Crazy how Nintendo is making half of the profits PS makes w 1/3 of the revenue & lacking a massive amount of 3rd party largely lacking prominent live service games by 3rd party.
How much of that profit from PS is actually coming from PS studios themselves. My exact concerns if I was totoki/herman in the absorbent reliant on 3rd party bring the profits & not actual PS whether it’s is lack of studios or output singleplayer or the lack of live service that’s alarming that there fine w PS profits ok PS platform being mainly from 3rd party w clear issues while in the same time porting games to PC diminishing its own platform & storefront & bolstering competitors just to try & bring a small profit from those other platform.
Maybe buy & convert 3rd party into 1st party but PS should be striving for near if not higher then 50% of the profits being made on the PS storefront coming from PS studios & 3rd party being the cherry on top which has not been the case of PS ever.
Maybe this guy is starting to realize why Sony needs to make short term profits.
They don't have the money to buy 3rd parties right now. They're a small fish. You buy a major 3rd party not only do you have to pay the premium on the stocks, but you also absorb their debt and operating cost.
Sony absolutely has to reach a period where they're more reliant on 1st party sales, but you also forget that they're already dominating the sales conversation as it relates to Xbox, so you're gaining nothing from the foreclosure on Xbox and you're trading probably 25% of revenue from royalties for an additional 60-65% just to take on the risk and operating costs of games...
It doesn't make sense in most cases.
I think Sony is in a race against time to try and afford T2 as quickly as possible. They're up 20% in the last year and 44% in the last 5 years. So the question is how quickly can Sony come up with 50 billion dollars? And the answer is not quickly. If I'm them my first step is buying FromSoftware/Kadokawa and making Elden Ring 2 exclusive to PS5 and a PSN PC storefront. The next step is trying to buy CDPR and doing the same with The Witcher and Witcher 4, not to mention future Cyberpunk games.
The goal would be to get to 5 billion in average annual income as quickly as possible.
The irony is that if the revenue and profits were low he would be using them to shit on Sony.
Absolutely, this report was not good for their worldview and has left them pretty exposed. The next two reports are probably going to be devastating for them.
The Q3 report will potentially show that the anniversary edition PS5s, discounting, and the PS5 Pro have Sony on track to meet if not exceed their forecast and the Q4/annual report if it does show exceeded the forecast will also likely have PS5 back on track ahead of the PS4 despite the significantly higher pricing. It'll probably come attached with a pretty rosy outlook for the following fiscal year bolstered by GTA6 which he downplays.
If the PS5 can get a clear lead out ahead of the PS4 LTD, it absolutely shatters their narrative and they know it. He's already doing ground work for it. Shifting his narrative to the PS6 which won't launch until 2028, just to keep the dooming going an extra 4 years.
They should just say they're fanboys and they don't like the direction Sony is going in whether that results in more success for the company or not, but they can't say that because they want to pretend like Sony is "stupid" and they're "smart", so Sony must be doomed to not be doing what they want Sony to do.
The console wars are over and Sony didn't win anything except the opportunity to position themselves in a larger platform war, but that fight is going to be against big companies with more invested interest in success in gaming than Microsoft historically has had and more willingness to flex their wallets.
it’s crazy how confident you talk yet how wrong you are.
