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III-V

Member
Oct 25, 2017
18,827
i believe he is referring to Nintendo comparison.

DyTULz1X4AEK71x.jpg
I'm so broken I can't tell if your kidding anymore. Posting financial charts is not console warring FFS.
 

gundamkyoukai

Member
Oct 25, 2017
21,104
on their own games yes. From third party games? not really. The cut is about 30% or so either way.

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I added a pic to show you they do not get the same at retail .
If Sony get 30% at retail how much you think would be left for pubs after retail margins and everything else.
All your other points don't change the main point which is they pay out most of there money off the psn store.
Most of the software , dlc , mtx etc etc sales are not first party and all those other things can make up the amount of money that brings in .
 
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gundamkyoukai

Member
Oct 25, 2017
21,104
This is from onlive execs fudging the numbers. Retailer cut is 20% or $12 on a $60 game. Could be even less for bigger games since retailers cut deals directly with publishers.

Platform Royalty is 10%. So $6. Not $7.

No such thing as returns. you cant return open copies of games so im not sure wtf they are going on about.

I wouldnt be surprised if Distrubtion costs of shipping a disc in a box to retailers would cost $4 per copy. thats ridiculous.

Either way AegonSnake they make way more off DD than they do retail .
Also shipping can cost that much when have shipped and packages copies all over the world\country .
It's not like blu ray factories in every country or state .

EDIT packaging is more likely cheaper now since game booklets are dead lol
 

PianoBlack

Member
May 24, 2018
6,629
United States
Panello was in this thread and speculated that the PS5 was 8 tflops. Maybe their spies had old information. Maybe it was the console Sony was going to release in 2019 for $399 but changed their plans and went with a $499 monster in 2020.

But i still gotta question why they would go on stage and make that comment when they had a 40 CU GPU at 9 tflops at best. or maybe, they saw the thermals of the 5700xt Ghosttrick and sncvsrtoip keep going on about and figured Sony could never release a 225w console that would be more powerful than their 225w console.

Agreed they are definitely not making such a statement on the back of a 40CU 9TFLOPs console. Doesn't mean Sony hasn't done better, but I'm very confident Scarlett will not be sub-Stadia.

Of course I also think Lockhart is still coming so feel free to ignore me, lol.
 

DukeBlueBall

Banned
Oct 27, 2017
9,059
Seattle, WA
Panello was in this thread and speculated that the PS5 was 8 tflops. Maybe their spies had old information. Maybe it was the console Sony was going to release in 2019 for $399 but changed their plans and went with a $499 monster in 2020.

But i still gotta question why they would go on stage and make that comment when they had a 40 CU GPU at 9 tflops at best. or maybe, they saw the thermals of the 5700xt Ghosttrick and sncvsrtoip keep going on about and figured Sony could never release a 225w console that would be more powerful than their 225w console.

In 2019 a 8-9 TF Navi console is the best that any console manufacturer can do. Don't forget such a console is still 2x over 1X and cost more BOM than 1X on launch. Probably over 150W TDP too.

In 2020 the options are better. 7nm would get 7% perf boost and 7nm euv is 10%-15% perf boost.
 

III-V

Member
Oct 25, 2017
18,827
Very cool video and thanks for the time stamps. Some interesting thoughts there.
Rembrandt = X1X infinity portable o.O
:)
 

anexanhume

Member
Oct 25, 2017
12,913
Maryland
Completely unsubstantiated leaps of logic. Because they're both APUs, Rembrandt must necessarily be Scarlett SoC derived? It's 5nm, just because? What about the fact neither Zen2, Zen3, or Navi are native to 5nm?

Thanks for sharing. It is interesting that the Durango code name made it into some of that information too which let him down a path of thinking Xbox was involved here.

They use famous names/places because they're public domain and are subject to copyright/trademark concerns. Any overlap is coincidence.
 

Sekiro

Member
Jan 25, 2019
2,938
United Kingdom
Thanks for all the answers guys about how Sony gets their money back from selling consoles at a loss.

Did not know PSN was so profitable in the billions, Wonder if Sony will explore the idea of having a $150 or even $200 loss on the PS5 and go insane on the specs, similar to the PS3.

