DonFerrari said:
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So if online wasn't free on PS3 and you had to pay $25 for a basic package, how many would have paid that, and how many wouldn't have purchased a PS3 because of it? How many would have gone ahead and paid $60 anyway for the higher tier package while they were at it? Plus was also brand new product for PS. It's not often something brand new takes off immediately and see's no changes as it grows yet inevitably slowly stagnates. You need to charge more, or offer more choice, which typically means a cheaper choice at the very least.
You already pointed out it's one third of the existing user base. I simply didn't increase it because like I said, I wanted to be conservative. I don't see what's wrong with thinking way way more people will choose the cheaper base package over the higher tiers. That's what you've been saying. I'm just assuming a cheaper base package would push more people over the edge, who wouldn't be otherwise, to buy into Plus.
How many played PS3 online that weren't paying anything? How many would have paid $25 back then if they were forced to? How do you know it wouldn't double? If you look at many high selling games, after they've only sold a couple million copies give or take, the price has been getting cut in half and then it goes on to sell double or triple or more. Why couldn't this work for Plus?
We're basically assuming everything. Just because we have some general numbers to go off of doesn't guarantee anything. Did XB 360 numbers guarantee XB1 success? Did the changes to the XB1 ecosystem cause the problems it had? What about PS3 to PS4? Did the positive changes to PS4, like a lower, more reasonable, affordable price lead to it's success? Would cheaper online have made it even more successful?
Well you said people don't typically budget for gaming, so why couldn't they decide to take 3 or 4 years of online savings, plus non gaming related savings over that time period, and use them to purchase a PS product they may not have otherwise? If they only have a gaming budget, which you have to take into account will have money added to the pool each year, not just from the savings from online, it could be put into many different things. PSVR was just one possibility, considering it's going to get cheaper as time goes on.
The biggest reasons were that there was little reason at the time not to charge for online, or to charge less. With how poorly the PS3 gen went, charging the same price as XB Live made a tonne of sense at the time. It was becoming the norm, it helped to cover the crappy PS3 gen, PS4 was cheap enough that even with $50 going to online it was still $50 cheaper then the competition without paying for Live, and it helped tie or even lock to some degree many people into the PS4 ecosystem and PS brand in general.
Who was forcing PS to sell PS4 for $399? They could have sold it for the same price as XB1 and it still would have outsold it. Not nearly in the same manner as they did with the lower price, but regardless. PS could certainly have gotten away with less first party titles, maybe not lesser quality titles though. PS is doing this to bring more people into the ecosystem. They likely kept Plus at the same price as XB though because they assumed that was one of the things MS wasn't likely to budge on. That would make it even easier for PS to gain online market share now because Live is unlikely to follow a Plus reduced package as XB is headed in a more service based direction than PS.
If you want to bring people in who won't come easily for whatever reason, it means more work and options. If you don't bring them in, it means either charging more to your existing customers or stagnating. Both of these are more likely to keep those harder to get consumers away, while also losing some of your existing customers. There is a balance though.
PS1 - ! - We must build a console that can alert our enemies.
PS2 - @- We must build a console that offers online living room gaming.
PS3 - #- We must build a console that’s powerful, social, costs and does everything.
PS4 - $- We must build a console that’s affordable, charges for services, and pumps out exclusives.
PRO -%-We must build a console that's VR ready, checkerboard upscales, and sells but a fraction of the money printer.
PS5 - ^ -We must build a console that’s a generational cross product, with RT lighting, and price hiking.
PRO -&- We must build a console that Super Res upscales and continues the cost increases.







