, it's a lot easier to point the finger at a multinational corporation.

Retroman193d ago (Edited 193d ago )

Same way i feel if ps5 full of digital only purchase , in-game currency , loot boxes . can't see myself buying ps5 in the future .

bought ps3 again without all that nonsense

Mr_Writer85193d ago (Edited 193d ago )

@GT67

I think we're a long way from that. Retailers make little money from selling hardware.

So convincing retailers to stock an item they will make little profit on is a big ask, more so when they have no games to sell (which make them money).

Also disc sales are a huge market, publishers won't want to risk pissing that market off.

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XiNatsuDragnel194d ago

Don't do the recurring revenue or I ain't buying any console

Abriael194d ago (Edited 194d ago )

They already are. PlayStation Plus, DLCs, Microtransactions, Expansions, PlayStation Now... they're all recurring revenues, and Sony has been doing them all. And I can guarantee they're not stopping. It made them almost 3 billion dollars in a quarter.

So I guess you're not buying any console.

XiNatsuDragnel194d ago

Pretty much been reading more lately so that might become my new hobby

UCForce194d ago

Look, I don’t mind with digital. I just hope they don’t go too far with it.

DialgaMarine194d ago (Edited 194d ago )

Yeah, but they’re not nearly as bad about it as some companies, and they’re still putting a huge emphasis on delivering games that don’t include any of those things. The worst Sony has done on the MT front is cosmetic items. PS+ is the reason why PSN is a much stronger network than it was last gen. If I’m being honest, I actually like DLC things packs, especially when they are worthwhile add-ones to already complete games, like Frozen Wilds or Left Behind. If Sony continues to use these things in proper moderation, while still delivering their top grade exclusive content, PS5 is going to be fine.

AspiringProGenji194d ago (Edited 194d ago )

Microtransactions and Exapnsions... please don’t you ever put these two in the same sentence. When it comes to DLCs and expansions, Sony has done very right (Frozen wilds, left behind, GT League, First light). I dislike the mts in Uncharted 4 but they are just a bunch of non intrusive cosmetics.

In my eyes Sony has been very moderate when it comes to monetization, and they still believe in the Single players. HoPefully they keep like this

kevnb194d ago (Edited 194d ago )

Not only that they build emulators for ps2 games but then charge you per game even if you already own it, using cfw ps4s have full bc for ps2 games.

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343_Guilty_Spark194d ago (Edited 194d ago )

You obviously aren’t paying attention. But tell us again about how many exclusives Sony has or how many plastic boxes they’ve sold while ignoring everything else.

xX-oldboy-Xx194d ago

The exclusives are the gravy, at least PS4 owners get gravy.

343_Guilty_Spark194d ago

PUBG - 4 million Plus users gravy

SEA OF THIEVES - top twitch streamed game gravy

My Alonestation is collecting dust

Rhythmattic193d ago

343_Guilty_Spark
You really are trying tooooooo hard...

Septic194d ago

"Earlier in the call, during his prepared remarks, Yoshida-san reiterated that PlayStation Plus had 31.5 million paid subscribers as of December 31st, and mentioned that between October and December 2017 sales on the PlayStation Network increased by a whopping 41% year-on-year and exceeded 300 billion yen ($2.73 billion) for the first time in the business’ history."

Daaayum- the future is digital ;)

UCForce194d ago

Just hope it isn’t goes too far.

gangsta_red194d ago

Interesting right...we have already heard that Sony will explore more avenues in the digital space with dlc and GaaS.

There is no denying that MAU/DAU is where the big profits for these companies are. And this is why we see such a push for this regardless of "internet speeds".

UCForce194d ago (Edited 194d ago )

Even Gaas is the future, will it be a perfect future ? That’s depend on how you think. But for me, i just hope that they don’t go too far with it. I can overthinking about the future. About the quote “Future is Black” ? It’s seem like technology make us stronger, but we ourselves grow weaker. How far we push digital gaming ? When it starting push us back ?

gangsta_red194d ago

@UCforce

We have nothing to fear about technology as it has also helped us move further in evolution. It is what separates us from the filthy animals that crawl on their bellies and eat uncooked raw meats. The Future is Black which means it's an unpainted canvas that can be filled with wonderments of lights and the ecstasy of imagination powered only by man's limits of his current knowledge.

UCForce193d ago (Edited 193d ago )

I’m maybe overthinking. Evole Technology is fine, but there will be consequences if they gone too far. If Digital is main future, you would know that the Hackers will a find a way to hijack it. I just don’t like a person who playing god power.

