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| EpicRandy said:
It's about the last 2 years and the certainty it will continue this way if they don't change anything. Both those years saw records of high profits yet lower profits than 2018-2022 and a 10-year low ROI. they may have made record profits but those have been achieved through record expenses lowering their overall ROI to the point investments are better made elsewhere. That's why investments to maintain the gaming industry have been cut. I agree with your point of view, but the point of view of the investor is if I have 2 option 1) Give me $7 profit for $100 invested and 2) give me $7.01+ for 100$ invested they're going to pick the number 2 without a second though. Playstation and pretty much all of the gaming industry with few exceptions is option one. |
You keep emphasizing RoI, but, as I've pointed out, the games themselves are not the big money makers. It's the microtransactions. RoI might be lower, that's not an excuse to cut development staff. You need a steady stream of first party content to continue to be successful, at least on consoles. How it works in the modern era is people buy into the ecosystem and then you get your money back on microtransactions. Sony, for some reason, isn't understanding this. They are hoping to cut staff, lower budgets, and keep all the actual profit. That might with this generation, but that may not work as we lead into next generation.
I'm not saying you're wrong. I'm saying Sony is thinking of it wrong, and of course they are since investors care about immediate gains and not the long term.
