Totoki PS President wants to improve margins with releases outside console.

[Loy310]

It is easy to understand.

Game division increase revenue in 23% but decreased profits in 13%.
That is totally the opposite of what you aim when you increase revenue.

They basically wasted profit money to have that increase in revenue.
It was better not had to increased the revenue at all if you end up having less profit.

That is why they need to see what happened and yes the most common action is to increase profit margins.
Because something is not right.
You are increasing revenue at the cost of lower profit... that is an abomination to any business in any place in this universe.

There is a big elephant in the Sony executives room right now.
The results are not good at all.

They need to understand where the profit gone because they had a 23% increase in revenue.... nobody expect a linear scale where profit grows together with revenue but at least some increase in profit is expected... like 10-15%.

If not you are better staying in the past position without increase revenue.

For real, im surprised at the SIE results, they have to figure that shit out quick, hopefully they do.
Taking home less than 10% of total revenue is not sustainable.

 

[Systemshock2023]

Sony doesn't have much to lose if there's no Xbox by going miltiplat.

Valve can't manage to increase their supply chain ops to meet the demand of a potential steam machine 2.0. and Nintendo won't get into the power game.

 

[Nhomnhom]

So the good ones wasn't? Just the bad ones? Lmfao

Which good ones? I asked you multiple times already. List some if you are so sure about them.

What doesn't make sense if to give him credit for stuff that were already all on their way before he even took over the position.

 

[ethomaz]

Let's just say that TLOU Online probably cost them north of $200M, and that's one live service game that took them nowhere. Now multiply that by 4 or 5.

I understand that.
But we are talking about $ billions of increase in revenue.
Still the profits have big falls.

 

[ethomaz]

For real, im surprised at the SIE results, they have to figure that shit out quick, hopefully they do.
Taking home less than 10% of total revenue is not sustainable.

I won't point fingers bevause it will only guesses.
But something is not right at Game division this FY23.

And if I can put only a big guess... maybe that is the reason behind the Jimbo retirement.
They wasted (a lot) of money in things that didn't return.
Or things that increased revenue but the cost for it was too big eating all that revenue and the revenue of others parts.

 

[J_Paganel]

Yep, all of my friends in college (which was a few years ago for me) who were gamers were on PC or building a PC for the first time. Social media and streamers have a huge influence on people and the vast majority of them are on PC. Of course they all had a switch to play the latest exclusive Zelda at the time, showing the importance of exclusives.

I remembered a story where a little boy was given a PS5 by his parents for Christmas (or birthday I can't quite remember) and he started crying because his favorite Fortnite streamer plays on PC (and thus has advertising contracts with hardware vendors).

Opinion leaders really have a huge influence, in some local cases I even saw the successful promotion of theses "you shouldn't buy games, developers will get a salary from the publisher anyway, so games can be stolen, and there will be no consequences", and this was sincerely supported by the audience.

 

[Gamernyc78]

I remembered a story where a little boy was given a PS5 for Christmas (or birthday I can't quite remember) and he started crying because his favorite Fortnite streamer plays on PC (and thus has advertising contracts with hardware vendors).

Opinion leaders really have a huge influence, in some local cases I even saw the successful promotion of theses "you shouldn't buy games, developers will get a salary from the publisher anyway, so games can be stolen, and there will be no consequences", and this was sincerely supported by the audience.

Yeah that was a video. But as stands true his family got him a console because tht was accessible to them and it's part of my earlier point, PCs are still not as accessible to casuals or mainstream the way we want to believe hence Timmy getting a PlayStation instead of a rig.

Also just looking at recent steam data. PC players are still gaming in 1080p as was mentioned years ago at 60% those Uber rigs ppl like to mention tht outshine consoles are far and few.

 

[Loy310]

I won't point fingers but it will only guesses.
But something is not right at Game division this FY23.

And if I can put only a big guess... maybe that is the reason behind the Jimbo retirement.
They wasted (a lot) of money in things that didn't return.
Or things that increased revenue but the cost for it was too big eating all that revenue and the revenue of others parts.

Im totally shocked at the q3 financials, they have a massive hole somewhere.
And maybe they dont have to launch their games on other platforms once they figure it out but they deffo have to plug that hole.
Hopefully we find out whats going on soon.

 

[Luffy123]

Something happened between May and October last year involving a ton of projects being either cancelled or reassessed.

Pretty obvious the GAS initiative is in the bin so to speak

Let’s see how the shift has been corrected

 

[flaccidsnake]

I'm not boycotting lol
I'm just saying there is absolutely no reason to get a ps if you own a PC.

nothing wrong with this. it's better. people clinging to pointless hd-dvd vs bluray wars that hurt everybody. PC is the standard, should be the standard, and the tricky part is making PC easier to use than a console. one common platform should play all games. i don't see the argument against it.

 

[BigMclargeHuge]

I remembered a story where a little boy was given a PS5 by his parents for Christmas (or birthday I can't quite remember) and he started crying because his favorite Fortnite streamer plays on PC (and thus has advertising contracts with hardware vendors).

Opinion leaders really have a huge influence, in some local cases I even saw the successful promotion of theses "you shouldn't buy games, developers will get a salary from the publisher anyway, so games can be stolen, and there will be no consequences", and this was sincerely supported by the audience.

What the parents should've done is sell the ps5 and let the kid have nothing. Worthless little brat.

 

[ethomaz]

BTW I forget to say.
Only increasing profit margins won’t fix the divergence between revenue and profit… it will only help to fix.

They need to find where it was bleeding and cut or rethink it because it was probably not a good strategy.

 

[Loy310]

BTW I forget to say.
Only increasing profit margins won’t fix the divergence between revenue and profit… it will only help to fix.

They need to find where it was bleeding and cut or rethink it because it was probably not a good strategy.

The abk buyout prolly made them rush into making decisions they did not fully research. And that would be strange because Sony tends to be more deliberate with their business than most.
This will likely lead to layoffs and them pulling back on projects that they started when ms started buying up pubs.

 

[Entropi]

He sounds like Phil Spencer.

 

[Gamernyc78]

Companies always strive for a upward climb but thts not always possible. As long as revenue and profit are growing they are gd to go. Of course thy will think of New ways to expand.

 

[Entropi]

Is this true? If so, ROFL at Xbox

No wonder they are going multiplat tomorrow.

 

[Gamernyc78]

Is this true? If so, ROFL at Xbox

No wonder they are going multiplat tomorrow.

Yeah we were all under the assumption that with ABK they'd have more revue thts crazy.

 

[Entropi]

Correct me if I’m wrong, but Sony didn't say the PS5 is in the “latter stage” of its lifecycle, but late on the middle of its lifecycle.

IGN will IGN I guess.

 

[BigMclargeHuge]

Correct me if I’m wrong, but Sony didn't say the PS5 is in the “latter stage” of its lifecycle, but late on the middle of its lifecycle.

IGN will IGN I guess.

Can't spell ignorant without ign.

 

[Gamernyc78]

Correct me if I’m wrong, but Sony didn't say the PS5 is in the “latter stage” of its lifecycle, but late on the middle of its lifecycle.

IGN will IGN I guess.

Yeah thts why I had put a sensationalism at its best. With tht said this is definitely making them release a pro to revitalize sales.