PS3 Software
To project PS3 software, we have to take into account the annual attach rate of software to hardware.
We do this, as you guys all know, by taking the total number of consoles and dividing it from the total software sold.
The numbers for the past FY’s are as follows:
FY End Mar 2007
PS3 Software of 13.2 million divided by PS3 hardware of 5.5 million = 2.4 annual attach ratio
FY End Mar 2008
PS3 Software of 54.1 million divided by total PS3 hardware of 5.5 million + 9.24 million = 3.93 annual attach rate
Since the PS3 is gaining momentum, selling more hardware and software, I project a 4.12(*) annual attach ratio, which is a 5% increase from the previous annual attach ratio of 3.93
The total hardware at the end of FY ending Mar 2009 will be 5.5+9.24+11(*) = 25.74(*)
With an annual attach ratio of 4.12(*), the total software units will then equal to 106.0(*) million units
Previously we used a $2(*) NET profit for PS3 software. However, due to increased online distribution and possibly higher licensing fees for PS3 software, I am optimistically increasing the NET profit for PS3 software by 50% and using $3(*) NET profit.
Therefore:
PS3 software of 106.0(*) million x $3(*) NET profit = $318(*) million
