Let’s put Sony’s $100 million PS4 launch marketing budget in perspective

Sony only has to sell roughly 1.7 million PS4 games or about 286,000 PS4′s to cover their entire PS4 launch marketing budget.

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Pope_Kaz_Hirai_II3166d ago

That 100m will be easily made back from launch sales

bangshi3166d ago

Made back maybe - but they'd still be $100m down.

The console isn't free to make.

Nor does Sony receive 100% of the revenue from game sales.

This article is very wide of the mark to say that they only need to sell 284,000 games to make their money back.

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NeverEnding19893166d ago

PS4 price and marketing budget are unknown. Joke article.

I hope it isn't true. I don't want SONY losing half their fanbase AGAIN this gen due to poor marketing.

cayleee3166d ago (Edited 3166d ago )

Well thats an additional 100M USD they will need figure out how to tax from their customer, nothing comes free.

bangshi3166d ago

@NeverEnding1989 personally I think they lost their fan base on price and availability - not marketing.

I don't think people said to themselves 'sod the PS3 I hate babies crying in adverts'.

It also isn't about how much you spend. For example - say they ran the same adverts again, but spent $1 trillion on making getting advert shown everywhere you turned.

If the advert is a dud, it wouldn't make much difference.

Just needs to be good advertising with a sensible budget.

fei-hung3166d ago


The math in the article is wrong and your theory on making the money back might also be flawed.

1) the $100mil budget is for advertising a product and all which comes with it. Meaning, if they can shift enough of this product and anything related to it (games, accessories, services, BR films) that lead to profit, the campaign is successful. However, the more they sell will reflect how affective and therefore successful the campaign had been.

2) if we assume Sony makes no money of the PS4 and only from games, services and accessories and they make $10 from each game and $5 from accessories, Sony will have to shift 10mil games or 20mil accessories or a mish mash of both.

3) however, the truth is far more complicated than that. What about factoring in freebies and other promotions around the globe? What about those people who buy more than one console and more than one game?

4) what about the snowball affect which will come as a response to people migrating to a new console not due to the campaign but because they want to game on what their friend or cousin is gaming on as a result of the campaign.

In other words, there is no sure way of calculating how many units Sony needs to shift if each or how much the cost of each is, but one thing is for sure, if it's successful, it will be a $100mil well spent as the fruits of their labour will keep coming for years to come.

JP13693166d ago


Yes, there is a way to calculate the number of units, games and accessories that need to be sold. Your "snowball effect" scenario is the basis of marketing and yet, each of those people will still be buying a console, game(s) and possibly some accessories, all of which will be accounted for in sales numbers. Nobody can predict what the exact numbers or proportions will be, but Sony can make an educated guess. This, in turn, will be a determining factor in how much money they are willing to spend on advertisement.

GameNameFame3166d ago

They spend 500 mil alone on Kinect launch marketing...

But higher quality of PS4 will make up for its smaller marketing budget

Freedomland3166d ago (Edited 3166d ago )


1.7 million games, 286,000 ps4's.

ZombieNinjaPanda3166d ago


If advertising meant nothing, then the Halo titles wouldn't have needed those massive advertising sprees they went on. Advertising is key for any product. You really need to take a step into the real world if you think that's not true.

ps3_pwns3166d ago

I dont think you are very smart

HappyGaming3166d ago

They would be $100 million down if their $100 million marketing budget increased global sales by 0%.

You really think $100 million is a lot in a multi billion dollar industry? Are you from a communist country or something?

They wouldn't "invest" $100 million if they thought they wouldn't see a return on it.

ShabbaRanks3165d ago


Do you even know how much MS spends to advertise lol ?

sengoku3165d ago

i'm guessing the PS4 will do pretty well.
they wont be spending as much on adds as M$ does but that didn't hold the PS3 back.

FrigidDARKNESS3165d ago

This article is written by someone who doesnt know business retail at all.
First off the ps4 console has very low margin so not much money will be made on it. I agree with you on the software statement. They will make some money on that but most of it is paid out to developers and distributors and publishers.

Divine3165d ago

this guy just felt like making a ps4 article

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jcnba283166d ago

Sony are in serious debt buddy.

shoddy3166d ago

Yet they are still on full throttle.
Thank Sony

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a_bro3166d ago

its not just how much they have to make back, but how they spend it.

Cocozero3166d ago (Edited 3166d ago )

Only $100ml? If MS spent $500ml on an accessory for a 6 year old console expect a $1bl budget for the next xbox.

Sony better hope and pray it doesn't launch this year or it will likely be a waste of money for them.


