| EpicRandy said: By strength, I was speaking of their ROI, those have dropped significantly over the last 2 years, and as PS4 support fades. Yes, they charge more per title and hardware but cost inflation has been brutal. That's why despite record revenue for 2022/2023 their profits are still significantly down. -- If this refers to the doc in the OP they were referring to PS5 by years and mixing in PS4 2020+ profits, if not, please add a source and check if they didn't use the same trick of "PS5 gen". Also, they defined the most profitable in absolute terms instead of a ratio over their investment, but it's the latter that would give them strength to garner investment into PlayStation not the former. And define "major worry" Cause Sony is doing studio closure, and layoffs while also increasing PC support, I can understand those moves if they react to a situation they worry about, if not then that's a mess. -- But they already have made significant changes, driving the most recent investment towards GAAS, and announcing more support for PC. Not to mention investments in GAAS are not surefire things they are high-risk high-rewards and there will probably be more failure than success there. |
I don't see the problem with mixing PS4 profits with the PS5 when COVID was the main reason it did so well. You also have to take into account that Bungie was on the books for the last couple of years. Most importantly, launch aligned, the PS5 is more profitable than the PS4, even if you want to take away FY13/FY14/FY20/FY21. People are spending and engaging more on PS5 compared to PS4. All this talk about declining margins and the PS5's most profitable years are still ahead of it lol. I also wouldn't overlook the tremendous growth of PlayStation's first party or even PlayStation Productions when discussing ROI.
I define major worry as PS5 sales completely nosediving from this point forward. As I've outlined in another thread, Sony having a prolonged generation will practically ensure the PS5 surpasses the PS4's lifetime sales. Its also unlikely a global pandemic will disrupt the supply chain when the PS6 launches, and the PS5 will be able to enjoy a healthier end of life than the PS4, and with that even healthier profits.
Their PC support has been telegraphed for years now. Their live service initiative has been telegraphed for years now. These initiatives aren't happening because Sony is worried about their margins for the last year lol.
