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| jason1637 said: Sony must be doing something wrong to have their profits so low. I wonder what’s causing most of the losses |
Hardware is a slim margin business, and frequently a loss leader. Sony is huge in that regard.
Sony makes a lot of incredibly high budget games that go on extensive sales. They make plenty of money, but they are relatively slim margin games. It's a big reason why they're trying so hard to make live service titles; so they can have something that basically prints money the same way that Fortnite does for Epic Games or WoW has for Blizzard, Genshin Impact for MiHoYo (MiHoYo has an absurd 60% profit margin) or all the other examples. Quite a few of the publishers have at least one thing like that, that consistently makes them money. Sony has Destiny now, but that came with almost $4 billion price tag. They don't (yet?) have anything like that, that was home grown.
This doesn't particularly mean that they're doing anything wrong. Any more than MS having a lower profit margin than Nintendo means they're doing something wrong. Or Nintendo having a lower profit margin than MiHoYo means Nintendo is doing something wrong.
Last edited by the-pi-guy - on 20 September 2023
