billbil_kun: Horizon Forbidden West will soon be available on PC

Systemshock2023

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Something that many of you guys (conveniently) don't consider is that those exclusives sell millions on console because they have MASSIVE worldwide marketing campaigns behind. That mkt spend can be as high as the development budget at times. PC ports are just marketed by an entry on the PS blog or a small video on a state of play. Revenue is lower as less units are sold, but margins are much higher and that's what Sony is looking for: perpetual high margin revenue streams on new markets.

Its your choice. PC ports or Jimbo starting an Only Fans site. One way or another Sony is looking for new revenue streams outside of their core market. Because console sales have hit a cap long ago.
 
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Ludwig

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The PC ports only require a handful guys working during a few months, which is very cheap compared what it did cost to make the original PS versions.

That means each port will provide dozens of millions in profit, which is a big success. As of now the Spider-Man port sold around 1.9M copies wih only a few times being discounted a 25% or 33%. Ignoring discounts and removing the 30% cut, that would be $79M. And they won't remove the game today, it will continue selling.
Spiderman Sold 1.5 million copies on PC in 10 months as of 2023.5.24. Sony reported it made 52 million so where are you getting 79 million from.
Dozens of millions in profit. DOZENS? Not hundreds of millions. Porting games like HZD, TLOU, God of War, Returnal, Uncharted, and Days Gone only yielded them dozens of millions in profits, not hundreds of millions. At best, this is only enough to fund a single AAA game.


TLOU sold on PC around 1M and only had a single discounts a few days of 20%. Ignoring that discount and removing Valve's 30% that's $41M.
TLOU sold 368k on PC as of 2023.5.24 and it took 2 months to do that. Again where are you getting 1 millions from. Are you guessing? Sony reported 15 million in revenue.
So until now Sony made around $100M+ in profits (the cost of the port must have been very low) only with Spider-Man and TLOU PC ports. That's a big success. And they will keep selling specially once they get big discounts, since TLOU was released this March and Spider-Man barely a year ago. Plus they also have several ports more selling copies.
That's your guess. And its well under 100 million dollars in profits with Spider man and TLOU PC ports. The data we have from Sony doesn't support your claims.
 
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Banana

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Cool hand luke

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Something that many of you guys (conveniently) don't consider is that those exclusives sell millions on console because they have MASSIVE worldwide marketing campaigns behind. That mkt spend can be as high as the development budget at times. PC ports are just marketed by an entry on the PS blog or a small video on a state of play. Revenue is lower as less units are sold, but margins are much higher and that's what Sony is looking for: perpetual high margin revenue streams on new markets.

Its your choice. PC ports or Jimbo starting an Only Fans site. One way or another Sony is looking for new revenue streams outside of their core market. Because console sales have hit a cap long ago.
And yet it's PC gaming that's shrinking.
 
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Yurinka

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Spiderman Sold 1.5 million copies on PC in 10 months as of 2023.5.24. Sony reported it made 52 million so where are you getting 79 million from.
Dozens of millions in profit. DOZENS? Not hundreds of millions. Porting games like HZD, TLOU, God of War, Returnal, Uncharted, and Days Gone only yielded them dozens of millions in profits, not hundreds of millions. At best, this is only enough to fund a single AAA game.
TLOU sold 368k on PC as of 2023.5.24 and it took 2 months to do that. Again where are you getting 1 millions from. Are you guessing? Sony reported 15 million in revenue.

That's your guess. And its well under 100 million dollars in profits with Spider man and TLOU PC ports. The data we have from Sony doesn't support your claims.

The Spider-Man 1.5M units/$52M revenue and TLOUP1 368K sold ($15.5M) were posed in May, but these numbers are as of end of FY2022 (March 31, 2023, 8 months and a half of sales) for Spider-Man and as of April 23, 2023 for TLOU, less than a month of sales because it was released March 28.

image.png


Even if you only count until these days of the Sony report, $52M+$15M=$57M. And $557M are almost 5 dozens of millions. And ports only require a few guys working during a few months, so these are dozens of millions in profit.

But these games weren't removed from Steam. They kept selling since then.

The numbers I mentioned were rough sales estimates I made as of yesterday (around 5 months and a half for TLOU instead of less than a month and around 13 months for Spider-Man instead 8 months and a half). I made the Steam sales estimate that typically is more accurate for games like the Sony ports, which is multiply their user reviews by 25. This is the reason of why Spider-Man gave me around 1.9M instead of 1.5M and why TLOU gave me around 1M instead of 368K.

Then to get the revenue estimate I multiplied these sales units estimates for the game price to get the gross revenue, and then multiplied by 0.7 to remove Steam's 30% cut. That gave $79+$41M, around $120M. I said 'over 100M' instead because not all these units were sold at full price, since as I mentioned there were a few discounts in that period. So this is why my estimates are higher than the Sony reported numbers: because my estimates cover more time, but they are pretty much in line with Sony's numbers.

In any case, as can be seen in the Sony graph in the previous 3 fiscal years combined the Sony PC titles -all, not only these two- generated $365M of revenue to them. Which are hundreds of millions, not dozens.
 
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Yurinka

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And yet it's PC gaming that's shrinking.
Nah. PC, console and mobile had a covid bump and now went back to normality in CY22/23.

Outside that, console and PC market are pretty much stagnant while mobile continues to grow.

