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Forums - Sony Discussion - Sony Not Expecting PS4's Profit Margins to Be As High as PS2

bowserthedog on 26 November 2014

I agree.. To me a system has to have lost money to be a failure. But amoung systems which lost money some of them aren't even failures such as the original xbox which successfully got microsoft into the game.



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Burning Typhoon on 26 November 2014
shogunknight said:
Good and reasonable, I know the PS4 is going to perform really well in the coming years but not as big as PS2 levels. Its good they kept expectations in check and not over assume things based on current sales trend


Exactly.  However, with new countries and a bigger audience, who's to say what'll happen.  I think it can, but, Sony should keep it's expectations at somewhat normal levels.  I remember reading a while ago, they had no idea why PS4 was selling as much as it was.



Mr Puggsly on 26 November 2014
curl-6 said:
Mr Puggsly said:

But the X1 taking away from potential PS4 sales.

Let me put it this way. If Vita went away, the 3DS would benefit much. If X1 went away, PS4 would get a massive sales boost.

It's still competition, I just wouldn't call it "strong" competition as PS4 is very easily trouncing Xbone in sales.

Its semantics because we're just debating what "strong competition" is. The X1 having a significant impact on potential PS4 sales makes it a strong competitior. The Wii U having little impact on PS4 sales makes it a weak competitor.



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curl-6 on 26 November 2014
Mr Puggsly said:
curl-6 said:
Mr Puggsly said:

But the X1 taking away from potential PS4 sales.

Let me put it this way. If Vita went away, the 3DS would benefit much. If X1 went away, PS4 would get a massive sales boost.

It's still competition, I just wouldn't call it "strong" competition as PS4 is very easily trouncing Xbone in sales.

Its semantics because we're just debating what "strong competition" is. The X1 having a significant impact on potential PS4 sales makes it a strong competitior. The Wii U having little impact on PS4 sales makes it a weak competitor.

Yeah, our definition of "strong" simply varies.



HollyGamer on 26 November 2014
Mr Puggsly said:
curl-6 said:
Mr Puggsly said:

But the X1 taking away from potential PS4 sales.

Let me put it this way. If Vita went away, the 3DS would benefit much. If X1 went away, PS4 would get a massive sales boost.

It's still competition, I just wouldn't call it "strong" competition as PS4 is very easily trouncing Xbone in sales.

Its semantics because we're just debating what "strong competition" is. The X1 having a significant impact on potential PS4 sales makes it a strong competitior. The Wii U having little impact on PS4 sales makes it a weak competitor.

I wouldn't call that strong, heck even many people dont call that a competition, but if  this about PS3 and Xbox 360 then i agree. Both Xbox One and Wii U is under the same categories while Wii U is more behind Xbox and dont have any intetion to compete, while Xbox is at least trying there best with everything they got.



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NYCrysis on 26 November 2014

Simple math.

Playstation 4 is bringing in a bit MORE REVENUE than ps2.

Even if MARGINS are LOWER, there is still potential for sony to make MORE MONEY than they did with ps2 because

PS+, Digital Sales, & Retail from $50 to $60.

Also inflation.



Player2 on 26 November 2014
RolStoppable said:
I don't understand this. Why would a shift to more digital sales reduce the amount of money Sony gets from third parties? After all, a digital copy usually costs just as much as a retail copy, so third parties can already keep the retailer margin to themselves; why would the royalty rates be smaller then?

The only thing I can think of is in exchange of having some of their games on PS+.



bigjon on 26 November 2014
Mr Puggsly said:
curl-6 said:
iTechHeads said:
 They also have some tough competition and not just from Microsoft, 

I'd hardly call Xbox One "tough competition". Sony won this generation pretty much by default after MS and Ninty shot themselves in the foot too badly to pose a threat.

But the X1 taking away from potential PS4 sales.

Let me put it this way. If Vita went away, the 3DS would benefit much. If X1 went away, PS4 would get a massive sales boost.

The N64 took away 30 milllion sales from the PS1. It is the nature of the business. The XB1 will be lucky to equal the N64.



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Wii- 72 million   3rd Year Peak, better slate of releases

360- 37 million   Should trend down slightly after 3rd year peak

PS3- 29 million  Sales should pick up next year, 3rd year peak and price cut

Burek on 26 November 2014
RolStoppable said:
I don't understand this. Why would a shift to more digital sales reduce the amount of money Sony gets from third parties? After all, a digital copy usually costs just as much as a retail copy, so third parties can already keep the retailer margin to themselves; why would the royalty rates be smaller then?

I think they might be referring less to the full games, and more to the DLCs and microtransactions. Maybe royalties are not paid, or are much lower for those...

They do say that they plan to increase F2P games in the future...



iTechHeads on 26 November 2014
curl-6 said:
iTechHeads said:
 They also have some tough competition and not just from Microsoft, 

I'd hardly call Xbox One "tough competition". Sony won this generation pretty much by default after MS and Ninty shot themselves in the foot too badly to pose a threat.

Microsoft is being very aggressive and Sony can't afford to let them take back marketshare.
Microsoft IS Sony's biggest threat even though PS4 currently enjoys a 2:1 advantage WW.