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Forums - Gaming - Where are the sources that Sony making tons of monies on PS4?

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joeorc on 09 February 2014
Galaki said:

Lots of people spouting this runaway success that is of PS4 and making Sony gazillions.

Nobody refute those claims neither but I have yet to see any sources pointing to such profit that turn Sony around as a whole.

Anyone?

Following the launch of the PlayStation 4, the division raked in $4.207 billion in revenue and made an operating income of $172 million.

http://www.gsmarena.com/sony_sold_more_smartphones_last_quarter-news-7755.php

Yes, i know its really not all that much Profit, but it does give an idea



I AM BOLO

100% lover "nothing else matter's" after that...

ps:

Proud psOne/2/3/p owner.  I survived Aplcalyps3 and all I got was this lousy Signature.

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joeorc on 09 February 2014
pezus said:

No. The more they sell, the more they profit due to software and accessory sales (where most of the profits usually come from anyway). It looks like PS4 is only selling at a very small loss, although it is hard to say since the division profited pretty greatly this quarter and was up A LOT over the year before (despite PS3, PS2, PSP, Vita dropping)

100% exactly

http://www.gsmarena.com/sony_sold_more_smartphones_last_quarter-news-7755.php

  $4.207 billion in revenue with  an operating income of $172 million. just from Sony Computertainment, there is still playstation Mobile software sales,  PS+, PLAYSTATION Home also adding to software sales, that's one of the thing's that go along with selling just the system. Sony Online Entertainment also since most if not all those games are also going to be ported on the PS4. I think SCE may invest more money into SOE to make more cross play cross buy with the SOE iP's which now the PS4 is designed to run from the get go since it uses more standard PC centric components.



I AM BOLO

100% lover "nothing else matter's" after that...

ps:

Proud psOne/2/3/p owner.  I survived Aplcalyps3 and all I got was this lousy Signature.

Puppyroach on 09 February 2014

Do we have numbers for Sony and MS for their consoles this last quarter?



RenCutypoison on 09 February 2014
pezus said:
RenCutypoison said:


New suscribers wouldn't take one year directly, right after buying a 400$ console + games.

Eh, why? I attended the launch here in my country and lots of people did just that. It's much cheaper than buying 90 days and then again and again and again


The difference is just 10$ per year. And it seems people prefer to pay small amounts regurlary than a big amount at once.

And PSplus still as a cost for Sony, discount plus big games (They probably have to pay publishers for big games in instant collection)



Zod95 on 09 February 2014
ethomaz said:
Galaki said:

That's the whole Game division. Not just PS4.

PS3 crazy down in hardware/software... Vita well Vita...

What did you thing increased sales and profit?

Sales? PS4. Profit? Absence of R&D costs on a next-gen console.

PS4 is being sold at a loss and the software attach rate is still very low to counterbalance that.



Prediction made in 14/01/2014 for 31/12/2020:      PS4: 100M      XOne: 70M      WiiU: 25M

Prediction made in 01/04/2016 for 31/12/2020:      PS4: 100M      XOne: 50M      WiiU: 18M

Prediction made in 15/04/2017 for 31/12/2020:      PS4: 90M      XOne: 40M      WiiU: 15M      Switch: 20M

Prediction made in 24/03/2018 for 31/12/2020:      PS4: 110M      XOne: 50M      WiiU: 14M      Switch: 65M

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BeElite on 09 February 2014
RenCutypoison said:


The difference is just 10$ per year. And it seems people prefer to pay small amounts regurlary than a big amount at once.

And PSplus still as a cost for Sony, discount plus big games (They probably have to pay publishers for big games in instant collection)


Actually most prefer to pay once pay less over all and have peace of mind for a year.  This is $50 you are talking about not a few thousand.

No its not, the sales are Sony just cutting their publishing fees.  With no retailer cut they can discouint PSn games way more while losing nothing at all.

And publishers wsant their old games on PSN+ its a way to expend the frbnchise to new players and hook em for a sequal.  And it works ex me geting DMC for free and now lilely buying DMC2 in the future.  Same goes for future Metro.



Baalzamon on 09 February 2014

Just want to make sure people know how accounting works regarding ps+ as well. When sony sells a $50 subscription, only the amount earned is recorded as revenue. So if a 50 dollar sub is sold on December 1st, only $4 is recorded as revenue...the rest is actually a liability. The increased revenues will stay up whether people bought a 3 month or a 12 month subscription.



Money can't buy happiness. Just video games, which make me happy.

DonFerrari on 09 February 2014
RenCutypoison said:
pezus said:
RenCutypoison said:


New suscribers wouldn't take one year directly, right after buying a 400$ console + games.

Eh, why? I attended the launch here in my country and lots of people did just that. It's much cheaper than buying 90 days and then again and again and again


The difference is just 10$ per year. And it seems people prefer to pay small amounts regurlary than a big amount at once.

And PSplus still as a cost for Sony, discount plus big games (They probably have to pay publishers for big games in instant collection)

Sony pay something for all games for free on Plus... the amount (not disclosed on the interview I saw) is calculate on how much profit the owner lost (real sales that would be done on the period and besides got gave away) and how much he will make on sequels... So the bigger the tile and sooner the release more Sony will pay. So I would say that from that 50 you pay sony profit is something between 10-20.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

Ajax on 09 February 2014
DerNebel said:
Ajax said:
DamnTastic said:


Operating Income is not profit.

http://www.investopedia.com/terms/o/operatingincome.asp


Here is how you reach net profit on a P&L (Profit & Loss) account:

  1. Sales Revenue = Price (of product) X Quantity Sold
  2. Gross profit = sales revenue minus cost of sales and other direct costs
  3. Operating profit = Gross profit minus overheads and other indirect costs
  4. EBIT (earnings before interest and taxes) = operating profit + non-operating income
  5. Pretax Profit (EBT, earnings before taxes) = operating profit minus one off items and redundancy payments, staff restructuring minus interest payable
  6. Net profit = Pre-tax profit minus tax
  7. Retained earnings = Profit after tax minus Dividend
I would be surprised if Sony doesnt have to pay taxes.


''Hadouken!''

RenCutypoison on 09 February 2014
BeElite said:
RenCutypoison said:


The difference is just 10$ per year. And it seems people prefer to pay small amounts regurlary than a big amount at once.

And PSplus still as a cost for Sony, discount plus big games (They probably have to pay publishers for big games in instant collection)


Actually most prefer to pay once pay less over all and have peace of mind for a year.  This is $50 you are talking about not a few thousand.

No its not, the sales are Sony just cutting their publishing fees.  With no retailer cut they can discouint PSn games way more while losing nothing at all.

And publishers wsant their old games on PSN+ its a way to expend the frbnchise to new players and hook em for a sequal.  And it works ex me geting DMC for free and now lilely buying DMC2 in the future.  Same goes for future Metro.

It may be true for some games, but pretty sure not all. Indies are more likely to giveaway their games for free advertising, but some publisher think they don't need it.