Good for them but ps4 not 199 for this Christmas is an huge mid finger for the customer IMO.
I thought Fate and Order was included in their mobile results? Isnt it doing gangbusters?
Sony's Music segment includes Fate/Grand Order.I thought Fate and Order was included in their mobile results? Isnt it doing gangbusters?
And GoW:) There it is. was worried they wouldn't bring it out after last years rediculness around a 200$ ps4. We need a 200 RDR 2 bundle now.
If I'm hitting my volume & margin targets at $299 please explain why I sacrifice margin for volume sales on potentially lower lifetime value customers?
Why would I pay more (marketing + loss of profit cost) to acquire customers who will generate less revenue over the long term?
Because volume sales attract more new people, so :
- more potential PS+ subscribers
- more new consumers to buy games physically or digitally (so Sony get royalties on each copy)
- more new consumers to buy Sony exclusives (especially this year with God of War/Detroit/Spider-Man)
- more new consumers to spend for digital content (DLC/cosmetics/etc...) on popular game (Fortnite/BO4, soon RDR2 Online)
- more new consumers attract new consumers (you will and want to buy the same console than your friends)
So these new consumers will generate more revenue in the long term.
Black Friday/Holiday is the perfect season to grow your install base for future purchases on your ecosystem (especially when your console is dominant and have big exclusives released in the year)
And it doesn't matter if you keep or lower the price because no matter what choice you make, you will have to pay to promote the PS4 during BF/Holiday, so it doesn't change anything for the marketing.
Because volume sales attract more new people, so :
- more potential PS+ subscribers
- more new consumers to buy games physically or digitally (so Sony get royalties on each copy)
- more new consumers to buy Sony exclusives (especially this year with God of War/Detroit/Spider-Man)
- more new consumers to spend for digital content (DLC/cosmetics/etc...) on popular game (Fortnite/BO4, soon RDR2 Online)
- more new consumers attract new consumers (you will and want to buy the same console than your friends)
So these new consumers will generate more revenue in the long term.
Black Friday/Holiday is the perfect season to grow your install base for future purchases on your ecosystem (especially when your console is dominant and have big exclusives released in the year)
And it doesn't matter if you keep or lower the price because no matter what choice you make, you will have to pay to promote the PS4 during BF/Holiday, so it doesn't change anything for the marketing.
At the risk of putting words in his mouth, Kyser73's point is that the people coming in at the lower prices are those that are less likely to invest in new games and digital content. That is, they'd be more likely to purchase used games and be unlikely to invest it cosmetics specifically because they are price sensitive consumers.
depends on how many they make available and how long they let this promotion to run.
Yes, operating income is the most impressive part (a record in PlayStation history).The new operating income forecast for the year in the game business is pretty insane. I mean, relative to where it started. They were forecasting 190bn yen at the end of the last fiscal year, bumped it to 250bn yen at the end of the first quarter, now bumped to 310bn yen.
For some perspective - if they meet that target, the cumulative operating income during these six years of the PS4's life (741.1bn yen) will exceed the cumulative loss of the seven years of the PS3 (443bn yen, ish?) and the cumulative profit of the five years of PS2 (264bn yen), combined. With another FY of PS4 to go.
At the risk of putting words in his mouth, Kyser73's point is that the people coming in at the lower prices are those that are less likely to invest in new games and digital content. That is, they'd be more likely to purchase used games and be unlikely to invest it cosmetics specifically because they are price sensitive consumers.
Sony lack of interest in increasing market share at the expense of profit make me not to expect too much from Sony. I expect drought of bundle quantities thus don't expect Sony going over their Target shipment. They didn't go over their Target last year also when they easily could have.3.9m is inline with the actual FY shipment they planned but it is glad to see they are increasing their forecast to 17.5m.
I believe Sony will end shipping 18m or more this year now with the $199 PS4.
There are so many ways to monetize games now and Sony's main franchises are huge now. Wow.The new operating income forecast for the year in the game business is pretty insane. I mean, relative to where it started. They were forecasting 190bn yen at the end of the last fiscal year, bumped it to 250bn yen at the end of the first quarter, now bumped to 310bn yen.
