Sony Q1 FY2022 Results (2.4m PS5,

[nominedomine]

Xbox fans in this thread:
- Criticizing Sony for being profitable while having actual good games releasing, selling more hardware and having a superior service on every level.
- Defending a company that just spent a crazy amount of money on acquisitions of decadent publishers, released no games in 2022 and has the worst deal in gaming.
- Believing after 20 years of being constantly disappointed that just because MS is big it means they'll be able to compete with Sony.
- Believing after 15 years that Phil Spencer actually will for once deliver on his promises in a non-Monkey's Paw way.

 

[ChorizoPicozo]

Yikes. It seems the Playstation train is losing stream.

 

[adamsapple]

Sure, because you're purposefully ignoring they spent money in investments and that's the main reason why they have less profit than last year...
But go on and keep making a fool of yourself pretending you know how this works.

relax and take a deep breath, remember, they're just a corporation they're not your biological parents

Really?
Do you think acquisitions have no expense? C'mon man... you are better than that.

Ethomaz, if you actually read your own OP, you will see they have stated the acquisitions in their further projectsions in their FY 2022 report, but it is not a factor in this quarter. They mention it as increase in expenses for the remaining FY 2022 forecast.

Let me highlight that for you

 

[ethomaz]

relax and take a deep breath, remember, they're just a corporation they're not your biological parents

Ethomaz, if you actually read your own OP, you will see they have stated the acquisitions in their further projectsions in their FY 2022 report, but it is not a factor in this quarter. They mention it as increase in expenses for the remaining FY 2022 forecast.

Let me highlight that for you

Bungie acquisition that closed on July 15th and will be start to be posted in Q2 FY2022.
Do you know Sony had others acquisitions in the course of quarter, no?

I mean these expenses were just nothing in your weird ideia lol

 

[adamsapple]

Bungie aquisition that closed on July 15th.
Do you know Sony had others acquisitions in the course of quarter, no?

My dude if they had acquisitions increasing quarterly expenses, you don't think it'd be mentioned in the quarterly earnings report segment ?

You don't need to bend over backwards for this, everything is written in plain words in the report itself.

 

[ethomaz]

My dude if they had acquisitions increasing quarterly expenses, you don't think it'd be mentioned in the quarterly earnings report segment ?

You don't need to bend over backwards for this, everything is written in plain words in the report itself.

Because they don't list everything... are you new to financials docs? They post just some key drivers that they think to be worth to point.
There is a whole company running behind it lol

BTW do you know 10% of that incoming down is due exchanged rates? You "probably" missed that too lol

 

[adamsapple]

Because they don't list everything... are you new to financials docs?

Ok, so you are aware of some hidden acquisition related expenses this quarter that they're not listing in their financial reports and that no one else knows about.

 

[ethomaz]

Ok, so you are aware of some hidden acquisition related expenses this quarter that they're not listing in their financial reports and that no one else knows about.

Wut? Hidden?

 

[ChorizoPicozo]

Game pass eating all sony's profits.

 

[Deleted member 223]

Well, raising game prices to 80 euro across europe and whatever crazy price it is in Australia wasn't a good idea with a recession coming in and such crazy inflation and fuel prices.

It wasn't a good idea without the "recession" either, considering there hasn't been such a thing as a real post 2008 recovery. Wages have been stagnant and lagging behind inflation for decades, even way before 2008 (thank off-shoring and "globalizatio" for that - A London/New York/DC specialty). Now it's compounded ten fold. Big publishers wanted the change obviously, and Sony as the console market leader took the plunge with them to settle it in stone (they know without Sony's stamping approval the consumer will devide and conquer on the $60 line by chosing which games/publishers to support). They needed Sony to cement it and they got it. Perfect price fixing case but then again, American companies are involved so... look the other way shall we?

