The_Liquid_Laser said:
Azzanation said:
A customer is nothing to a business if they dont have a wallet. PS4 maximizes profits from its customers, PS2 couldn't as it had to deal with piracy at the time and had no service model to continue to generate cash. Hence hardware sales (especially sold at a loss) means little if the customer is spending less. Also expanding upon the gaming market means little to shareholders if they are not generating profits. Each industry generates profits differently however the end goal is all the same. At a supermarket, companies lose money on Milk but rely on you buying other products like fruit which is sold at a profit. Sounds familiar to how hardware and software work doesn't it. Hardware is what gets the customers into the store, the software is the items the customers buy within the store to generate the profits. Ever wonder why some stores try to give you baskets at the door? So you impulse buy and carry more items, because that's where the money is.
I was removed from a bar once because i wasn't buying any drinks and i was taking up space, they knew i wasn't spending so they asked me to leave so they can get others into the bar who were willing to spend. See how important i was as a customer when i wasn't spending money.
Below is a good example of a made up scenario,
Example 1: Company (A) makes a games console, RnD was $3b to make. They sold 200m consoles at $100 each. They now hold the record of consoles sold and have the most customers with no Subscription model. Would you consider that a success?
Example 2: Company (B) makes a games console, RnD was $3b to make. They sold 100m consoles at $400 each, they also have 50m subscribers paying $100 per year over 5 years.
Both consoles were on the market for 5 years and sold the same amount of software. Who is more successful?
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This entire post is a strawman argument. PS2 was profitable even when they dropped the hardware price to $99.
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Strawman? I am stating facts. No one is saying the PS2 isn't profitable, however compared to the PS4, the PS4 is on another level of success.
Entire PS2 profits $2.2b
Entire PS4 profits $11.3b from 2020, including PSN Subscriptions.
It doesn't always have to lead to a winner or loser but being more successful. This is why when people say Xbox isn't successful refuse to accept how much money these companies rake in via subscribers.
I am not sure why people consider console sales is the only way of success or winning without knowing the returns. The way i see it, the higher the profits the more successful something is.
PlayStation Reportedly Made More Money in 2018 Than It Did During The Entire PS2 Era (comicbook.com)
IcaroRibeiro said:
Azzanation said:
I was removed from a bar once because i wasn't buying any drinks and i was taking up space, they knew i wasn't spending so they asked me to leave so they can get others into the bar who were willing to spend. See how important i was as a customer when i wasn't spending money.
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Seems like an awful place to visit
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It wasnt a great place, i never went back there again however at the time, i didn't have much choice. It was just to prove my point on customer value. Wallet open, they love you, wallet closed, they dont.
Last edited by Azzanation - on 08 June 2021
