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Azzanation on 11 March 2020
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Cerebralbore101 said:
Azzanation said:
Hopefully Sony see the protential of sales and profit rom Horizon on PC and realize holding games hostage isnt the best strategy anymore which will lead to more money for Sony and an even bigger audience for fhere games.

Trying to find the pie chart I saw years ago on Gamasutra, but $10-$15 of a game sold goes to the console holder. So let's say somebody buys a PS4 and ten games. This is lowballing it, but Sony makes $100-$150 in console royalty fees from those 10 games. Add in an average of $20 a year in PSN fees for five years, since about 1/3rd of users are subbed to PS+. Let's say that keeping Horizon on PS4 for good improves the Playstation brand enough to sell an additional 2 million PS5's in the future. That's $400,000,000 dollars in future profit ($100 in royalty fees + $100 for 5 years of PS+ from 1/3rd of  those 2 million users.)

Meanwhile Horizon will likely be bought at bargain basement prices on Steam. Probably around $20 a copy, just like the PS Store. At 2 million copies sold (this is being generous), they'd make about ($14 per copy) $28,000,000.

So we are comparing $28,000,000 vs $400,000,000. Sony is basically burning their own brand to the ground at this point. 

But oh well, it does benefit us gamers. I might not even get a PS5 until 2022 or 2023 now, because I'll have no need. My 2070S Rig will work fine. 


Keep in mind that consoles cost money to make and a fortune to RnD. So basiaclly hardware loses money while the software and subscribers make that money back. Depending on how fast the console sells determine weather they make there money back on the console earlier. Its why Sony hasnt gone full PC yet due to the amount of success the PS4 has been this generation.

However that success is not always guaranteed every generation and with competition only increasing it could mean less overall sales which hurts shareholders etc. 

This Gen Sony were awfully lucky that both Nintendo and Xbox slipped up and led a 1 way ticket to success however with Nintendos recent success of the Switch and Xboxes revival, Sony are going to have to think about the bigger picture because there is too much money to lose by sticking to 1 format unless they are Nintendo which they are not.