The Nintendo approach is the best but you can't fix greed nor stupidity. The big third party publishers consider themselves too big to fail, not one of them can "bare" the cost of failure...Not only would that call into question the execs careers but actually force hard choices and proper management.....that's alien. Stagnation, as opposed to a steady increase of profit margins ad infinitum is not "acceptable" in today's corporate landscape. After all, you get judged for increasing shareholder value, not keeping relatively the same or taking an L. Except, in business, failure is inevitable, there will always be winners and losers. You can't create an environment where all the big guys are always the winners all the time (they've been successfull thus far to a great extent but you can see the cracks already - Ubi/EA/Activision). What they ultimately tried to do is squeeze the little guys (indie devs) by globbing up a bigger share of the disposable income of the consumer at the $70 line.... without paying into consideration the societal economic time bombs under their feet. Blowback is a bitch. The "great reset".....but not the one from Davos!

 

[thicc_girls_are_teh_best]

Profit Drops 37% Year-on-Year​

Yet revenue only dropped by 2%

So it should be clear the things eating into the profit margins are expenses from acquisitions and 1P software development, and (likely) PSVR2 production as well.

Things that actually show healthy activity in a gaming platform's long-term ecosystem

It wasn't a good idea without it either, considering there hasn't been such a thing as a real post 2008 recovery. Wages have been stagnant and lagging behind inflation for decades. Now it's compounded ten fold. Big publishers wanted it the change obviously, and Sony as the console market leader happily took the plunge with them to settle it in stone (they know without Sony's stamping approval the consumer will devide and conquer on the $60 line).

The Nintendo approach is the best but you can't fix greed nor stupidity. The big third party publishers consider themselves too big to fail, no one can bare the cost of failure, for their careers or otherwise, except, in business, failure is inevitable, there will always be winners and losers. What they ultimately tried to do is squeeze the little guys (indie devs).... without paying into consideration the societal economic time bombs under their feet.

The Nintendo approach where they keep their games artificially inflated in cost for several years and rarely ever drop down in price? At least with Sony & Microsoft you can wait a few weeks or a couple months for a discount/sale price much lower than the launch MSRP, if price is such a concern.

You don't really have that option with Nintendo's software, and not only is it done by design, but a big chunk of their fanbase openly support the practice by buying the software at such prices and rarely ever take up any issues with it publicly.

I don't think PS+ change affected anything yet.
It just 3rd-parties didn't launch neither big in the period... Sony tells several times in the document about the lack of 3rd-party game and DLC/constent sales this quarter.
No big first-party game was released too.

That is what happens when you don't release games.

Q1 FY 2022 started in April, right? Okay, NOW the bolded makes sense because I was about to say "but GT7 and HFW!", they would count towards FY 2021 results though.

 

[Remember_Spinal]

@adamsapple

Relax my guy. You’re fighting a war on two fronts now

 

[adamsapple]

Wut? Hidden?

That's what you're saying lol, that there are hidden acquisition expenses they did not mention in this quarter report, because "they don't reveal everything".

Do you have anything to back it up ?

@adamsapple

Relax my guy. You’re fighting a war on two fronts now

It ain't easy man, between ethomaz not reading his own OP and heisenberg's scott steiner maths, it ain't easy.

 

[ethomaz]

Yet revenue only dropped by 2%

So it should be clear the things eating into the profit margins are expenses from acquisitions and 1P software development, and (likely) PSVR2 production as well.

Things that actually show healthy activity in a gaming platform's long-term ecosystem

Don't talk about PSVR2 R&D developement because Sony didn't point in the presentation it doesn't exists in his mind lol

 

[ethomaz]

That's what you're saying lol, that there are hidden acquisition expenses they did not mention in this quarter report, because "they don't reveal everything".

Do you have anything to back it up ?

Nope.

I'm saying there are several things not listed in the presentation because it is a presentation and not a detailed document.
And that include expenses with acquisitions.

Bungie deal closed this month...
It will be posted in Q2 FY2022? Yes.
It was posted in previous Q? Yes.
It will be posted in next Q? Yes... probably for two or more FY yet.
Will Sony put that in presentations? Probably for Q2 FY2022... probably not for the others Q or FY.

