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

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BeElite on 09 February 2014
RenCutypoison said:
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.

All with any business sense the bigger the better especially aaa games.  At a certain point you have to forget your old product and invest in the new one.  Giving away the old sets up the new one for success, especially if they follow a story arc.  Lets the consumer get into and catch up at no cost.  Its a simple choice you can hope to milk another 100k from a game that made you millions already or do everything possible to ensure sequal success.

Im sure a few may be moronic and to cheap to do it, some live some die.

 

 



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T.Rexington on 09 February 2014

From what I understand, it's not that the PS4 isn't profitable, it's been a big success. The problem lies in the rest of the company. Things are just so bad in other division, that the PS4's success doesn't do much to save Sony as a whole company. What's bound to happen, in my opinion, is that the less profitable divisions will be shrunk, don't think they want to cut so much of the company away. Sony is probably gonna put more effort into the PS4 and try to make it as profitable as possible.



Zelhawks37 on 09 February 2014
Ajax said:
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.

Exactly. Proving once again that accounting useful in this day and age, even in the video game world.



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

I know what the difference between operating income and profit is. But the topic of this thread is "is Sony making money with the PS4?" and the operating income shows that they are doing that, cause I'd be highly surprised if the taxes that can be accounted towards the game division are higher than its operating income.

So it looked to me like you didn't understand what operating income really is, cause honestly your first comment was pretty pointless in connection with the thread.



RenCutypoison on 09 February 2014
BeElite said:
RenCutypoison said:

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.

All with any business sense the bigger the better especially aaa games.  At a certain point you have to forget your old product and invest in the new one.  Giving away the old sets up the new one for success, especially if they follow a story arc.  Lets the consumer get into and catch up at no cost.  Its a simple choice you can hope to milk another 100k from a game that made you millions already or do everything possible to ensure sequal success.

Im sure a few may be moronic and to cheap to do it, some live some die.

 

 

Anyone with common sense would know you don't need a male protagonist to sell a game. Or that a MMO that is not like wow can sell, etc

Investors are stupid sometimes, but they still are the ones to decide. And yes that's a great deal for them, and i'm sure some knows.

For example any pc game more than 5 years old (there are exceptions of course) should be given away for free because publishers don't get money from them anymore. They still don't do it.



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MoHasanie on 09 February 2014
pezus said:
Baalzamon said:
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.

That's the first time I've heard that. Are you sure about that? And why would they do it like that, when it's essentially a one-time fee just like a game?


Yeah I don't think they do it like that. When someone pays $50 for PS Plus they pay all in one go, they aren't paying monthly. 



    

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drkohler on 09 February 2014
pezus said:
Baalzamon said:
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.

That's the first time I've heard that. Are you sure about that? And why would they do it like that, when it's essentially a one-time fee just like a game?

Hold on for a minute: You actually understood that gibberish? For me it sounded like if I get $50, I only get $4 and the rest I actually own to ??



naruball on 09 February 2014
RenCutypoison said:
BeElite said:
RenCutypoison said:

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.

All with any business sense the bigger the better especially aaa games.  At a certain point you have to forget your old product and invest in the new one.  Giving away the old sets up the new one for success, especially if they follow a story arc.  Lets the consumer get into and catch up at no cost.  Its a simple choice you can hope to milk another 100k from a game that made you millions already or do everything possible to ensure sequal success.

Im sure a few may be moronic and to cheap to do it, some live some die.

 

 

Anyone with common sense would know you don't need a male protagonist to sell a game. Or that a MMO that is not like wow can sell, etc

Investors are stupid sometimes, but they still are the ones to decide. And yes that's a great deal for them, and i'm sure some knows.

For example any pc game more than 5 years old (there are exceptions of course) should be given away for free because publishers don't get money from them anymore. They still don't do it.


That may be true, but if a publisher were to give a game for free, they would have no free promotion from Sony (word of mouth thanks to ps+ surely helps some frachises) and they would have to pay for the servers for the game to be downloaded. There's no point in doing that. Who know what kind of incentives Sony is giving them. Point being, every time an AAA game is free on ps+, I see at least 5 different articles about it on different websites. Even if you don't have any interest in ps+, the headlines alone are free promo to your game. If publishers were to randomly give old pc games for free, they would probably not get similar exposure.



RenCutypoison on 09 February 2014
naruball said:
RenCutypoison said:

Anyone with common sense would know you don't need a male protagonist to sell a game. Or that a MMO that is not like wow can sell, etc

Investors are stupid sometimes, but they still are the ones to decide. And yes that's a great deal for them, and i'm sure some knows.

For example any pc game more than 5 years old (there are exceptions of course) should be given away for free because publishers don't get money from them anymore. They still don't do it.


That may be true, but if a publisher were to give a game for free, they would have no free promotion from Sony (word of mouth thanks to ps+ surely helps some frachises) and they would have to pay for the servers for the game to be downloaded. There's no point in doing that. Who know what kind of incentives Sony is giving them. Point being, every time an AAA game is free on ps+, I see at least 5 different articles about it on different websites. Even if you don't have any interest in ps+, the headlines alone are free promo to your game. If publishers were to randomly give old pc games for free, they would probably not get similar exposure.


Given the lack of real news on gaming website, I'm pretty sure people would know when there is a free game.

And if the thousand free DDL website can survive, I think a publisher could do it too.



naruball on 09 February 2014
RenCutypoison said:
naruball said:
RenCutypoison said:

Anyone with common sense would know you don't need a male protagonist to sell a game. Or that a MMO that is not like wow can sell, etc

Investors are stupid sometimes, but they still are the ones to decide. And yes that's a great deal for them, and i'm sure some knows.

For example any pc game more than 5 years old (there are exceptions of course) should be given away for free because publishers don't get money from them anymore. They still don't do it.


That may be true, but if a publisher were to give a game for free, they would have no free promotion from Sony (word of mouth thanks to ps+ surely helps some frachises) and they would have to pay for the servers for the game to be downloaded. There's no point in doing that. Who know what kind of incentives Sony is giving them. Point being, every time an AAA game is free on ps+, I see at least 5 different articles about it on different websites. Even if you don't have any interest in ps+, the headlines alone are free promo to your game. If publishers were to randomly give old pc games for free, they would probably not get similar exposure.


Given the lack of real news on gaming website, I'm pretty sure people would know when there is a free game.

And if the thousand free DDL website can survive, I think a publisher could do it too.


I think the reason that ps+ works well is because not that many people have it, so it helps publsihers/developers without hurting sales. If 50m people had ps+, the rest would probably not bother buying that game. Hence MS' very old games offered so far. The idea is that you want a core audience to play the game and promote it somehow (forums, friends etc) and not for everyone to have access to it.