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Intrinsic on 25 September 2014
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prinz_valium said:
Baalzamon said:
prinz_valium said:
including inflation it will be nearly impossible

No, no it isn't.

CPI inflation has only been 35% from 2000-2013. It is by no means impossible for the PS4 to have 1.35 billion in annual profits. Hell, a $50 profit per console (not saying this is the actual, just putting a number that is certainly obtainable) on 15 million consoles is already $750 million.


so u need 100$ pure profit from 15m consoles every year

or 50$  pure profit from 30m consoles a year

 

thats hell of a lot...

Is it really?

Lets forget about PS+ subscriptions cause we have no clue how much PSN cost them and what not. So lets focus on just hardware and software. Now lets assume that they break even on the hardware, I know they are actually making a profit on hardware now but lets keep this simple. So that leaves us with teh software.

Sony gets on average $15 as royalties from very third party game sold on the playstation. This is up 100% from the around $7 they got from games in the PS2. Sony gets a lot more money from their own first party titles but lets leave those out of this too. Now lets look at a 30M install base. If 30M people buy ONE third party game per year that would be 30M x $15. Thats $450M in gauranteed profits right there. 

And remember, we are assuming that with an install base of 30M people, they are only buying ONE third party game that year. Which is practically impossible. Thats like saying only 30M third party games are sold per year from an install base of 30M people. And by the end of next year the PS4 could very well be at 30M.

I think this is sony just downplaying the expectations again so when the exceed them in "record time" they have something else to brag about. Kinda like how even though they knew pre-orders for their console had exceeded 1.5M before launch and they were tracking to sell over 4M consoles by the end of 2013 they still set their March 2014 expectations at 5M.