Metro RF: The PS5 price hike is the final mistake for Sony and the PlayStation

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Sleepy Brown

Sleepy Brown

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5 Jul 2022
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If anybody could go 3rd party, that's not Sony (the leader by a country mile, 2021 revenue is $22.67 bn vs Nintendo $15.79 bn, not even close)....
Profit (you know, the money they actually made), sold consoles, sold 1st party software? Nintendo.
2022? Nintendo.
Nintendo is the marketleader.

Sony is going all out regarding Live-Service games so they can launch their games on Xbox, PC, Mobile and next-gen Switch to sell microtransactions/DLCs.

It started with MLB The Show, it will continue with Destiny 2, Matter and all the other 10+ Live-Service games.
Sony realized that MS is serious now. Soon MS will have 3 publishers. Nintendo has the IP power since forever.
Then you have Sony with only 5 studios worth of creating successful AAA games.
Naughty Dog (Uncharted and TLOU)
Guerrilla Games (Horizon)
Insomniac Games (working on foreign licenses because they can't create their own successfl AAA IPs anymore / Spider-Man and Wolverine)
Santa Monica Studio (God of War)
Sucker Punch (Ghost of Tsushima)

The rest of Sony's PlayStation Studios are flops, failing to create AAA games with commercial and critically success.
And because Sony doesn't have to money to buy publishers with successful IPs (like Microsoft) or the talent to create multiple successful blockbuster IPs (like Nintendo) Jim Ryan decided it's time to drop out of the console biz. This is why you see Sony milking the PS community right now and why he is focusing on Live-Service games:
4-The-Payers.jpg


PS5 is literally "4 The Payers" this gen. Until Sony drops out of the console race in a few years and becomes a 3rd party publisher.
Jim Ryan knows what he is doing. It's all according to his plan:
PlayStation the 3rd party publisher, creating games for PC, Xbox, Mobile and next-gen Switch.
 

azertydu91

Active member
4 Jul 2022
110
153
Profit (you know, the money they actually made), sold consoles, sold 1st party software? Nintendo.
2022? Nintendo.
Nintendo is the marketleader.

Sony is going all out regarding Live-Service games so they can launch their games on Xbox, PC, Mobile and next-gen Switch to sell microtransactions/DLCs.

It started with MLB The Show, it will continue with Destiny 2, Matter and all the other 10+ Live-Service games.
Sony realized that MS is serious now. Soon MS will have 3 publishers. Nintendo has the IP power since forever.
Then you have Sony with only 5 studios worth of creating successful AAA games.
Naughty Dog (Uncharted and TLOU)
Guerrilla Games (Horizon)
Insomniac Games (working on foreign licenses because they can't create their own successfl AAA IPs anymore / Spider-Man and Wolverine)
Santa Monica Studio (God of War)
Sucker Punch (Ghost of Tsushima)

The rest of Sony's PlayStation Studios are flops, failing to create AAA games with commercial and critically success.
And because Sony doesn't have to money to buy publishers with successful IPs (like Microsoft) or the talent to create multiple successful blockbuster IPs (like Nintendo) Jim Ryan decided it's time to drop out of the console biz. This is why you see Sony milking the PS community right now and why he is focusing on Live-Service games:
4-The-Payers.jpg


PS5 is literally "4 The Payers" this gen. Until Sony drops out of the console race in a few years and becomes a 3rd party publisher.
Jim Ryan knows what he is doing. It's all according to his plan:
PlayStation the 3rd party publisher, creating games for PC, Xbox, Mobile and next-gen Switch.
Now do 1st party output so far just 4 fun...
 

Dr Bass

The doctor is in
Founder
20 Jun 2022
2,042
3,450
Profit (you know, the money they actually made), sold consoles, sold 1st party software? Nintendo.
2022? Nintendo.
Nintendo is the marketleader.

Sony is going all out regarding Live-Service games so they can launch their games on Xbox, PC, Mobile and next-gen Switch to sell microtransactions/DLCs.

