You're conflating revenue and profit. Sony is looking to focus more on profit rather than just revenue, which is what you're not quite understanding. It's why they're decreasing the cost of 1st party games by reducing payroll and why they're focusing more on GaaS and PC (and eventually mobile). Because these things bring in more profit and continuous operating income.
By expanding to these markets they seek boosting both revenue and profits.
They reduced their manpower in around 8%, but after growing becoming 3-4x times bigger they were before. They just did cut some fat after a big growth before continuing growing, something most companies do after making acquisitions. And they continue hiring after it: in case of Bungie after firing 100 people they hired 400-500 more. Plus like any big company they also fire people in every studio every year, in the same way they also hire.
Same goes with cancelling a few games, it's something companies does frequently. In fact, Sony has now more game under development than they ever did. And not only because of GaaS or PC: their investment in console games are also growing and non-GaaS too. The investment on PC, GaaS or mobile is made on top of also growing their investments in their traditional business. So again, they are just cutting some fat after growing a lot before continuing growing.
So no, they are not decreasing the cost of the 1st party games. The opposite, they are highly growing them. GaaS are much more expensive than non-GaaS games. They are investing record numbers in 1st party, record numbers in 2nd party, in 3rd party and also for their game sub. Plus now they are investing more than before in PC and in mobile. They are just cutting some fat before continuing their growth.
Regading profitability, as always it depends. As of now they don't make a shit from mobile. Some mobile games are more profitable than other ones, as happens in PC or console. PC ports are pretty great ROI for them, but PC still generates for them less than 1/50 of their revenue, so still is only a small secondary revenue channel for them.
And much of that revenue comes from hardware sales that come at an operating loss... You continue to focus on revenue...
Hardware is not even a third of their revenue, and the loss they take for every unit is very small, and that loss gets way more than compensated for the extra revenue and profits generated with the games, game sub, accesories sold on average for each console.
And yes, I focus in hardware like any analyst in the world because it's by far the most important KPI. It's really stupid, shorminded and nonsensical to only focus on profit.
SIE doesn't have any profit issue at all. They are better than they always have been. It just temporally decreased a bit because they made many acquisitions, and because had a big peak of sales and they were selling them at a loss, while also having a record number of big projects being funded.
Having passed the peak years hardware sales will drop, so loses from them too: these consoles sold will sell games, so what generated loses last year now will generate profit. The record investment on gmes will result on record revenue and profit from them when released. And these costs in acquisitions will result in the mid term in more games so again more revenue and profit.
Again, focused on revenue.
Of course. If you analyze the performance of a company not focusing on its revenue you have no idea what are you talking about
It's profitable, but not enough to really push Sony to where they want to go. It's not offsetting hardware, marketing, R&D, enough.
Bullshit. Sony is in perfect shape, better than ever, better than any competitor and growing in all areas. They don't have any meaningful issue to address.
Sony just had to clean the house and cut some fat after growing a lot before to continue growing, and like any big company -particularaly tech ones- also making some damage control considering potential economical fuckery that may be coming with the dollar & western finantial system apparently collapsing soon, WWIII, global finantial crisis, NATO & allies economy committing suicide by isolating themselves from the BRICS, and others.
again why they're focusing more on GaaS and PC games rather than just console.
No, this is a lie.
GaaS is a minority of the games they have under development, and by far the focus of their business, revenue, profit, userbase, investment and development is in console and not in PC.
Helldivers beating out CoD, the best selling multiplat every year, just on PS5 single platform should put to rest ANY AND ALL multiplat fearmongering about how titles need to release everywhere to be successful.
Mat said that if not counting PC sales Helldivers 2 wouldn't be in the top 20. When also counting PC is when it's top 7.