PlayStation generates the most revenue for Sony, but still they refuse to heavly invest in it

Etifilio

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27 Jun 2023
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look at the diference between Pictures and Gaming, but they want to invest $26B in Paramount instead of buying IPs and big studios for PlayStation

GOQzeLlbsAAZnsF
 

Nhomnhom

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This is what I've been talking about for so long, what a stupid company. Idiots want to buy Paramount and drag PlayStation down even more.

They seem afraid to be seen as a gaming company as if there was something wrong with it. Even when it comes to their movies and TV that they make for themselves the stuff that is working is coming from PlayStation.
 
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Etifilio

Etifilio

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27 Jun 2023
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This is what I've been talking about for so long, what a stupid company. Idiots want to buy Paramount and drag PlayStation down even more.

They seem afraid to be seen as a gaming company as if there was something wrong with it. Even when it comes to their movies and TV that they make for themselves the stuff that is working is coming from PlayStation.
the worst part is that they're using PlayStation money to buy Paramount, it would not be possible to have 26B to spend without their biggest revenue/profit generator, meanwhile... they're losing Square Enix...
 

Nhomnhom

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the worst part is that they're using PlayStation money to buy Paramount, it would not be possible to have 26B to spend without their biggest revenue/profit generator, meanwhile... they're losing Square Enix...
It all just stupid, a bunch of old guys that don't see the value of video game and have no confidence in their business despite their privileged position.

The guy in the leaked emails to Jim Ryan mocking Sony for focusing on electric cars instead of PlayStation was 100% correct.
 

Systemshock2023

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With Xbox out of the picture and Nintendo not in the power game they can reap the rewards without much investments.

I see we will end up having 3 main competitors in gaming with their own specific target market and few overlaps. re.

Nintendo: For folks interested in Nintendo IP, family friendly games and portable gaming. Weak HW without access to big third party games and modern online gaming.Blue ocean strategy as they are cornered in a very specific niche. 80 percent of their revenue comes from first party softwa

Sony: For core gamers. Good price to performance value (for now) and has access to big third party games and good online multiplayer.

PC gaming: for enthusiasts. Largest catalog of games, E sport oriented and specific genres. Modding. Emulation. Flexibility.Steep price to performance and less ease of use vs consoles.
 
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Danja

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It all just stupid, a bunch of old guys that don't see the value of video game and have no confidence in their business despite their privileged position.

The guy in the leaked emails to Jim Ryan mocking Sony for focusing on electric cars instead of PlayStation was 100% correct.
Oh what was this leaked email? Anywhere I can read it?
 

Evilnemesis8

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The reason why they're not investing is that even when revenue grew rapidly, margins still stayed extremely low.
This is troubling for a business.
Because at any point revenue growth could stall and margins would fall drastically as a result.
 

shrike0fth0rns

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look at the diference between Pictures and Gaming, but they want to invest $26B in Paramount instead of buying IPs and big studios for PlayStation

GOQzeLlbsAAZnsF
They literally double the size of the gaming division since this gen began. What do u mean thru refused to invest in it? Invest in it is more than just buying up studios they do a lot of stuff on the back end too. They bought several companies not related game development that will play a role in enhancing the ps experience such as audeze, isize,
look at the diference between Pictures and Gaming, but they want to invest $26B in Paramount instead of buying IPs and big studios for PlayStation

GOQzeLlbsAAZnsF
nonsense! Sony has double the size of sie since the gen began also invest in your gaming division isn't just bout buying studios u also have to invest a lot in the tech and other adjacent parts of your business that helps push innovation, that's they bought isize, audeze, repeatgg, invested evo, investing in revolver, epic, Chiba and indian hero and its Africa games initiatives. They are even building at least 1 new team internal. Even the paramount acquisition would be a boost to the gaming business by giving ps access to ip and production capacity to its cross media gaming initiatives. Some u guys just want ps to waste money on big name studios so u can talk about it on social media. That's Xbox fan behavior and look where that got Microsoft. Look at embracer even take two is hurting after too many acquisitions. Ubguysvneedvto chill out and wait for games from the studios they alrdt bought before u start complaining about they need more acquisitions.
 

Nhomnhom

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Oh what was this leaked email? Anywhere I can read it?
It's from the leaks of the ABK acquisition, Jim Ryan is talking to a buddy that used to work at Sony or something like that and he makes a joke about Sony focusing on electric cars.
 
