Status
Not open for further replies.

Saucycarpdog

Member
Oct 25, 2017
16,898
wccftech.com

PS5 Sales Will "Gradually Decline", Sony Expects; PS Business Model Has "Significantly" Changed Since PS4

Sony expects PS5 sales to gradually decline as the console has entered the second half of its console cycle.
During the conference call with investors, Sony talked about PS5 sales with the company's financial General Manager, Sadahiko Hayakawa, saying that the PlayStation business model has significantly changed since the release of the console's predecessor - the PlayStation 4.

In previous generations, including that of the PS3, Sony was focused on increasing software sales in relation to new hardware. According to the executive, the PS4 console cycle can be seen as a transition period to a business model focused on platform playtime. "Looking at the console cycle, we think that PlayStation business model has changed significantly since the launch of the PS4", Hayakawa told investors.

"The business model up to and including the PlayStation 3 was focused on increasing the number of software units sold in relation to newly sold hardware for each console generation. After a transition period during the PS4 generation, the PS5 model has shifted to where playtime on platform has increased due to expansion of the user community beyond console generations. Due to this change in business model, during the PS4 for generation, we were able to significantly grow profits in this segment, thanks to rapid digitalization and the expansion of network services."

"As we enter the second half of the console cycle, we expect the number of new PS5 units sold to gradually decline. However, by steadily maintaining and expanding the consistently increased number of active users and user engagement while also strengthening control over business costs, we believe that we will be able to steadily increase sales and profits on the PS platform going forward."
 

entremet

You wouldn't toast a NES cartridge
Member
Oct 26, 2017
61,727
I'm not a fan of this, but that's business for you.

While I do like the hardware, I've been unsatisfied with PlayStation Studios output.
 

Agni Kai

Member
Nov 2, 2017
7,239
I sometimes feel I'd have been better skipping this gen, but then I remember Returnal exists. Still, the thought remains.
 

AzorAhai

Member
Oct 29, 2017
6,867
I'm not a fan of this, but that's business for you.

While I do like the hardware, I've been unsatisfied with PlayStation Studios output.

Same. That said it's an industry problem and not a Sony problem.

Edit: yooo I wanted to edit my previous message, turns out the mobile app can open both the editing box and the new message box at the same time?!
 

Bansai

Teyvat Traveler
Member
Oct 28, 2017
11,504
User Warned: Platform Warring
having a deja vu, could swear there was this other console manufacturer that shifted to engagement and it didn't go so well
 
Oct 30, 2017
8,796
That makes sense.

Raw hardware sales metrics are becoming less relevant with time.

The article also mentions that software attach rates used to be the measurement of platform engagement. That metric is also losing relevance with subscriptions and live service titles dominating the industry.
 

J 0 E

Member
Oct 27, 2017
7,447
So, nothing has really changed since this model has been in use at SIE for at least a decade.
 

Rowsdower

Shinra Employee of The Wise Ones
Avenger
Oct 27, 2017
17,432
Canada
The reality is a lot of casual's are just playing one to two games all the time and that's it. Makes sense to make GAAS's that you can just update every so often. It's why they planned 12 and were looking for just a few hits.

In a few years it'll just be Mario and Fortnite. Joking, but sometimes it does feel like it.
 

oni-link

tag reference no one gets
Member
Oct 25, 2017
16,177
UK
Damn, that sucks, but it sadly seems like that's the way things are going
 

kxs

Member
Jul 25, 2022
371
It's what the market wants.

People are playing the same half dozen or so games on PS5.

That doesn't mean AAA single player is dead. It just means we will see less of it.
 

Super

Studied the Buster Sword
Member
Jan 29, 2022
7,945
Full context.

IMG_9283.png



IMG_9284.png

Saucycarpdog please threadmark this post.
 
Last edited:

Izanagi89

"This guy are sick" and Corrupted by Vengeance
Banned
Oct 27, 2017
15,206
This sounds…normal? Lol

However, by steadily maintaining and expanding the consistently increased number of active users and user engagement while also strengthening control over business costs, we believe that we will be able to steadily increase sales and profits on the PS platform going forward."
 

--R

Being sued right now, please help me find a lawyer
Member
Oct 25, 2017
13,214
"The business model up to and including the PlayStation 3 was focused on increasing the number of software units sold in relation to newly sold hardware for each console generation. After a transition period during the PS4 generation, the PS5 model has shifted to where playtime on platform has increased due to expansion of the user community beyond console generations. Due to this change in business model, during the PS4 for generation, we were able to significantly grow profits in this segment, thanks to rapid digitalization and the expansion of network services."

I don't think the headline is what it actually says? Looks more like that instead of just focusing on selling consoles and basically restarting from 0 at each generation, now the community is there between generations and that keeping them playing is more important than just selling more consoles.
 

Yogi.

Member
Feb 3, 2023
503
When those 2 gacha games' microtransactions (genshin and honkai) make you more money than a ff7 remake trilogy - what else are they gonna do? Still makes me sad as hell though.
 
Oct 30, 2017
8,796
having a deja vu, could swear there was this other console manufacturer that shifted to engagement and it didn't go so well
Sony is citing their first party offerings driving platform engagement and profits.

Sony is actively betting on their studios. That's the sort of bet I want to see.

They aren't betting on an unproven subscription model and publisher acquisitions to drive engagement.

But yes, driving engagement within their user base is the path to increasing their profits. This makes sense. Folks who spend their time actively on the system are going to buy games, subscriptions, and add on content. All of which are profitable ventures for PlayStation.
 

IIFloodyII

Member
Oct 26, 2017
24,774
PSN is king basically, not really a new thing or surprising, but definitely think stuff like console gens will just be a thing of the past for the most part now. Like a PS5 will be a low end option eventually, instead of "last gen".
 

St. Eam the 3rd

â–˛ Legend â–˛
Member
Aug 18, 2022
2,662
Yep, decline was already announced and totally natural after peak year(18m is also a nice soft decline imo).
Increasing engagement sounds like the same problem gaas games can have in other much bigger spaces(mobile and Pc), people time aren't infinite andmany gaas will compete for people attention and time. People will not have time for other softwares and with a limited audience eventually other gaas games will be ignored.
The player base problem its been addressed by pc initiative already, but the gaas nature is to lock players time and money for multiple years, this means will be easy for players to see the benefit to play those games on pc rather than ps5 imo(if they make you pay for online of course, but I'm not sure if offline gaas exists honestly:)).
 

jroc74

Member
Oct 27, 2017
29,742
I don't think the headline is what it actually says? Looks more like that instead of just focusing on selling consoles and basically restarting from 0 at each generation, now the community is there between generations and that keeping them playing is more important than just selling more consoles.
Almost reads like they will continue the longer cross gen period each new generation.

I think this was expected with the longer dev times.
 

Helix

Mayor of Clown Town
Member
Jun 8, 2019
24,517
they are just saying that they will have to expand efforts in order to help with better engagement considering they know that the reason why PS4-PS5 transition did so well is mainly due to how seamless it all was, they will ofc try to keep those customers engaged. It doesn't mean "BOOM SINGLE PLAYER GAMES don't matter, we are all in on GaaS".
 
Jun 1, 2023
755
This seems weird? I'd figure things like playtime & engagement are already key metrics for practically any gaming company (platform operator, publisher etc).
 
Status
Not open for further replies.