MoHasanie on 06 July 2014
impertinence said: Obviously, you can't expect every new idea to be profitable, but this strategy seems an awful lot like the 'every electronics' strategy that has brought Sony itself to a very unhealthy position. (For those who don't understand the comparison, Sony has for a long time attempted to position itself in every single electronics market and let the hits pay for the many misses. So they carry a toxic TV division for ages for example, hoping big hots in whatever will pay for their position as a premier TV provider). The problem here is that 'supporting talent' is becoming more and more expensive (game budgets are going up) while there is significant push back from the consumers against increasing cost of the games (whiny gamers don't want to pay $70 for extremely expensive to make games), on top of that despite what people want to believe here, the customer base is constantly bleeding people to lower cost options such as phone and tablet gaming. In short: AAA model is unsustainable. |
I agree with everything you said, but in Sony's case, if only 3 out of 10 games are profitable, it shows how bad Sony's current model is for making money from software.