It started with MLB The Show, it will continue with Destiny 2, Matter and all the other 10+ Live-Service games.
Sony realized that MS is serious now. Soon MS will have 3 publishers. Nintendo has the IP power since forever.
Then you have Sony with only 5 studios worth of creating successful AAA games.
Naughty Dog (Uncharted and TLOU)
Guerrilla Games (Horizon)
Insomniac Games (working on foreign licenses because they can't create their own successfl AAA IPs anymore / Spider-Man and Wolverine)
Santa Monica Studio (God of War)
Sucker Punch (Ghost of Tsushima)

The rest of Sony's PlayStation Studios are flops, failing to create AAA games with commercial and critically success.
And because Sony doesn't have to money to buy publishers with successful IPs (like Microsoft) or the talent to create multiple successful blockbuster IPs (like Nintendo) Jim Ryan decided it's time to drop out of the console biz. This is why you see Sony milking the PS community right now and why he is focusing on Live-Service games:
4-The-Payers.jpg


PS5 is literally "4 The Payers" this gen. Until Sony drops out of the console race in a few years and becomes a 3rd party publisher.
Jim Ryan knows what he is doing. It's all according to his plan:
PlayStation the 3rd party publisher, creating games for PC, Xbox, Mobile and next-gen Switch.
You know ... you often have to pay to get higher quality. I have no problem paying higher prices for either Sony or MS IF they are delivering. Sony and Nintendo are currently delivering, and Microsoft isn't. So many people do not get this but it's why people tend to pay more for Apple products and have WAY higher satisfaction than paying less for a PC. I also work in software engineering and would never use MS products for that task by choice, unless I was making Windows games.

If you pay a little more and get great, great games, and you pay a little less and get hardly anything ... which is the better value?
 

Sircaw

Pro Flounder
Moderating
20 Jun 2022
6,951
12,204

The PS5 price hike is the final mistake for Sony and the PlayStation – RF​










Source

Pretty much spot on.
But it's not really a "mistake". Sony knows what they are doing. It's their current plan.
PlayStation can't compete anymore. And SIE/Jim Ryan knows this. This is the reason why Jim Ryan is preparing SIE and PlayStation to become a 3rd party publisher, releasing PlayStation games on PC, Mobile, next-gen Switch and Xbox.
The PS5 will be Sony's last console.

The signs were all there:
10€ for cross-gen upgrades.
80€ for games.
80€ for remakes of PS4 remasters.
550€ for a PS5 console.
No communication at all with the PS community
Barely any showcases anymore (all hands on the GaaS deck / No-shows during E3 time, SGF, or Gamescom)


They are milking the PlayStation community dry one last time.
- SIE and PlayStation can't compete anymore. Sony saw how Microsoft acquired publishers. And MS will buy more publishers after the Activision-Blizzard deal goes through in a few months.
- Nintendo is dominating with the hybrid-console model and their powerful IPs.
So Sony is focusing on Live-Service games now, to sell microtransactions on all platforms in the near future (PC, Xbox, Next-gen Switch and Mobile). To become a 3rd party publisher like EA or Ubisoft.
This is Sony's future. Jim Ryan knows this. And he's preparing SIE to drop out of the console race next gen.
Welcome back @Sleepy Brown, not seen you about much, where have you been?,

And your 100% right about Sony being doomed, i have been trying to flog my ps5 for a tenner but no one wants to touch it.
 

Rivet

Active member
25 Jun 2022
110
292
Profit (you know, the money they actually made), sold consoles, sold 1st party software? Nintendo.
2022? Nintendo.
Nintendo is the marketleader.

Sony is going all out regarding Live-Service games so they can launch their games on Xbox, PC, Mobile and next-gen Switch to sell microtransactions/DLCs.

It started with MLB The Show, it will continue with Destiny 2, Matter and all the other 10+ Live-Service games.
Sony realized that MS is serious now. Soon MS will have 3 publishers. Nintendo has the IP power since forever.
Then you have Sony with only 5 studios worth of creating successful AAA games.
Naughty Dog (Uncharted and TLOU)
Guerrilla Games (Horizon)
Insomniac Games (working on foreign licenses because they can't create their own successfl AAA IPs anymore / Spider-Man and Wolverine)
Santa Monica Studio (God of War)
Sucker Punch (Ghost of Tsushima)

The rest of Sony's PlayStation Studios are flops, failing to create AAA games with commercial and critically success.
And because Sony doesn't have to money to buy publishers with successful IPs (like Microsoft) or the talent to create multiple successful blockbuster IPs (like Nintendo) Jim Ryan decided it's time to drop out of the console biz. This is why you see Sony milking the PS community right now and why he is focusing on Live-Service games:


PS5 is literally "4 The Payers" this gen. Until Sony drops out of the console race in a few years and becomes a 3rd party publisher.
Jim Ryan knows what he is doing. It's all according to his plan:
PlayStation the 3rd party publisher, creating games for PC, Xbox, Mobile and next-gen Switch.

