Don't think that makes sense with T2 earnings forecast. Think that was supposed to be in their fy25 earnings.
Sony FY23 Q2 Financial Results! Record-breaking Q2 Revenue, Low Margins, and 4.9M PS5 shipped!
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Absolutely not a chance, you're not gonna get a game as big as GTA on a 3 month window between announcement and release, not a chance. I'm personally expecting an September or October release date followed by a delay into early 2025.
This too, Take-Two's forecast includes a significant revenue increase of like 2 billion between April 1st 2024 and March 31st 2025, which indicates that's the current release window for GTA.
4% Physical wow! Not bought a disk in years, to much clutter and of course disk rot. I guess end of an era is coming quickly.
I try and by physical where I can. For me it's usually cheaper than buying digital. I tend to buy them day one. If Alan Wake 2 had a physical copy I would have bought it already. I still haven't gotten the incentive to buy it digitally yet.
Their actual margin would probably look better if their revenue wasn't inflated from 3rd party game sales. The include the 70% they have to give back to 3rd parties in their revenue.
Kinda misinterpreting the chart, that's the full income amount including hardware sales and all that income as well. So on that chart it's 4% physical 21% digital.
The full game split in the lower chart is what Ur looking for, seems to be around a 70/30 split for full price games.
And that includes many games without a physical release, most notably BG3 during this quarter, but also pretty much every indie game.
Gonna be insanely hard for them to reach 25. Last year they posted records due to being the first time the PS5 has been in stock. I think they expected the numbers to stay the same but the slim coming later with the ragnorok bundle still being available probably won't yield the same shipped numbers as forecasted. Not the 22-23 isn't an insane achievement. They we just always outlandish.
Yeah it's kinda crazy we could see them sell >20m and their stock price will dip due to missed projections lol. They are confident in the 25m number. Guess we'll see how it pans out…
PS5 always seems to be available cheap in the UK, sometimes very cheap. They are being very aggressive. Yesterday you could get it for £399 with MW3. Think that's a saving of about £150.
So I guess I would expect profits as a % to be less if they are aggressive as this elsewhere, it's a long term play.
So I guess I would expect profits as a % to be less if they are aggressive as this elsewhere, it's a long term play.
Does this mean people are buying older/cheaper physical games or people are only buying physical games from publishers which have a higher cut from Sony? 🤔 Hard to see this and see physical living for much longer.SIE's cut from Physical games sold on PlayStation (average gross profit per physical copy sold):
Seeing as every Q1/Q2 it drops, makes me think this is older games?
The 25 million forecast seems insane but at the end of the day I think it could be reached, but only if Sony is aggressive enough during coming sales. I am not sure Sony is willing to lower their margins for this even further though, they seem to be relatively slim already.
So yeah, theoretically possible but I just don't think this is going to happen.
Speaking as a consumer, the average price of digital games going up constantly is not nice to see :-/.
So yeah, theoretically possible but I just don't think this is going to happen.
Speaking as a consumer, the average price of digital games going up constantly is not nice to see :-/.
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Also, with the rest of Sony doing so poorly, PlayStation is becoming more and more important to the company. They really ought to be more aggressive especially with acquisitions.
Seeing the margin bottom out almost as fast as the revenue skyrocket is crazy to me and I feel like I need someone much smarter on the matter than I am to explain if that's very bad or not. Cause that seems bad!
Sony mentioned hardware margins were going to decrease as they run a ton of promotions and bundles on the hardware. Have to hit that 25m somehow.
So they probably have to sell 12-13M PS5's this Q to have a chance of hitting their forecast. Maybe more.
They are spending more money than ever making more money than ever which is funny but also it's like they are just spinning a lot of plates rn
Bungie acquisition is closing fully / 12 live service games / single player sequels and new ip from premiere studios in dev
Also they are making a bunch of those companion devices like the portal and the new earbuds etc which would be a spend until they are selling them
They are being aggressive, that's why their profit margins are on the floor.
They're being aggressive with selling the console, I'm talking about their software lineup especially when their first party software share seems to be at the lowest in recent years.
Are you talking about PS5 HW numbers? There should be no problem in reaching 20M since last fiscal year they sold 19M PS5 units in a year where they were still supply constrained. They also reaffirmed the current goal for FY23 which is 25M sold units (not sure if they'll be able to do it but they're confident about that number). My guess is that they might fall 1 or maybe 2M short of that hefty goal.
What publisher or studio would you like them to acquire that doesn't already release games on PlayStation (some of them already with some window of exclusivity)? They are trying to get as many users as possible so if/when one of the dozen GaaS games hits a home run they can maximize profits off it.
Edit: Also selling more consoles is a valid (arguably cheaper) strategy to maintain market share and leverage that to continue getting third party exclusive titles.
They had weak supply last year in Europe during the holidays and the shipment wasn't that great overall in Q3. This year they will easily ship 10 plus million during the holidays. They aren't counting on a huge Q4 like last year.
Edit: To those wondering about profit PS has to actually pay for Bungie out of their revenue. That it is hitting profits as well as the cost of hardware and increased development costs.
They seem to be in a reorientation phase at the moment on that front. The Ryan exit, the GAAS pains etc. Along with all the other tensions of balancing current model success vs disruptive pressures. The upside is that the success they have gives them a degree of runway to figure this out I guess. I think we probably will see changes in how to manage these transitions once new leadership is bedded in, since we might surmise there wasn't a great deal of happiness internally and with Sony Corp about how things were going - we'll see if they're to the taste of the audience or not.
for PS5, 120 million unities when its all said and done is basically a given by now.
even in Japan its selling more than the PS4 launch aligned.
even in Japan its selling more than the PS4 launch aligned.
I swear I've been reading this sentence for more than 15 years now, while in those 15 years Sony have set to be the major in the entertainment industry, especially in music and TV/shows. They are one of the major semiconductor tech brands out there and have revolutionised photography with the best digital cameras, sensors, and now delivering the professional photography field with the first full frame global shutter and it seems like that aggressive investment into the image sensors made a big impact on lower profits besides their financial services.
I'm wondering how many will actually see the light of day. It just feels like a huge money and they want to get something out of it but already can see it's not going well. I'd rather they stop right now and go back to creating great single player, story driven games.
I don't think just having games release on PlayStation is enough to maintain dominance. Xbox One and PS4 share like 90-95% of their software library, that didn't stop PS4 from trouncing the Xbox One. Exclusives are important and right now PlayStation exclusives are the least relevant to the platform than they've been (since at least 2019 but I imagine that number is the lowest in a lot longer).
You're definitely right that selling more consoles is a valid strategy, but when your biggest competitor is buying publishers left and right you ought to be more aggressive on that front as well.
I agree that they are in a weird spot right now, just think being in a weird spot while your competitor is acquiring like crazy isn't good. Fortunately, like you say, they have a pretty big buffer so they're protected from a lot of this temporarily.
Sony has also been on a pretty steep decline for more than 15 years as evident by their employee counts, a big chunk which is from their electronics division, while tech giants have been growing rapidly (recently too rapidly). Just because they release some good products, doesn't mean that the company isn't being carried by PlayStation especially in the two most recent quarters.
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You've been hearing for more than 15 years because it's been true for more than 15 years.
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I absolutely love the Sony X90L 55 inch TV in my bedroom. Great television.
I was gonna say...time is a flat circle or what year is this, lol.
But there's a separate Addon content section for that in the graph
I think you meant to post this in the thread about the live service games delay. But the fact is, the single-player blockbusters aren't "safe" either. So you can make an unsafe bet with a revenue ceiling, or an unsafe bet without a revenue ceiling.