For some perspective - if they meet that target, the cumulative operating income during these six years of the PS4's life (741.1bn yen) will exceed the cumulative loss of the seven years of the PS3 (443bn yen, ish?) and the cumulative profit of the five years of PS2 (264bn yen), combined. With another FY of PS4 to go.
The new operating income forecast for the year in the game business is pretty insane. I mean, relative to where it started. They were forecasting 190bn yen at the end of the last fiscal year, bumped it to 250bn yen at the end of the first quarter, now bumped to 310bn yen.
For some perspective - if they meet that target, the cumulative operating income during these six years of the PS4's life (741.1bn yen) will exceed the cumulative loss of the seven years of the PS3 (443bn yen, ish?) and the cumulative profit of the five years of PS2 (264bn yen), combined. With another FY of PS4 to go.
At the risk of putting words in his mouth, Kyser73's point is that the people coming in at the lower prices are those that are less likely to invest in new games and digital content. That is, they'd be more likely to purchase used games and be unlikely to invest it cosmetics specifically because they are price sensitive consumers.
This is exactly what I said, thank you.
Clearly Sony have decided that hitting volume over holiday is a goal, and my god they're going to hit it and more with that Spidey bundle!
I don't think this is right and I think there is no study to sustain this claim
And with the $199 Spider-Man bundle confirmed, it seems Sony tends to privilege volume sales this black friday
Well, this makes Singstar making a comeback a more likely scenario.It's a music publishing company. They bought it this year. With that Sony is close to being a monopoly in the music industry. Think of an artist, chances are Sony owns the rights now.
damn, that mobile operating income tho - literally wiped out what they made in insurance (their 2nd highest earner). I remember Insurance was their highest earner before PS4. Damn.It's really important to emphasize again how ridiculously important the video games segment has become to Sony Corporation.
That's crazy :OThe new operating income forecast for the year in the game business is pretty insane. I mean, relative to where it started. They were forecasting 190bn yen at the end of the last fiscal year, bumped it to 250bn yen at the end of the first quarter, now bumped to 310bn yen.
For some perspective - if they meet that target, the cumulative operating income during these six years of the PS4's life (741.1bn yen) will exceed the cumulative loss of the seven years of the PS3 (443bn yen, ish?) and the cumulative profit of the five years of PS2 (264bn yen), combined. With another FY of PS4 to go.
damn, that mobile operating income tho - literally wiped out what they made in insurance (their 2nd highest earner). I remember Insurance was their highest earner before PS4. Damn.
also, holy guacamole their expenses on games is 400+ million?
If we assume $140 COGS per PS4 base, then that's about $550 million USD. Now, I understand the Pro very likely has a higher COGS, but I doubt it's more than 30% more. So I think their COGS for PS4 overall is likely under $800 million USD. What is Sony doing with the other $3.2 billion USD?All of the amounts listed in that are in billions of yen (see top right corner), so their expenses for that period are 459.5 billion yen ($4,057,392,636 Dollars). I'd imagine a significant portion of that is just the bill of materials for 3.9 million PS4s.
If we assume $140 COGS per PS4 base, then that's about $550 million USD. Now, I understand the Pro very likely has a higher COGS, but I doubt it's more than 30% more. So I think their COGS for PS4 overall is likely under $800 million USD. What is Sony doing with the other $3.2 billion USD?
Running world wide Sony game development studios ?If we assume $140 COGS per PS4 base, then that's about $550 million USD. Now, I understand the Pro very likely has a higher COGS, but I doubt it's more than 30% more. So I think their COGS for PS4 overall is likely under $800 million USD. What is Sony doing with the other $3.2 billion USD?
Employees, marketing, maintenance costs (e.g. server infrastructure for PSN, actual buildings).
Yes. I get that. Just curious about the distribution of the expenses.
damn, that mobile operating income tho - literally wiped out what they made in insurance (their 2nd highest earner). I remember Insurance was their highest earner before PS4. Damn.
also, holy guacamole their expenses on games is 400+ million?
Yes. I get that. Just curious about the distribution of the expenses.
100M in 2019 confirmed. For real
I'd be shocked if they bring out ps5 in 19, there's no need to, ps4 still selling like hotcakes. No way they going to want to transition earlier than 20-21