Scientificreason said:
JustBeingReal said:
The funny thing about all of this is that Sony aren't in the dire situation that many try to make them out to be, their financial losses are the result of leveling out their accounts, the majority of their divisions are actually profitable, most important to the whole gaming discussion is that Playstation is the top dog once again, in the 3rd generation of home consoles out of 4, no other console manufacturer has had as much success as Sony and the only reason Sony doesn't have a 100% success rate as far as dominance goes is because of them being late to the party last generation.
Not only has PS4 sold more hardware than both of it's competitors (whilst making profit on that hardware), it's also sold more software and if anyone understands the console business they should know that software is what makes the money and matters the most.
This generation also adds huge amounts of money from services like PS+ and potentially PS Now.
PS4 has put the Playstation division into a situation where it's entirely self sufficient and the parent company doesn't have to feed the Playstation department with money from anywhere else in the company.
People like to act as if Sony can't afford to invest in new IPs or make AAA games, but the reality is that a portion of the profits made from software sales can easily be reinvested into the development of future games, a lot of future games.
Said profits from software can also be used to create exclusive agreements with 3rd party publishers to bring even more games to the install base of PS4 and Sony wouldn't need to spend anywhere near the money from their savings as Microsoft or Nintendo will because PS4 has a much bigger install base and is guaranteed to sell more copies of any game that Sony could want on their system.
Another thing to factor into this whole analysis of the situation is that the Playstation Division's financial situation means that they can literally match Microsoft's every move, when it comes to the console's price, they can reduce RRP to a point where the platform is breaking even, not harm the division financially, rather the surge in hardware sales that this will accomplish will actually drive software sales and thus division profit even higher.
This article was ridiculous. |
Excellent post man.
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Thanks for the nice words. :)
