Johnny Awesome
Veteran
They'll likely turn a profit when MS pays to put it on Game Pass for a year.
Depends how much it will need to turn a profit and if MS sees that amount as financially logicalThey'll likely turn a profit when MS pays to put it on Game Pass for a year.
Didnt understand what you were pointing to until I came across some news by accident. The investor response is just nuts. Share value nose dived by billions simply because Sony didn't reach the sales targetsWhat just happened? I blinked and PS5 is a failure?
The narrative rebounded really hard.
Actually it is the margins the key reason
Sony plunged $10 billion after its PS5 sales cut. But a bigger issue is its near decade low games margin
Around $10 billion of value was wiped off Sony's stock this week after it cut its sales forecast for its flagship PlayStation 5 console for the fiscal year.www.google.com
Strange times for the gaming industry
Exactly. What we are witnessing is simply the predictable outcome of Ryan's strategy. In end of PS3 and most of PS4 era they were doing more risky Single Player ish AA projects (on top of the usual AAA projects that did not increase on PS5, actually slowed) but were doing more profits. For instance cheap games like Bloodborne, Driveclub or even Day's Gone were actually eventually very successful and made Sony plenty of profits (and good will to invest into PS ecosystem). An almost indie game like Resogun (that Sony still fully own) was probably the reason of many people switching to PS ecosystem. Where is Resogun 2? But I digress.Damn. Looks like the exclusives that drove people to buy into the platform might not have been worth those few extra $million from PC sales.
Short term thinking strikes again.
They wanted to make short term profits (Ryan is soon gone, probably with big bonuses) and thought they would trick people into double dipping into PS5 then PC. Wrong, people are not stupid. What they have done is encouraging Playstation gamers to invest into PC ecosystem, basically bringing their old Playstation money to Nvidia and Valve: The biggest winners of Ryan's strategy. If they don't revert to the old winning strategy (PS3-PS4), then Sony profits won't improve (but Nvidia and Valve will still beat new records).
You can't rush a game from a reputable studio without damaging the reputation of that studio, though.Have they put out a Naughty Dog game on the PS5 yet?
Has Spiderman 2 or Horizon Forbidden West or any other PS5 game sold systems?
Have they done a price cut yet?
Seems like plenty of things they could still do to sustain sales and extend this generation.
Question for you. What do you think contributed to Playstation's popularity and what do you think comes into people's minds when they think of Nintendo?It's crazy.
I still think hardcore console players switching to PC in droves is a myth though.
I know about 100 gamers, some PC and some console and almost none of them have switched from console to PC or vice versa in over 10 years.
There's a few more that switched to PC near the end of the X360 era around 2011 or so, but none since.
Even the few who switch have nothing to do with Sony's publishing decisions.
Probably a topic for a different thread, but it would be interesting to analyze the life cycle of a gamer. I have some theories....
But it's not only about AAA. Some others publishers are thriving by releasing AAA games. Like From Software or Nintendo. What do they do differently at Sony to make so little profits comparatively?You can't rush a game from a reputable studio without damaging the reputation of that studio, though.
Forbidden West was cross gen. Spider-Man 2 was the only first party non-VR PS5 game released last year. It undoubtably sold systems.
And a price cut isn't going to solve the problem of your margins being too slim. In fact, it's going to exacerbate that problem.
The problems Sony is having right now are the problems the industry at large is having right now. AAA development is too expensive. Sony has been all in on it since the later stages of PS3, but they haven't learned what their film arm has known for decades... You need a diverse portfolio with smaller and larger budget offerings. You never know when a movie like Blair Witch, that's shot on a shoestring budget, is going to blow up and make millions. The same things happen in games. Just look at Among Us or Vampire Survivors.
Nintendo can sell games no one else can. No one else can make a Mario Kart and sell 70m. They also don't loose money with hardware.But it's not only about AAA. Some others publishers are thriving by releasing AAA games. Like From Software or Nintendo. What do they do differently at Sony to make so little profits comparatively?