How Would You Improve Playstation Plus on the PS5?

[DonFerrari]

EricHiggin said:

DonFerrari said:

Sony won't do a 25 package for just online. That would mean very little people would buy the 50-60 for online and freebies.

Just look at the data. PS+ on PS3 got like less than 2M users with the 50 bucks for freebies and discounted games. PS+ on PS4 because of online got 40M subs.

If they separate the both, the one costing 25 would sell 50M and the one for 50 bucks would sell 1M, why would they do that?

Now if you want to see the options, PS+ 60 per year, PSNow 120 per year, both 150 per year that is more likely to happen.

Well what about hardware entry price? PS4 left a bunch of money in your pocket in comparison and has led to higher sales in a much shorter period than PS3. Look at the PS3 vs PS4 total game sales (shipments) time period and clearly the PS4 has allowed for more software sales. Plus no doubt helps with that as well.

With there being around 37M subscribers, who's to say that with a cheaper Plus package next gen that it wouldn't increase subs dramatically? If 37M are willing to pay $60 per month, then you could probably double that number if the cost was only $25, leading to 75M subs at $25. Then let's be safe and say 12M at $50 per month, and 5M at $75.

That would lead to an overall increase in sub revenue by $700M dollars. Then you have to ask yourself, for those that decided to save $25 by going with the cheapest package, how many of them are going to take that savings and put it towards more PS hardware or software anyway?

If PS5 launches at $499, you are now in between PS4 and PS3 in terms of launch entry price, so it wouldn't be crazy to think PS would lower the basic Plus package to around $25 to make it more appealing to those buyers. You're also going to have a cheaper PS4 on the market for those who likely have been waiting for the price to drop because they have no other choice, and if you want to have a chance at a significant amount of them joining Plus, the base price will have to be cheaper.

The way I see it, is one way or another, the money will end up in SNY's pocket and will probably increase overall by hooking more people with a cheaper base Plus price.

Except in real world it wouldn't really happen like that.

Yes people had more money around, but the incread of 1500% didn't come from more money in the pocket because PS4 was cheaper than PS3 (even more because at the time PS+ launched PS3 was about 249-299 anyway or close to it). The increase came almost exclusively by putting MP behind paywal.

So if you want to do a real math on it, you won't have your subs doubling on half the price, plus another 12M (1/3 of current PS+) paying today price and more 5M paying 75 (3x what PSNow have today). This would put a sum of 92M subs that is very much unlikely.

More likely outcome, 25 sub for MP on a similar size userbase (100M) would get you perhaps 50M subs, then 2M subs for 50 usd to get discounts and the free games and perhaps 1M on 75. Total = 25*50+50*2+75=1425M versus today 37M@50 = 1850M. So you have 400M less revenue but needing yo service twice the userbase so increased cost.

Basically no significant amount would pick that saved money and use on other PS stuff because they don't do accountability of money and videogame budget, and even if they did, Sony would have to sell more stuff to see the same dollar.

You are painting an impossible scenario to say it will profit more. And I was generous to put 50M subs with the 25 less payment. Sony would probably lose 500M a year with your strategy. With XBL having a similar price to PS+ there is no way or reason for Sony to start with such a low price.

Last edited by DonFerrari - on 21 August 2019