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Etifilio

Etifilio

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27 Jun 2023
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They literally double the size of the gaming division since this gen began. What do u mean thru refused to invest in it? Invest in it is more than just buying up studios they do a lot of stuff on the back end too. They bought several companies not related game development that will play a role in enhancing the ps experience such as audeze, isize,

nonsense! Sony has double the size of sie since the gen began also invest in your gaming division isn't just bout buying studios u also have to invest a lot in the tech and other adjacent parts of your business that helps push innovation, that's they bought isize, audeze, repeatgg, invested evo, investing in revolver, epic, Chiba and indian hero and its Africa games initiatives. They are even building at least 1 new team internal. Even the paramount acquisition would be a boost to the gaming business by giving ps access to ip and production capacity to its cross media gaming initiatives. Some u guys just want ps to waste money on big name studios so u can talk about it on social media. That's Xbox fan behavior and look where that got Microsoft. Look at embracer even take two is hurting after too many acquisitions. Ubguysvneedvto chill out and wait for games from the studios they alrdt bought before u start complaining about they need more acquisitions.
they refuse to HEAVLY invest in PlayStation, the proportion of acquisitions their other divisions get compared to PlayStation is simply unfair to say the least, they simply don't have enough studios to sustain a division like PlayStation, not when AAA games are taking 5 years + to develop, they're losing all their third party partners this gen such as Bethesda (Deathloop, Ghostwire Tokyo), Activision (Call Of Duty, Crash, Spyro) and now Square Enix (Final Fantasy, Kingdom Hearts), then when someone like MS goes and buys more publishers they'll go cry for regulatory bodies, it's one thing to acquire studios like Housemarque, Bluepoint, Haven and Firewalk, is another completely different thing to acquire a publisher, and if they want to grow significantly, they'll need at least one major publisher, being T2 for a major franchise like GTA and a Mobile portion or someone smaller like Square Enix or FromSoftware, 2023/2024 were clear signs for lack of first party content


and no, i don't want Sony to waste money on big studios, i want them to secure more IP for PlayStation to be even stronger in the future, you mentioned EVO, how come they own the biggest platform for fighting games but don't have a fighting franchise of their own? PlayStation Studios still lack a lot of genres that simply can't be filled with these smaller studios they're buying, buying Paramount and investing so much money in Pictures when they desperatly need gaming content and profit triple the amount with gaming than pictures, specially after losing so many third party partners is not adequate, and no, they won't use Paramount IPS in gaming, they don't even use Columbia IPs that they have, let alone Paramount
 
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Etifilio

Etifilio

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The reason why they're not investing is that even when revenue grew rapidly, margins still stayed extremely low.
This is troubling for a business.
Because at any point revenue growth could stall and margins would fall drastically as a result.
i'm sorry but how can they grow if they don't invest? 16 studios to sustain an 8 year lifecycle of a console with AAA games taking 5+ years to develop is simply not enough, there'll be dry years like 2023/2024 first party wise because of it, the whole point of investing and consolidating is to continue to see growth both in profit and revenue
 

Wing84

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How do you know Sony isn't investing into its current studios? How do you know what discussions and negations are happening at Sony? How do you know of the regulatory fears Sony's legal teams are having?

This industry might have the most undeservedly confident armchair analysts. What's important for Sony right now is to figure out how to lower development costs and how to lower the time between a game getting the green light and the game releasing. Acquisitions for studios that already sell mostly on their platform and their direct competitor collapsing is beyond dumb and just fanboy list fuel nonsense.
 

Jim Ryan

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It's ridiculous and they still made SIE pay for half of Bungie out of their annual revenue, instead of just using cash reserves.

Square is a deal at the moment and sony have barely any development in Japan.

They have no fighting game in the first party and From should have been a huge target for them.

They need to start looking at PC and try to make PlayStation a more enticing place to be for more gamers.
 

Evilnemesis8

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i'm sorry but how can they grow if they don't invest? 16 studios to sustain an 8 year lifecycle of a console with AAA games taking 5+ years to develop is simply not enough, there'll be dry years like 2023/2024 first party wise because of it, the whole point of investing and consolidating is to continue to see growth both in profit and revenue

You're talking like they haven't grown in the last few years.
Bungie was major acquisition
Most of their big marquee studios like ND/Guerilla/Santa Monica have doubled in size between their last PS4 release and now, even with the layoffs. They're acquired a couple studios as well and those two have grown in size.