The PS3 selling at more than $200 loss per console in the 1st few years totalling $3 billion over the course of 6 years as Toni mentioned earlier, money that can barely making a dent into SCEI today thanks to modern day PSN, so why wont they go big, do what AegonSnake believes and make a 14TF RDNA behemoth and sell it for a $200 loss per unit and use PSN/Year 1 game sales to easily recuperate the loss.
 

Vimto

Member
Oct 29, 2017
3,714
so why wont they go big, do what AegonSnake believes and make a 14TF RDNA behemoth and sell it for a $200 loss per unit and use PSN/Year 1 game sales to easily recuperate the loss.

Why would they? They are a business at the end, losing $3Billions just to have 14TF is nuts.You try to downplay how much that is but its HUGE amount of money.

The power aspect will not hurt the console if the gap is little from Xbox, average consumer won't care, especially if Sony keep producing incredible exclusives.
 

DavidDesu

Banned
Oct 29, 2017
5,718
Glasgow, Scotland
Yh 2018... seems you skipped all of 2019.
Huh, I was talking about Microsoft initially stating that their next gen console would be the most powerful, continuing the legacy of the X1X. 2019 didn't alter history. That's what they first posited, now they seem to have backtracked and they're using different language about THEIR most powerful console and the most immersive console.
 

Deleted member 43

Account closed at user request
Banned
Oct 24, 2017
9,271
We don't know what the distribution of all that revenue is, and saying "most goes to third parties" probably isn't accurate either. PSN revenues are subscription based revenues, PSNow based revenues, advertising revenues, revenues from sales of first party titles and add ons, revenue from digital video services, etc etc.

Sony's financial reports don't go into that kind of deep dive. But regardless 12.5 billion in revenue is still 12.5 billion in revenue, and it's recurring revenue year over year. Over 5 years that's 60 billion in revenue.

It's in Sony's best interest to KEEP that revenue stream going, which means keeping people in the ecosystem. That revenue stream wasn't in place for the PS1, PS2, PS3, or PS4 at launch:

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so any calculation of how much was lost on those systems isn't likely to be a good measure of what Sony is willing to lose on this one. It's in Sony's best interest to retain the gamers they have AND get new ones into the ecosystem as fast as possible, since the longer they own the system the greater network revenue is.
Yes, it is.

Sony still gets to keep a nice chunk of change, but a huge amount of the revenue and profit growth for Sony and MS has been because they now own the retailer.
 

AegonSnake

Banned
Oct 25, 2017
9,566
Thanks for all the answers guys about how Sony gets their money back from selling consoles at a loss.

Did not know PSN was so profitable in the billions, Wonder if Sony will explore the idea of having a $150 or even $200 loss on the PS5 and go insane on the specs, similar to the PS3.

The PS3 selling at more than $200 loss per console in the 1st few years totalling $3 billion over the course of 6 years as Toni mentioned earlier, money that can barely making a dent into SCEI today thanks to modern day PSN, so why wont they go big, do what AegonSnake believes and make a 14TF RDNA behemoth and sell it for a $200 loss per unit and use PSN/Year 1 game sales to easily recuperate the loss.
i dont think they will be willing to lose $200 per console. $100 max. thats $400 million per quarter which they should be able to hide with some big game releases in each quarter.

but will they? i dont know. its definitely in their best interest to keep those ps+ billions rolling in every year. its definitely in their interest to rake in $12 billion in revenue from third party sales and microtransactions every year. so long term, the $1.5 billion loss will net them $100 billion in revenue alone. some investors might not like it for the first few quarters, but if they fuck up and lose market share to microsoft because thermals need to be under 200w for whatever reason then the investors will be even more upset.

with so many shake ups recently, i dont know what they are planning to do. i do think that phil has shown them hes no don matrick and that put them off of releasing a $399 console. everyone says that ms needs to have the most powerful console but sony has more to lose next gen than ms. ms posts $10 billion in profit every quarter, sonys best quarters are $3-4 billion in profits and they heavily rely on the ps business to get there. ms gets to $10 billion inspite of xbox.

sony has a lot riding on the next console and while they might win next gen with a $399 8 tflops console, will they take that chance? i highly doubt it.
 