RememberThe357193d ago (Edited 193d ago )

This whole games as a service thing didn't do well for GTS. With the recent update it looks like they are moving away from the original model.

I agree though, nothing to hear from the future that we haven't had to deal with in the past.

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AspiringProGenji194d ago

Daaayum all that money to invest in games and their family of studios. Keep at it Sony! Don’t forget about physical and keep being moderate when it comes to services, and keep believing in the Single players 👍🏻

ImGumbyDammit194d ago (Edited 194d ago )

Unfortunately a lot of that profit from both SIE and their insurance division (guaranteed profit drivers for the company in past 4 years) goes to support several failing divisions. That is one of the reasons many investors want Sony to spin-off SIE completely so it can realize its own value and retain all it's own profits and not have them support the rest of the company. Sony as a whole is only worth about 62 billion, Nintendo 45 billion. Just think about that, Sony as a whole is only worth 20 billion more than Nintendo. Yet, Sony has at least three divisions that individually (chips, SIE, and investments/insurance) that on their own could be worth 20-40+ billion a piece easily. PS division if standing on it own could be as valuable as Nintendo but, it is devalued as whole because of so much dead weight in the company that still after all the restructuring has no profit or very little profit after very large, risky expenditures (e.g. film/TV, electronics). Same for the insurance division, which actually has been the biggest cash cow for Sony. Both, those on their own could be worth 30-40 billion a piece.

By the way spinning-off doesn't mean Sony would lose control. I just means that it would be 100% a separate company. Sony could retain the major ownership (say 60%) and the rest would be open to outsider investors. Any company would be not connected at the hip to Sony proper. All that money they make would stay with the company and allow them to build up SIE. But, as long as there are money needs elsewhere and Sony still is too stubborn to shed those failing divisions a great deal of that PS profit is be redirected elsewhere within the company.

AspiringProGenji194d ago

A lot of those profits go to Playstation. PS is its own LLC. The “sony is broke” comments became irrelevant after that

franwex194d ago

@imgumby
Right now PlayStation is making money, but sometimes it too has to be subsidized by another profitable department. Usually during the launching of a new console. If it was its own separate entity it wouldn’t be able to take some risks.
But yeah, good points. This is what a CEO and the chairmen have to consider. Lol.

Tru_Blu194d ago

Really it's just that their are a lot more PS4's this year then last. Of course the sales numbers are going to go up, more potential customers.

rainslacker194d ago (Edited 194d ago )

So long as they continue to offer physical, I'm fine with them expanding their digital revenues. The day they go all digital, is the day I probably won't buy any new games. Since that date is a ways off, and I'll likely be well into my 60's by then(41 now), it probably won't be that big of a deal to me. I'll still continue to buy physical for now, and say why I think it's better since digital consumer rights aren't advancing anywhere near how fact digital distribution is growing.

I think that one thing doesn't have to supplant the other. They coexist fine now, and there is no reason they can't continue to coexist outside of the industry itself forcing the conversion.

Aenea194d ago

I would be okay if they allow one to resell digital copies, lend them to friends and if you can still buy physical boxes with the code inside.

Not perfect, I still rather prefer a cart or disc inside the box, but physical now is also much cheaper to buy where I live and I like to see what I buy, have something to hold and look at, sniff it, open it like a little kid, display it, etc., etc.

Only downside then is that when the game can't be downloaded anymore and your hdd dies you can't play it anymore....

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DeadSilence194d ago

Those are insane numbers, no wonder everyone wants to to go Digital wow

moegooner88194d ago

For comparison, how much revenue did they generate on physical sales ? Seems over the top to try and paint the future to be one dimensional.

Brian7655492194d ago

Electronic Arts have shown the growth of digital. Its very convenient but I want to keep the option of physical.

DarXyde194d ago

I'm a relic of the old world. I just can't see myself going exclusively digital. If the next generation abandons physical media, I'm definitely out. I hate the idea of downloading all of my games. Choice matters and collector's editions are awesome. I'd rather the price of games get marked up $10 than lose physical media.

ImGumbyDammit194d ago (Edited 194d ago )

@DarXyde And where are you going? PC has long ago abandoned actual media. A greater percentage of users buy digital on PC and gladly do so without even batting an eye compared to the console market user. Are you just going give up on gaming completely then?

