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Forums - Sony - Hirai: PSN to enter black in 2011 fiscal year (i.e. from March)

Squilliam on 24 December 2010
PullusPardus said:
Squilliam said:

Online services cost, I am hoping this will put to rest any preconceptions that they are cheap to run.



not really anymore, you can keep a server going for cheap nowadays.

Which is why they broke even and profited since 2008.



Tease.

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goforgold on 24 December 2010
Squilliam said:
PullusPardus said:
Squilliam said:

Online services cost, I am hoping this will put to rest any preconceptions that they are cheap to run.



not really anymore, you can keep a server going for cheap nowadays.

Which is why they broke even and profited since 2008.

ha ha no they didn't, that's why this very- ohhhhhhhhh



makingmusic476 on 24 December 2010

A poster on neogaf has directly translated the original Japanese interview, and has clarified what Hirai was trying to say somewhat.  He's not saying that PSN in its current form is unprofitable, but rather that due to the continued expansion of the wider Sony Online Network through services like the PSN video store, Qriocity, etc., they are still in the red.

Some excerpts from UntoldDreams' posts:

Umm... Hold the horses this is inaccurate.
http://jp.reuters.com/article/compan...49554820101222

The actual Japanese article indicates the online service structure including their music play for QRIOCITY as well as E-Book and no doubt anything digital was not making money YET. That includes the video store.

They use the term PSN as the amalgram of their entire online digital play. That as an aggregate cost assessment and has not yet yielded profit due to the simple fact that its still being built.

This is NOT a quote from Kaz Hirai saying PSN games are not profitable. That's completely out of context for the article.
The context of the article is stating that due to all the expansion they have put into PSN including their Video, Music, Games, E-book... They have yet to be profitable.

Anything else being said is not relevant to the original article and statement by Kaz.
What the original Japanese article is talking about is that the Sony Online Infrastructure is costing a lot of money to phase into existence (music, video, games, ebooks) and that keeps them in the red. Its not specific to PSN gaming or dedicated servers or fighting with LIVE or anything like that.

The article also says they have an 11 year road map to their (world domination) profitable digital future (Sony Online Network). Every stage of their business plan starts in the RED INK due to spin up costs and you can imagine how much it will cost for them to fight it out with iTunes and other digital companies.


vr6GOLFr32 on 24 December 2010

One of the many reasons why I chose to trade my 360 for a PS3 (not trying to start a war) - I just don't feel $60 a year is worth it for the addition of cross-game chat . I'm so happy that Sony has stayed committed to offering the PSN for free. Out of good measure, if I receive a PSN card, I will subscribing to PS . I have been wanting too for a while now, but I had to wait to see what exactly it would offer me in the coming months - and so far, i'm impressed.



 Proud owner of the PSone original, PSone slim, PS2 slim, PS3 slim, PSP-3000.

37 PS3 games and counting.

heruamon on 24 December 2010

Hmmm...This is interesting.  I thought the PS3 platform was profitable, but it evidently isn't, since I doubt that it is breaking even on hardware  at this point, when all the marketing and packaging cost are included.  It will be interesting to track this progress to see how PS Plus factors into profitability.



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

- From By Schism Rent Asunder

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Rafux on 24 December 2010

Thanks for the free online Sony.



Joel12345 on 24 December 2010

Well sony thank you for not charging and thank you for the 

Mass Effect 2 DEMO

Little Big Planet 2 DEMO 

Dead Space 2 DEMO

:D



Machiavellian on 24 December 2010

To throw some reality into the mix, I doubt Sony did not charge for PSN because they care so much about gamers then the fact that going from free to paid would be sucuide.  It's much easier from MS to go from charging something they have charged since the Xbox to not charging then for a service to go from not charging to charging.

Also you have to think that all the services that Sony offer, they are still in the red while MS will be making over a billion on their service.  Bleeding like Sony has on hardware and services definitely cramp the things they can do and if PS plus do not continue to grow, could be a problem for Sony and PSN future.



oniyide on 24 December 2010

I hope Sony reachs its goals. Unlike some online services they actually improve it over time. and Live can keep there voice chat and fee. I already pay my phone bill



Vetteman94 on 24 December 2010
heruamon said:

Hmmm...This is interesting.  I thought the PS3 platform was profitable, but it evidently isn't, since I doubt that it is breaking even on hardware  at this point, when all the marketing and packaging cost are included.  It will be interesting to track this progress to see how PS Plus factors into profitability.


I do believe the article refers to the PSN service and not the PS3 console.