Deleted member 15973

User-requested account closure
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Oct 27, 2017
5,172
i dont think they will be willing to lose $200 per console. $100 max. thats $400 million per quarter which they should be able to hide with some big game releases in each quarter.

but will they? i dont know. its definitely in their best interest to keep those ps+ billions rolling in every year. its definitely in their interest to rake in $12 billion in revenue from third party sales and microtransactions every year. so long term, the $1.5 billion loss will net them $100 billion in revenue alone. some investors might not like it for the first few quarters, but if they fuck up and lose market share to microsoft because thermals need to be under 200w for whatever reason then the investors will be even more upset.

with so many shake ups recently, i dont know what they are planning to do. i do think that phil has shown them hes no don matrick and that put them off of releasing a $399 console. everyone says that ms needs to have the most powerful console but sony has more to lose next gen than ms. ms posts $10 billion in profit every quarter, sonys best quarters are $3-4 billion in profits and they heavily rely on the ps business to get there. ms gets to $10 billion inspite of xbox.

sony has a lot riding on the next console and while they might win next gen with a $399 8 tflops console, will they take that chance? i highly doubt it.
Don Matrick released a $499 Xbox One and Phil Spencer has released a $499 Xbox One
 

Lagspike_exe

Banned
Dec 15, 2017
1,974
There is almost no chance that MS will manufacture a 360mm^2 APU next Fall on 5nm. That will be reserved at best for Apple and small A14 chips.
But I'd love to be proven otherwise if MS launches a 14TFLOP chip.
 

DrKeo

Banned
Mar 3, 2019
2,600
Israel
My theory always was that Lockheart got canceled because Anaconda was meant to be a 500$ monster but around E3, when MS found out that the PS5 is at the same power level as Anaconda or maybe even more powerful, the whole idea of being the top dog by making a monster went down the drain. So they had to go to their last resort, 399$. If Anaconda is 400$, there is no reason for a 349$-399$ Lockheart, it's not like they are going to sell it for 250$ and lose 100$+ on each unit of a product that is aimed at a more casual market which doesn't spend as much.

That's my tin-foil-hat theory, Scarlett is 399$ because MSRP price and their financial backbone is MS's only way to combat Sony at launch.
 
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PianoBlack

Member
May 24, 2018
6,629
United States
My theory always was that Lockheart got canceled because Anaconda was meant to be a 500$ monster but around E3, when MS found out that the PS5 is at the same power level as Anaconda or maybe even more powerful, the whole idea of being the top dog by making a monster went down the drain. So they had to go to their last resort, 399$. If Anaconda is 400$, there is no reason for a 349$-399$ Lockheart, it's not like they are going to sell it for 250$ and lose 100$+ on each unit of a product that is aimed at a more casual market which doesn't spend as much.

That's my tin-foil-hat theory, Scarlett is 399$ because MSRP price and their financial backbone is MS's only way to combat Sony at launch.

This never made any sense. Cancel the console that would undercut Sony so you can... Undercut Sony? Especially if the performance delta is as small as people say it is, and especially given they are STILL selling the X at $500 and have shown no appetite for massive losses just to get console sales
 

DrKeo

Banned
Mar 3, 2019
2,600
Israel
This never made any sense. Cancel the console that would undercut Sony so you can... Undercut Sony? Especially if the performance delta is as small as people say it is, and especially given they are STILL selling the X at $500 and have shown no appetite for massive losses just to get console sales
500$ VS 500$ MS will lose, hands down. Going lower than Sony is their only option. Back when they thought they had the power card, that could have been an advantage. But if the PS5 is as or more powerful? MS is basically doomed unless they undercut them in price.

If they are going to undercut the PS5 at a lower price, they can't have Lockheart anymore. You can lose 100$+ on a hardcore machine made for the hardcore because they are trendsetters that will spend hundreds if not thousands of dollars on software and services over the years. But a cheap 1080p machine meant for a more casual audience? That's not something you are going to sell at a 100$+ loss.

Regarding the X, no one is going to lose money on a console in the second half of the generation, that's just mad. But still, X is sold for much less than 500$ all the time, right now you can get it around 380$ with a free game on Amazon.
 
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anexanhume

Member
Oct 25, 2017
12,913
Maryland
This never made any sense. Cancel the console that would undercut Sony so you can... Undercut Sony? Especially if the performance delta is as small as people say it is, and especially given they are STILL selling the X at $500 and have shown no appetite for massive losses just to get console sales
Mostly agree with this. However the MSRP may be $500 on the X but no one is paying that. It's almost on constant promotion. $500 is for stupid consumers.
 
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