NPD 2010: Game Sales Even, PS3 Software Up 32%

makingmusic476

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makingmusic476 on 14 January 2011

Kynes said:

If this is true, then they have a big management problem. If they want to fight iTunes, Spotify and other free/paid streaming services, google/apple/netflix/whatever tv service... they are going to be eons in red.

According to the article Joystiq sourced for that neogaf thread, they plan to enter into the black with PSN sometime in the upcoming fiscal year.

The fruits of this project are already appearing, albeit slowly, and they're helping to turn this negative revenue flow into a positive revenue flow. Qriocity is a recent example of this.

Edit:

Also, they've been a strong partner with Google for Google TV, so I doubt they'll be competing on that front. I would assume they're simply trying to unify their power as a music/video content provider with the digital distribution capabilities engineered for their video game arm.

I'm sure we'll see an iTunes-like music store appear around the PSP2's launch, for example.

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AussieGecko on 15 January 2011

Scoobes said:

AussieGecko said:

From last reports isnt sony bleeding enough money from this console, another 100 price cut wouldnt be a smart move. Slim would be rather early and would seem a rather knee jerk reaction, you again :)

The PS3 isn't bleeding money anymore (hardware-wise) and they now make a profit on each unit sold. They seem to be bleeding money from PSN.

Fair enough, wasnt too sure.

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AussieGecko on 15 January 2011

Scoobes said:

I'm not sure how they're bleeding money from PSN tbh. Valve seem to be making lots of money when they "only" have a userbase of around 30 million. They must be able to lower costs somewhere.

would make sense, who is going to pay for the servers, explains why ms charges imo. 30 million is still a lot of people and realistically the psn would be made even now to sustain much more.

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