And why the 360 outsold the PS3 :)

MariaHelFutura3166d ago (Edited 3166d ago )

Which is why MSFT doesn't own many relevant development studios.

dcbronco3166d ago

Microsoft doesn't have as many studios because they were smart enough to see their studios were losing money and shut them down. Only a fool continues in a losing business. If people want a business to stay around they need to buy the products. Constant losses is a dumb business model for any company.

MariaHelFutura3166d ago (Edited 3166d ago )

That's one way to look at it. Or, you could look at it like they're to stupid and don't have enough of a creative vision to carry on successful 1st party studios like Nintendo and Sony have done for years. I can't deny from a business standpoint they're doing well. They're selling people a service that is free everywhere else and manipulated their way into the casual market by attracting hardcore gamers first, which has all worked out great for them. I hope for your and MS sake the 720 is Kinect only, cause in reality it (by your thinking) would be stupid not to be.

BABYLEG3166d ago

This guy just said microsoft doesn't have enough creative vision...

Robo replies anyone?

insomnium23165d ago (Edited 3165d ago )


"They're selling people a service that is free everywhere else and manipulated their way into the casual market by attracting hardcore gamers first,"

I agree 100% but why is it that when I say something similar I get debubbled and disagreed to hell and called a butthurt fanboy?

I find it exceedingly odd to see these users like dcbronco who think it's great to have studios closed down if they don't bring profits with every game they put out. I thought this was news for gamers, not news for investors.

Same reason is used defending MS by maniacmayhem who refuses to admit that having more games is better than less games.

"Do I think MS should come out with more original IP's?
Yes, but only ones that I might care about. PS3 may have more exclusives but most of them I don't care about personally. inFamous, God of War and Disgaea are the only games i am excited about for the PS3. Last of Us looks good but I would rather get Bioshock:Infinite. So just because you have more exclusives doesn't make your system better."

See MS gets off the hook cause of personal taste. Sony's PS3 is no better cause of personal taste too.

Mayniac also says he has been here since the gen started and he hasn't seen any bias or animosity against PS3. Go figure.

How about it Maniac? Is Maria a fanboy too. He says the same things "manipulated their way into the casual market by attracting hardcore gamers first" I say but he has 6 bubbles so how about it?

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MariaHelFutura3166d ago (Edited 3166d ago )

But the 360 didn't outsell than the PS3. It sold the least of all 3 consoles. Imaginary aspirations don't count, sorry.

Pope_Kaz_Hirai_II3166d ago

@cocozero the 360 outsold nothing its sold the least this gen

Dee_913166d ago (Edited 3166d ago )


Okay now hold those 360 numbers for about a year .Then compare it to ps3..

jony_dols3166d ago (Edited 3166d ago )

@jcnba28: In Europe the 360 had a 16 month head start in sales. That's nearly 1 & a half years, and what; it's around .5 million ahead in it's lifetime?

If the PS4 has a headstart like the 360 had over the PS3, then it will blow the 720 out-of-the-water at retail.

Snake Raiser3166d ago

Numbers are inaccurate. Most likely just old and outdated.



Are those vgchartz numbers I see there?

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zeddy3166d ago

good point though, even if the next xbox is total garbage, microsoft still have got the means to advertise the crap out of it, just like they did with kinect, and even though we all knew it was a useless product people still bought it. if that 100 million budget is right then its definitely not going to be enough for sony.

majiebeast3166d ago

Big marketing budget isnt saving Windows 8 or Surface. They are still running ads for Windows 8 and the thing isnt selling, its in tv shows and everything and still it doesnt help. They need more then just a bunch of marketing.

StockpileTom3166d ago

The tablet competition for them is more heavily advertised than their console competition. They are competing with Apple right there among others.

sengoku3165d ago (Edited 3165d ago )

LOL tablet competition there the one's trying to get a piece of it, just spend more on advertisement that should help right?
or maybe there just a little to late?

by the way who is the competition on the PC Market, Windows 7??

chukamachine3166d ago

PS3 has already passed the 360.

Once numbers are given again, you'll know this.

As for advertising, hopefully the same gimps that bought the 360 won't buy the 720.

Gears - Little men, big suits.
Fable - blah
Forza 5
Halo - Fight till the end
Alan wakey wakey
Milo - Is he a real boy
Kinect - 100 titles of pure crap.

Snake Raiser3166d ago

Gears I have respect for as just a fun "Shoot-em-up". That's nice every now and again. Not saying that it convinces me to buy an xbox, but it can stand as a good game series (plot, not so much though).
Fable is a really sad story. The xbox lacks any really convincing exclusive RPG's now. Fable once held a lot of promise.
Forza 5- Not many people care about Forza any more, never really played it myself.
Halo- Used to be REALLY good. Haven't played the recent ones, but I can tell just from my friends that it is not as big as it once was.
Milo is eh.
Kinect is indeed 100 titles of pure crap.

