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EpicRandy said:

Yes "generation" but not ecosystem, they count profit from PS4 ecosystem 2020+ toward PS5 gen which IMO was the vast majority of 2020/2021 profits and a large portion still of 2022/2023.

Also they mentioned consumer increased spending with PS5 hardware but the still the RoI is <7%. So like I said revenue is all time high but so is spending and RoI is very low.

I don't quite understand why the ecosystem matters in the context of this when I'm complaining about the fact that they got rid of several studios and fired a bunch of staff. Their profit is at an all time high at the same time that they decided to cut staff. Even if the PS4 has been a large contributer of this generation, the fact is that in 3.5 years they've earned as much as the previous 7 years. So they've earned more profit in half the time and STILL decided to make significant cuts. 

Sure, the argument can be made that they are thinking about the future and not wanting to take large hits, but it's doubtful that they are going to take such a hard hit when a huge portion of the profit is microtransactions and games continue to take longer to develop. What they need to do is keep a steady stream of games to get people to buy into their platform and spend their money on in-game purchases from things like Fortnite, Call of Duty, etc. 

They wouldn't make the profit off of the games themselves, they would put those as an investment into what really gives them the return. But that's not what they are doing, and I don't understand why. 

Heck, if the idea is to trim costs of games they could have kept the employees and made more games with smaller budgets. Increase their output and get more people to invest into the ecosystem. Yet, what we are currently getting is a situation where, for the second year in a row, Sony is releasing only one major first party game. Spiderman 2 was last year and this year it's Astrobot.