All of that and almost none of the fruits have paid off so far, why should they invest even more?
 
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Etifilio

Etifilio

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You're talking like they haven't grown in the last few years.
Bungie was major acquisition
Most of their big marquee studios like ND/Guerilla/Santa Monica have doubled in size between their last PS4 release and now, even with the layoffs. They're acquired a couple studios as well and those two have grown in size.

All of that and almost none of the fruits have paid off so far, why should they invest even more?
all of that? they literally did the bare minimum, not only ND/Santa Monica should've doubled in size, ALL their singleplayer AAA studios should, Bungie is one of the worst acquisitions in the history of the gaming industry, it literally serves playstation NOTHING
 
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Nhomnhom

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The reason why they're not investing is that even when revenue grew rapidly, margins still stayed extremely low.
This is troubling for a business.
Because at any point revenue growth could stall and margins would fall drastically as a result.
Yep, gotta invest on more Madame Web and Morbius instead.

It's ridiculous and they still made SIE pay for half of Bungie out of their annual revenue, instead of just using cash reserves.

Square is a deal at the moment and sony have barely any development in Japan.

They have no fighting game in the first party and From should have been a huge target for them.

They need to start looking at PC and try to make PlayStation a more enticing place to be for more gamers.
Regardless of how poor SE leadership is Sony doesn't deserve SE. FFXVI and FFVII Rebirth alone did a lot more to justify the purchased of the PS5 than pretty much all of PlayStation studios.

Sony deserves to become the next Xbox division, getting completely stuck and desperate for a few years just to then being wiped out.
 
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voke

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Yep, gotta invest on more Madame Web and Morbius instead.


Regardless of how poor SE leadership is Sony doesn't deserve SE. FFXVI and FFVII Rebirth alone did a lot more to justify the purchased of the PS5 than pretty much all of PlayStation studios.

Sony deserves to become the next Xbox division, getting completely stuck and desperate for a few years just to then being wiped out.
I’m just confused on why they should end up like Xbox. They do the one thing MS could never do right, make new games.
 

Evilnemesis8

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all of that? they literally did the bare minimum, not only ND/Santa Monica should've doubled in size, ALL their singleplayer AAA studios should, Bungie is one of the worst acquisitions in the history of the gaming industry, it literally serves playstation NOTHING

Not all studios are able to manage doubling their sizes at the flip of a switch.
How many stories about failed studio expansions have we seen over the years?
Heck Naughty Dog has flip flopped between being a dual project/single project studio multiple times because they ran into production issues.

Yep, gotta invest on more Madame Web and Morbius instead.

Regardless of how poor SE leadership is Sony doesn't deserve SE. FFXVI and FFVII Rebirth alone did a lot more to justify the purchased of the PS5 than pretty much all of PlayStation studios.

Long time FF buyers have a high affinity with early PS buyers, this is why you don't see much growth when it comes to 3 Day/1 Week sales of FF games later in the generation when the userbase has grown by a lot.
They would be there regardless.

But yes, the movie division has always been useless at their jobs.

It's the casuals you have to convince.
 
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Nhomnhom

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I’m just confused on why they should end up like Xbox. They do the one thing MS could never do right, make new games.
Their internal studios haven't been doing that in a while and it doesn't look like they'll be releasing big new games anytime soon.
 

Yurinka

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look at the diference between Pictures and Gaming, but they want to invest $26B in Paramount instead of buying IPs and big studios for PlayStation

GOQzeLlbsAAZnsF
As said in that slide, their entertainment divisions generate now 60% of their revenue. Later in the Q&A, Totoki mentions that 60% of the budget spent in the previous mid-range plan (3 years period ended in March 2024) investment & acquisitions was on their entertainment divisions.

It's ridiculous and they still made SIE pay for half of Bungie out of their annual revenue, instead of just using cash reserves.
No, the Bungie acquisition -and the other ones made in the last 3 years- was paid with a budget they had for investment and acquisitions for that period. That budget was build with money from cash reserves, as the one they built for the current 3 years period.

What SIE is paying now from Bungie and other recent acquisitions are "acquisition related costs", not the acquisition itself. They are other related costs, as could be retention bonuses, hirings to grow the acquired company to the point they want, maybe new offices or expansion of their offices to put there more people, meetings or training sessions to integrate them, their workflow and tech within the company, etc.
 
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