By the way, physical media will never disappear. This FUD happens when ever there is big change happening. However, it never really becomes the same doom and gloom reality as expected. Games will long be here on physical media. Maybe not every store will carry games on discs (maybe just digital codes) but,larger stores and online stores like Amazon will always give access long after the actual time that digital distribution (seemingly) takes over. Look at the music industry for an example They still release a lot of new music on records (still sell those licorice pizzas). True, they are more expensive than CDs (which they still release too) but, they still exist. The record is something that was supposed to have died with the advent of CD's arrival. However, records still exist even several decades after its supposed death at the hands CD's, which still exists too, even after the arrival to digital music services. Sure a lot of music stores closed or adjusted how they served customers but, the media still exists for those that want to have it.

rainslacker194d ago

A good portion of that revenue is through PS+ subs, and sadly, when digital revenues are reported more generally, they include things like subs, MT, DLC, etc in the mix, so it becomes very hard to see direct ratios of physical vs. digital sales. Physical sales of actual game software still greatly outweigh digital sales on consoles. PC is the opposite, although some physical still exists.

Omegasyde194d ago

I like borrowing games and buying used games and selling games...So there goes that.

DarXyde193d ago

Gumby,

Actually, my intention at that point is to go back in time. Most of my old consoles are with my folks, but they still work. Graphics have never been something I cared much for, so it's easy for me to go back to 8-bit through the years on fun factor alone. My backlog of unbeaten games extends to Super Nintendo and SEGA Genesis. I've got time.

While I'm somewhat doubtful we'll go 100% digital, it's something I'll prepare for anyway.

arkard193d ago

I like physical just for the fact that I get 20% off every new release from best buy. Makes buying games more affordable and I can sell them when I'm done. All digital just means I wait for more titles to be 20$ before buying.

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DialgaMarine194d ago

Well, with Gigabit internet speeds finally becoming more common, a digital future doesn’t seem nearly as bad as it did back in 2013. Obviously the telecommunications network in the US needs a lot more work, and hopefully NN is able to make a comeback, but progress is being made to where an all digital future could actually work.

Chaosdreams194d ago

The next generation of playstation will be interesting. However, if the current formula of Ps+, Dlc's, MT's, Expansions, and so forth continue to grow while the core of games start to increasingly in turn lower in value, I don't see myself being as active of a gamer. Sony's IP's are for the most part, respectful of the gamer, but the same can't be said for other studios/publishers (I don't need to point fingers).

We're lucky now in the sense we still get some fantastic titles that offer us more than our money's worth, but this is burdened by the fact there are already many IP's made by their respective studios who are all testing to see how much they can push the gamer and what they can slowly make us grow accustomed to.

For example, we accepted DLC almost right away because we hoped it would be done right, and in turn Season Passes. We dislike MT's but all it takes for those is a couple of high income individuals and voila, profit. As for PS+, I literally find myself only paying for the damn thing in order to gain access to online. Something I'll never get over or be fond of. It's a stupid barrier. Sure we get discounts/free games that we can enjoy if we continue our subscription - but when you think about it, that's just to further insure we keep paying. As a Canadian, they docked it up to a yearly fee of $69.99. It's nonsense.

I could go on but I'll end it on the note that if digital is ever going to be something I replace physical with, a notion I don't like for numerous reasons but do appreciate for certain benefits, then digital titles should be lower in price. There is literally not one single reason why we pay the same amount for digital as we do for physical, not one, and yet we do.

I love gaming. I respect Sony for doing more good than bad, but competition is key and if the majority ends up slowly growing accustomed to less than gamer friendly practices, a full fledged game will be a rarer sight.

rainslacker194d ago (Edited 194d ago )

The thing is, physical sales aren't on the decline due to the rise of digital distribution and added revenues through MT, DLC, subs, etc. While Digital revenue is likely to grow, it would take quite a large decrease in the physical market for a company to stop trying to provide for it. Overall, revenue in the gaming market is increasing YOY, and that's a great thing. Physical still has it's place, and it's not likely to go anywhere by as soon as next gen...and likely not even the gen after that.

Things are constantly changing as new trends appear, but it doesn't immediately replace the old. The timing to simply remove physical means that it'll stick around for quite some time, as there is a lot of work to do before it becomes sufficient enough to replace physical revenues. it doesn't cost much for the console maker to provide the ability to use physical media, and publishers still want as much revenue as possible. They aren't losing money through physical sales, they just make a bit more through digital, and don't have to worry about used game sales, so while they want to make more and have control, they will always want the revenue.

Xenophon_York193d ago (Edited 193d ago )

"...what they can slowly make us grow accustomed to." This is the front line of the war.

Xenophon_York193d ago

And, with as much respect as can be conveyed, anyone who down-votes Chaosdream's post is simply an ignorant, hotheaded casual-gamer with no respect for the passion of a devout gamer.