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Forums - Sony - PS4 will make $1.2bn each year from PS Plus, analyst estimates

Sony's decision to put its PS4 online multiplayer services behind a pay-wall will drive consumer spending on PS Plus to $1.2 billion per year, a games business analyst has calculated.

 

 

The analyst team estimates that Sony made just $140 million from PS Plus subscriptions in 2012, while Microsoft brought in $1.25 billion. This gulf in spending, say the analysts, will be bridged once PSN multiplayer is only accessible to those who pay a monthly subscription.

Xbox Live Gold subscriptions, which place most online Xbox services behind a pay-wall, has made Microsoft $4.7 billion since its 2002 launch, the research firm claimed.

Microsoft and Sony have not publicly verified the data.

At E3 in June, Sony announced that PS4 multiplayer will require a paid subscription. Sony Worldwide Studios president, Shuhei Yoshida, told CVG that the fee will "fund improvements to the service.

By contrast, at E3 Microsoft revealed Games for Gold, a new service that gives Gold subscribers two free old games per month, which has been likened to the existing PS Plus Instant Game Collection offering.

The two manoeuvres bring both PS Plus and Xbox Live closer together in terms of value added to these online services.

IHS Electronics and Media also claims that the PS4 business will be more intrinsically profitable than the major-loss-making early days of the PS3.

It said Sony's games business was becoming more robust because of "lower research and development costs for PlayStation 4 hardware, additional revenue streams from online service subscriptions and a more aggressive transition to higher margin digital content sales".

Source: CVG



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There was no way Sony wouldn't put MP behind paywall after seeing MS numbers.



So for 2012, $140 million divided by $50 = 2 800 000 suscribers

Im surprised the number is that low........it is going to be a tough battle convincing a userbase who is used to playing free online to adopt the Xbox Live model, free games or no free games.

I somehow feel any poster who argues the merits of PS Plus loses credibility from this point....since the majority of PS3 users clearly don't see the merits themselves.



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

zumnupy10 said:
There was no way Sony wouldn't put MP behind paywall after seeing MS numbers.

True, it always made good business sense, but I imagine they held onto free online as a PR measure to their fans. Now, they did the impossible and are starting to convince fans that paywall is in their best interests.

Must say, I am genuinely impressed with their marketing of it all, being able to do a complete shift and their audience loving them for it.



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

sales2099 said:
So for 2012, $140 million divided by $50 = 2 800 000 suscribers

Im surprised the number is that low........it is going to be a tough battle convincing a userbase who is used to playing free online to adopt the Xbox Live model, free games or no free games.

I somehow feel any poster who argues the merits of PS Plus loses credibility from this point....since the majority of PS3 users clearly don't see the merits themselves.

Are you assuming $140m is revenue based in?



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sales2099 said:
So for 2012, $140 million divided by $50 = 2 800 000 suscribers

Im surprised the number is that low........it is going to be a tough battle convincing a userbase who is used to playing free online to adopt the Xbox Live model, free games or no free games.

I somehow feel any poster who argues the merits of PS Plus loses credibility from this point....since the majority of PS3 users clearly don't see the merits themselves.


Wasn't this every userbase before the 360?



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ethomaz said:
sales2099 said:
So for 2012, $140 million divided by $50 = 2 800 000 suscribers

Im surprised the number is that low........it is going to be a tough battle convincing a userbase who is used to playing free online to adopt the Xbox Live model, free games or no free games.

I somehow feel any poster who argues the merits of PS Plus loses credibility from this point....since the majority of PS3 users clearly don't see the merits themselves.

Are you assuming $140m is revenue based in?

Yes I am assuming this is revenue.



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

sales2099 said:
So for 2012, $140 million divided by $50 = 2 800 000 suscribers

Im surprised the number is that low........it is going to be a tough battle convincing a userbase who is used to playing free online to adopt the Xbox Live model, free games or no free games.

I somehow feel any poster who argues the merits of PS Plus loses credibility from this point....since the majority of PS3 users clearly don't see the merits themselves.

it's more likely around 2.5m given that not everyone has a yearly sub, and may pay month to month or every 3, or every 6.

EDIT: although, I disagree with everything else. 2.5m is really not that bad for a system that has never existed on playstation before. 2.5m users would have been considered really well in xbox's second year as well. 360 is currently somewhere in the 25-30m category IIRC.



sales2099 said:
So for 2012, $140 million divided by $50 = 2 800 000 suscribers

Im surprised the number is that low........it is going to be a tough battle convincing a userbase who is used to playing free online to adopt the Xbox Live model, free games or no free games.

I somehow feel any poster who argues the merits of PS Plus loses credibility from this point....since the majority of PS3 users clearly don't see the merits themselves.

 

PS+ really took off last year when Sony started the "free games" thing.

It would be good if someone could post XBL membership numbers YoY for comparison.



sales2099 said:

Yes I am assuming this is revenue.

Just curious... these are estimates and not real numbers... 2.8m users is really high.