Market leaders are evaluated with revenue or market cap, not quarterly profit, otherwise very small companies could be "market leader" and any bad quarter would change the order (and Xbox would be a non existent dwarf with all their losses), all of which don't make sense obviously. Sony profit is usually at the top or very near the top anyway. They're the undisputed market leader. Nintendo isn't even in the same ball park.

Nintendo market cap is 7410 billion yen. Sony is twice that size with 14020 billion yen, so that's not really close, even when you remove non gaming businesses...

What you think of their strategy is irrelevant. Their console has been sold out for years and they sold 21 million PS5 vs 13 million Xbox Series. They're #1 by a good margin, that's why they can do what they want. They have a lot of the best games and a lot of the best devs, that's what matters in that business. Though Nintendo games are nice too, especially for kids.
 
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24 Jun 2022
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However I do not agree with @Sleepy Brown on Sony going 3rd party.... they make no money on their games, so if the platform goes, so do the games and everything else.

But the bolded isn't true, otherwise they'd of just outright left the gaming business altogether. Their games bring in profit, it just seems, going by Jim's words anyway, for some it hasn't been enough to what Sony's shareholders want to justify what they feel like are increasing budgets for the marquee AAA games.

And that's why they've made some of the moves they've made. Sony going 3P, as in no longer making consoles, would potentially be a very big mistake because now they no longer make money off 3P sales, DLC or MTX. They no longer make money off peripherals, they are 100% at the mercy of other companies and the ecosystems those companies own (meaning if those companies decide they want to change some terms that equal less money for Sony, Sony just have to hold the line).

It also means less smaller, niche games. Astro's Playroom? That's dead. Little Big Planet and Dreams? Also dead. You would probably also see no PSVR2 meaning less VR games from Sony because they aren't trying to push their own hardware anymore, so less need for some of the more experimental games. So far other platform holders like Atari, SNK and Sega going 3P haven't really ever recaptured the creative power or presence in the industry they had during their height, why would it be any different for Sony?
 

Rivet

Active member
25 Jun 2022
110
292
I actually think this is possible.

That would be very dumb. They're market leaders by a good margin, and they make most of their money from the 30 % cut on any sale on their store + DLC and all. Would Apple give up on the cut on Apple Store ? Don't think so either. You have no reason to change a winning strategy. They bring their games to PC to both add easy money to the bank AND make new people aware of Sony games and ecosystem. Some of them will ultimately buy their games on the PSN Store and buy their console. Some of them will talk about those games to their friends. The others will continue buying Sony games on PC when the port releases 1 or 2 years later or something, and that's fine too. There's zero reason to go 3rd party for them.

Those who could go 3rd parties are the competitors, especially Xbox if GP isn't very successful (which looks likely from the first numbers we have). But then MS would probably prefer just selling everything and move on from gaming because without the cut on the store, profit margins are limited (which is the only reason MS still tries its luck on gaming ultimately).
 
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DarkMage619

Verified Gamepass Reseller
15 Jul 2022
106
115
If anybody could go 3rd party, that's not Sony (the leader by a country mile, 2021 revenue is $22.67 bn vs Nintendo $15.79 bn, not even close), it's Xbox. Game Pass to this day is a failure : it missed its latest MS target and they only sold 13 million consoles until now vs 21 million PS5 despite massive PS5 shortages, that's very very far from what they need to turn profit on Game Pass, let alone turn the profit they need to make it interesting for Microsoft. It's not looking good right now.

Still, if GP doesn't turn a hefty profit in a few years, MS would be more likely to try to sell everything and give up with the Xbox brand than going 3rd party. That's what their shareholders would ask them to do. Remember GP was a last ditch effort to finally make something valuable from the Xbox brand. They're in for big margins, MS doesn't care about low margin businesses (because their other businesses have big margins, so low margins effectively make their shareholders earn less money).
People have been saying this about Xbox for 20 years. They were always on the edge of dropping out of gaming. Give it up bro it won't happen. Thank goodness for that, I'd hate to see a uncontested Sony.
 

Bernd Lauert

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16 Jul 2022
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People have been saying this about Xbox for 20 years. They were always on the edge of dropping out of gaming. Give it up bro it won't happen. Thank goodness for that, I'd hate to see a uncontested Sony.
They'll be saying this even when Xbox inevitably becomes the market leader within the next couple of years. Pure copium 😁
 
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