Premium PSN plans for E3 reveal, to cost “less than £50 per year”

[drpunk]

Where's the money being made?

I have no ideas about the business model here, I'm just kinda guessing.

But, presumably, from the cost of a game on PSN the developer gets some and Sony get some.

So, as a developer, if someone downloads my game for "free" I would still expect to get my cut from that "sale" from Sony.

Sony would obviously get no cut cos there's no sale. Their cut comes from your PSN premium subscription.

So, pretending it's £50 per year that's £4.16 a month.

I can't imagine that £4.16 covers the developer's cut and Sony's cut of a downloaded game. Things get a bit blurry when you consider that people wouldn't've bought the game had they not subscribed, but it's fair to assume that if the main draw of this premium service is the free games then it's mainly gonna be the people who buy PSN games in the first place who'll be interested in signing up for it.