Barozi said:
Kyuu said:
Revenue, concurrent, and active players are key metrics for gauging popularity. Profitability is a metric for gauging success. Popularity is not meaningless.
Playstation is a massive business. It dominates in dollar sales, software sales, f2p, and even services (where only GamePass competes). The fact that Playstation continues to sell 300 million traditional software annually and make the equivalent of that from microtransactions is actually insane. This is before counting "free game downloads" through Playstation Plus which constitutes 14% of total revenue (or around $4.4 billion).
Unlike GamePass, the money Sony makes through Playstation Plus Isn't damaging their traditional software model. Software sales and f2p remain absolutely huge on Playstation.
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and would you like to explain why popularity isn't meaningless??
A company that sells a product to 100.000 people for $1000 profit each is much more successfull than a company that sells a product to 10.000.000 people for $5 profit each. How does popularity help here?
Let's face the facts, Playstation's popularity has declined hard since the PS2 days. None of their consoles have come close to these sales numbers even though the gaming market has multiplied several times since then. World population has increased a lot too obviously since then. In 2012 Sony sold 160 million PS2s while the world population was at 7bn people. 2.3% of all people worldwide owned a PS2. PS4 on the other hand sold only 117 million until 2022 with a world population of 7.8bn people. Only 1.5% bought the console.
Meanwhile PC gaming and especially mobile gaming have grown way past Playstation.
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Hardware sales are only one aspect of popularity. Current Playstation, which doesn't come close to PS2 hardware sales wise, is a lot more popular and successful in other metrics.
Popularity obviously matters because for every 3rd party dollar sale, the platform holder gets a 30% cut. And popular consoles that sell a ton of software will be supported by virtually everyone. Publishers don't look at profitability to determine supporting a platform. They look at popularity: Install base, software sales (units and dollar) and active users. The other things they check are digital ratios and porting costs.
Profitability and popularity are correlated anyway. It's just that some companies are more efficient and/or self-reliant than others. Nintendo for instance typically sell hardware at higher profits margins, and like half of their console's software sales are from first party software that hold their prices well, which more than makes up for the relatively poor 3rd party sales.