But still, PC market is way bigger than PS, and mobile way even more specially in Asia and particularly Japan. So since Sony needs extra revenue to pay their very expensive AAA it's smart to expand in PC and mobile specially if they want to grow in East Asia, which generates 40% of the worldwide game revenue specially thanks to China.

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image.png
 

Systemshock2023

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Take into account that steam cut is lower the more games you sell. And it wouldn't surprise me that they struck special revenue share deals with some of these big third parties such as Sony, Ms, Ubisoft and the like.

 

Yurinka

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Take into account that steam cut is lower the more games you sell. And it wouldn't surprise me that they struck special revenue share deals with some of these big third parties such as Sony, Ms, Ubisoft and the like.

These special prices for a few top publishers already existed when oficially it was a 30% for everybody. Same happens in console. Who knows what the Sony % is.
 

Cool hand luke

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Nah. PC, console and mobile had a covid bump and now went back to normality in CY22/23.

Outside that, console and PC market are pretty much stagnant while mobile continues to grow.

But still, PC market is way bigger than PS, and mobile way even more specially in Asia and particularly Japan. So since Sony needs extra revenue to pay their very expensive AAA it's smart to expand in PC and mobile specially if they want to grow in East Asia, which generates 40% of the worldwide game revenue specially thanks to China.

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Mobile yes, PC no.
 

Cool hand luke

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PC market is way bigger than PS.

See the graph I included in the post you quoted where appears the worldwide console vs PC revenue and remember that PS has almost half of the console market.
PC is not a singular market. There are different storefronts, OSes, and you need to invest in more expensive hardware to run games as well as a base console. I'm not sure what the software/hardware split is but remember Sony isn't going to bank hardware revenue on PC by porting their titles.
 

Yurinka

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PC is not a singular market. There are different storefronts, OSes, and you need to invest in more expensive hardware to run games as well as a base console. I'm not sure what the software/hardware split is but remember Sony isn't going to bank hardware revenue on PC by porting their titles.
Yes, PC is a single market and platform where people buy games, even if there are multiple stores around 80% of is sales are on Steam, and even if there's multiple OS over 95% are on Windows.

Here's their PC numbers so far:

image.png
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Here's their (PS) Hardware vs (PS) software split. Network Services is basically PS+ and "others" is PC+accesories:

rRM2r4Q.png


As you can see even if PC is highly growing, their main business continues being PS and particularly its software. Soon they'll make more money with PC than with let's say PS+. They already make more money with PC than with their PS physical games.
 
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Cool hand luke

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Yes, PC is a single market and platform where people buy games, even if there are multiple stores around 80% of is sales are on Steam, and even if there's multiple OS over 95% are on Windows.

Here's their PC numbers so far:

image.png
.

Here's their (PS) Hardware vs (PS) software split. Network Services is basically PS+ and "others" is PC+accesories:

rRM2r4Q.png


As you can see even if PC is highly growing, their main business continues being PS and particularly its software. Soon they'll make more money with PC than with let's say PS+. They already make more money with PC than with PS physical games.
I don't think you're getting it. I'm saying I don't know what the PC revenue hardware and software split is. And no, PC is not a single market any more than Console is regardless of how much you want to make it so.

Compare apples to apples, please.

You also don't know how to read financial statements. For FY22, Sony earned 193,439 million yen on physical game software. That translates to 1.3 billion USD. Is 250 million USD more than 1.3 billion?
 

Yurinka

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I don't think you're getting it. I'm saying I don't know what the PC revenue hardware and software split is. And no, PC is not a single market any more than Console is regardless of how much you want to make it so.
PC (Windows to be exact, because Linux or Mac is basically zero) is a market and consoles is another market. The industry considers as that and constantly talk about consoles, PC and mobile. An example is the graph I posted above.

PC is also considered a single platform, in the same way that PS5 is also considered a single platform.

Yes, there are many hardware variations and many PC stores, but the same Windows port work in all of them.

Regarding the PC hardware, the numbers I posted, and the common ones posted are only about games. Some time ago I saw PC hardware revenue numbers but it was something rare. There are tons of hardware companies each one with their own channels so it's basically impossible to properly track sales. With games instead is way easier because a few digital stores and retailer chains sell most of the units. But I don't know the PC hardware vs software split.

You also don't know how to read financial statements. For FY22, Sony earned 193,439 million yen on physical game software. That translates to 1.3 billion USD. Is 250 million USD more than 1.3 billion?
I meant their 'others' segment where PC games are included. But forgot there's the (PS+PC) accesories included there too. My bad. That 1.3B include both 3rd and 1st party in PS, not only 1st party.

As I remember Sony recently mentioned they were going to change how they report these things, so hopefully in the next quarter or fiscal year they'll report PC software, accesories and subscriptions separated from the PS ones.
 
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Yurinka

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Steam is a platform, PS5 is a platform.
Steam is a store, like PSN. PC and PS5 are platforms.

And to be clear, we agree that PC for Sony is nowhere near any other segment of theirs, right? Not even more than the declining physical software market.
Well, depends. That $1.3B of PS physical games sold was 1st+3rd party.

16.46% of these games sold were 1st party, meaning 1st party games sold in physical for PS generated around $214M in revenue last FY if the average price of 1st and 3rd party games sold in PS is pretty similar.

Meaning that for 1st party games, Sony made more revenue selling PC games than selling physical (1st party) PS games.
 
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