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Forums - Gaming - Sony: We Are Moving Away From A Hardware Centric Model

From Sony's financial brief today for the recent quarter:

"In the gaming business, we are moving away from a hardware centric business model more to a platform business that expands the community and increases engagement." - Sadahiko Hayakawa, Sony Senior Vice President

Sounds like they are going to become more like Microsoft. 

That Marvel Tokoun game in particular I can totally see on XBox and Switch 2 also eventually. 



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Soundwave said:

From Sony's financial brief today for the recent quarter:

"In the gaming business, we are moving away from a hardware centric business model more to a platform business that expands the community and increases engagement." - Sadahiko Hayakawa, Sony Senior Vice President

This is a pretty vague quote just on its own, zero context. This is what he actually said:

And then as for the Electronics business and TV, compared to output devices, we are now shifting to creation devices that include digital camera. So as a result, we are seeing more stability in profitability and in revenue, and also the productivity of our performance is increasing. And against such backdrop, and for example, in the Music business, Music Streaming and EMI Music Publishing has been acquired, and then we increased the music catalog.

And as I mentioned in the speech, in gaming business and moving away from a hardware-centric business to more to the community- based engagement business, and then that has been increasing. So now as we make more transition to entertainment creation, the stability and the productivity, our performance is increasing. So this upward revision might not have been a direct result of these. However, the Music Publishing and also acquisition of a music catalog and also the acquisition of Crunchyroll, these are the areas where we are seeing growth. And as a portfolio, we have been expanding our businesses and also improving our profitability.

Which means that hardware numbers aren't their focus in reporting, but MAU. Which is not surprising, because Sony have been talking about the importance of MAU metrics since the PS4 days.

The single reference line makes it sound like they're abandoning hardware and going full 3rd party, which may one day be true, but very clearly not what was being said. 



It sounds an awful lot like what Microsoft was saying a few years ago.  Also wanting to  not focus on hardware sales reeks of "PS6 is gonna be expensive and we know it won't keep pace with PS4/5 sales". 



As the comment above says. That quote is incomplete and out of context.

They basically were talking about their transition from all the hardware they make to entertainment. Something that has been happening for a while now, most of their investments lately are in pro of their anime/tv shows/movies push. Even the Bungie acquisition, they didn't pay billions for Marathon, they paid for the Destiny IP and the opportunity of making it multimedia.

Is Tokon going to release in other systems? Most likely the Switch 2 at some point.



I think we all need to stop assuming what we believe is to be the case from now on everything we thought we knew how the gaming industry ran has been tossed out the window. Anyone who talks in absolutes as far their interpretation to what executives say, is setting themselves up to be wrong down the road.

I’m just gonna be reactive to whatever news happens.



You called down the thunder, now reap the whirlwind

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Tallies with what we have already seen with stuff like Helldivers 2 coming to Xbox, LEGO Horizon on Switch, and that multiplatform strategy job listing from a couple of weeks ago.

Will be interesting to see how things develop.



I honestly see this as them diverging from being console-makers to be more platform-centered. That's why they are investing in streaming, movies and sounds like even music services

This is not a bad thing either. Sony was originally an eletronic company before entering console market



IcaroRibeiro said:

I honestly see this as them diverging from being console-makers to be more platform-centered. That's why they are investing in streaming, movies and sounds like even music services

This is not a bad thing either. Sony was originally an eletronic company before entering console market

The PS3 was that, investing in movies over games... Didn't go too well. It's still the best media player but never was a great console for gaming. 

Playstation Vue was cancelled start of 2020.

Anyway it's a lot of talk for moving away from creation to acquisition :/

"So now as we make more transition to entertainment creation, the stability and the productivity, our performance is increasing. So this upward revision might not have been a direct result of these. However, the Music Publishing and also acquisition of a music catalog and also the acquisition of Crunchyroll, these are the areas where we are seeing growth. And as a portfolio, we have been expanding our businesses and also improving our profitability."



I was expecting this thread, I knew we would have one with no context, and here it is, az expected.

We have threads about Australian wildlife, jeans, but not about a 8+ year old console getting a price increase... but we sure would get a single quote no context thread about this.

Never change, VGChartz.



Makes sense to me. More money to be made from software than hardware. Sorry everyone, but cloud gaming and subscriptions are the future.