Eyeco3166d ago

Although his one bubble does indicate a troll, he actually does have somewhat of a point, If microsoft can spend 500 million on some [email protected] casual peripheral, then surely Sony can do better with the launch of the PS4 this is Sony's chance to reclaim the throne.

They could do better, what I never understood is that this company owns Columbia pictures one of the leading film companies in the world, Last year Skyfall was the second highest grossing movie of 2012, would product placement have hurt them (PS logo graffiti in the background)

Or what about their music division Sony Music is the second largest record label in the world and look whose signed to them, only the biggest the most popular lol "artists" in the world Adele, Chris Brown, One Direction (cringe), Jlo, Pitbull the list goes on don't get me wrong I think their music is the worst thing since aids but a bit of products placement in their crappy videos would do them good, look how much views they get on youtube, Sony isn't make that great use of their resources.

MysticStrummer3166d ago

360 outsold PS3? Not according to a little thing I like to call math. PS3 reached 70 million sold nearly a year faster than 360.

hellvaguy3165d ago

Funny thing bout statistics is that they can be manipulated (from ignorance, accident, or on purpose) to make them independent of math.

JP13693165d ago (Edited 3165d ago )

How did the 360 outsell the PS3? It had a year head start in which it amassed a much larger lead than it currently has. You're really bad at math.

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dedicatedtogamers3166d ago

Wait. Are people even complaining about this? Microsoft spent half a billion launching Kinect. Not a console launch. A peripheral launch. Are there really people upset that Sony is spending 1/5th that on a full-blown console launch?

Ezz20133166d ago

ps4 reveal have over 28 million view
and that's one video, not talking about sites ,forums etc
ps4 reveal already did all the marketing sony needs

this gen
MS did every thing with xbox360
tons of ads ,spent millions on timed exclusives/DLC etc
and yet they ended up being outsold by sony's ps3

MariaHelFutura3166d ago

I'm so excited and I just can't hide it. I want you.

sway_z3166d ago

haha Pointer Sisters...what a classic :)

Knight_Crawler3166d ago ShowReplies(2)
Gimmemorebubblez3166d ago (Edited 3166d ago )

The Ps3 had a huge 150 million dollar marketing budget. The PS3 launch campaign was AWFUL (demonic babies etc.) . If Sony wants success they must have really good simplistic adds that tell you what the PS4 about. MS will come hard with their ample billions so Sony must have a strong ad. campaign.

MariaHelFutura3166d ago

What do you have against demonic babies? They need love too.

SAE3166d ago (Edited 3166d ago )

Why advertise it?. They advertised vita a lot but did it get huge sales ?. No.. It's people them selfs that advertise what they like. I never bought something because i saw it in tv or on wall..etc I buy what's good and what my friends and family buy.

Note: They do the same too so don't tell me they saw it in tv..

Zhipp3166d ago

They advertised Vita!?

Tultras3166d ago

The vita had a 50$ million dollar budget.

For reference, the Xbox 360 both had $500 million dollar budgets.

SAE3166d ago

If the vita wasn't limited, had games like gta/gt5..etc , Cheaper games and memory's it would have sold really really , i mean it , realllllllllly well because we wouldn't need to think really hard to understand how the vita works. I swear when i knew about the vita limitation i almost changed my mind on buying it. I bought it because i needed it. If i didn't i would have waited until it hacked or fixed by sony. So advertising didn't made me buy it.

If your product is good and exciting it wouldn't need 1 ad . Even news channels would advertise it them selfs for free if it's that good.

KwietStorm_BLM3166d ago

Ok. Now explain the correlation between a dollar amount and a good ad that works.

Gimmemorebubblez3166d ago

Consumers what to see cool things that the console can do and the must have games it has, not what the console does to possesd dolls.

Monkeysmarts3165d ago (Edited 3165d ago )

Good ads aren't cheap and people tend to lean toward buying products that are more visible. Aside from unpredictable viral ad campaigns, successful marketing usually requires a high dollar value. That's just the reality, unfortunately. Warren Buffet said he would spend $2 billion on Geico ads if he could. In 2011, Geico spent $994 million on ads. Everyone knows the Geico Gecko and the Geico Caveman. Ads like that cost a lot of money to buy from an agency and get in the public view.

There is a direct correlation between dollar value and success in marketing.

Snake Raiser3166d ago

Exactly. What the advertising war will come down to will be whether Sony can put up quality ads that MS can't match, or will MS simply overwhelm Sony with numbers.
Sony can pull this off.
They need to do better than this gen though. That was just sad.

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