But for you it doesn't exists lol

 

[nominedomine]

@adamsapple

Relax my guy. You’re fighting a war on two fronts now

A war that was already lost before it was even fought.

The Nintendo approach where they keep their games artificially inflated in cost for several years and rarely ever drop down in price? At least with Sony & Microsoft you can wait a few weeks or a couple months for a discount/sale price much lower than the launch MSRP, if price is such a concern.

You don't really have that option with Nintendo's software, and not only is it done by design, but a big chunk of their fanbase openly support the practice by buying the software at such prices and rarely ever take up any issues with it publicly.

Good on them both, Nintendo is making the games they like, nothing wrong with that. Why would Nintendo drop the price of their games if they keep selling and why would people stop buying their games if it's what they want?

 

[adamsapple]

Nope.

I'm saying there are several things not listed in the presentation because it is a presentation and not a detailed document.
And that include expenses with acquisitions.

The corporate website link you've posted in the OP has the entire breakdown, if you can find anything that corroborates your claim, please be my guest to post it.

But here, I'll do one solid for you.

You said they don't talk about acquisitions.

In their "pictures" segment of the report, after the gaming section, they directly mention two acquisition and their impact in this quarter.

·(+) Higher sales for anime streaming services, including the impact of the acquisition of Crunchyroll ·
(+) Impact of the acquisition of Industrial Media

You still think they wouldn't have talked about it just for the gaming report ?

 

[ethomaz]

The corporate website link you've posted in the OP has the entire breakdown, if you can find anything that corroborates your claim, please be my guest to post it.

But here, I'll do one solid for you.

You said they don't talk about acquisitions.

In their "pictures" segment of the report, after the gaming section, they directly mention two acquisition and their impact in this quarter.



You still think they wouldn't have talked about it just for the gaming report ?

I suppose you believe MS presentation has the entry breakdown too



And no... Sony presentation doesn't have the entire breakdown... that should be impossible to put in a presentation... it is probably needs tons of MB of Excel sheet with all data.

 

[Bryank75]

It wasn't a good idea without the "recession" either, considering there hasn't been such a thing as a real post 2008 recovery. Wages have been stagnant and lagging behind inflation for decades, even way before 2008 (thank off-shoring and "globalizatio" for that - A London/New York/DC specialty). Now it's compounded ten fold. Big publishers wanted the change obviously, and Sony as the console market leader took the plunge with them to settle it in stone (they know without Sony's stamping approval the consumer will devide and conquer on the $60 line by chosing which games/publishers to support). They needed Sony to cement it and they got it. Perfect price fixing case but then again, American companies are involved so... look the other way shall we?

The Nintendo approach is the best but you can't fix greed nor stupidity. The big third party publishers consider themselves too big to fail, not one of them can "bare" the cost of failure...Not only would that call into question the execs careers but actually force hard choices and proper management.....that's alien. Stagnation, as opposed to a steady increase of profit margins ad infinitum is not "acceptable" in today's corporate landscape. Except, in business, failure is inevitable, there will always be winners and losers. You can't create an environment where all the big guys are always the winners all the time (they've been successfull thus far to a great extent but you can see the cracks already - Ubi/EA/Activision). What they ultimately tried to do is squeeze the little guys (indie devs) by globbing up a bigger share of the disposable income of the consumer.... without paying into consideration the societal economic time bombs under their feet. Blowback is a bitch. The "great reset"...

Agree 100%, some great insights there.... and management as you say will never say they were wrong or admit they made bad decisions.

They wont reverse decisions cause that is an admission.

 

[ethomaz]

BTW PC revenue keep in the lower end.

Revenue from peripherals including PlayStation®VR and revenue from sales of first-party titles on platforms other than PlayStation® consoles:

~$450 million.

I wonder how much is peripherals and how much is PC games?