Sony plunged $10 billion after its PS5 sales cut. But a bigger issue is its near decade low games margin
Sony plunged $10 billion after its PS5 sales cut. But a bigger issue is its near decade low games margin
44 Comments
Looks like we will finally get ps5 games on Xbox now. Remember, u heard it here first folks.
It’s a huge drop. Sony is only worth (was worth) 110B. (Edit 8% drop, which is massive for a blue chip stock that doesn’t move much).
They have many other divisions and products but they’ve gone in heavy with PlayStation. Sony is a heavy hitter with electronics hardware. Their displays and broadcast camera systems are the best in the world.
MSFT is worth 3T. A huge hit to the Xbox platform wouldn’t make as nearly a dent in their financials. MSFT also didn’t make all that money by selling hardware and games.
Windows and Cloud services make them rich.
Honestly surprised they’re so dead set on their current style of games they’re not even releasing something like a “Resistance Trilogy Pack” or “Ratched and Clank compilation”. I bet they’d certainly sell a few units if done right.
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I’ve been saying it for years and speaking it into the void and taking DVs for it, but I’ll die on this hill and idgaf.
Oversaturation of game devs has been and will continue to ruin the gaming industry. The industry pumps out bangers like RDR2, The Witcher and God of War series, TLOU, TOTK and BOTW to name a few masterpieces over the years.
Then every day they also pump out titles that look like a team of special ed devs made Mario or frogger “with a twist.” I’m not saying indie devs shouldn’t be allowed to create games or every game needs to be a “AAA” release. I’m saying the industry is in its own way by not having a Quality Control department for releases because they would lose our on sales money to not allow indie devs to create theae garbage games.
It comes off as them nickel and diming the gamers by releasing a multitude of options, which only 7% of are really any good or have potential.
If they literally bought those 3mln PS5s that missed the target, and scrapped them, they would be still in plus as of today.
Flood the market by any means
Gaming has become a very expensive hobby, they need to rethink their strategy.
They stupid af for raising pricing of psn, gonna hurt them more long term as will be seen next Gen.
They had a good thing going. With great games lots of hardware sales. Unlike Microsoft who killed themselves trying to reinvent gaming.
And then they got some English idiot at the helm who went with the “LIFE SERVICE” bullshit. They bought bungie which is a steaming pile of crap and stopped developing proper games also sony gaming headquarter moved to California so now games are getting ESG infested too. Their only chance is to move the headquarter back to Japan and have some samurai clean house
Pipeline of games is terrible, too.
a proper handheld would be a big deal too. If DIY Perks can make a PS5 slim with a screen attached, why cant Sony?
their cloud only handheld just cant hold up because technology just isnt there yet dropped frames and unable to handle particle effects, cloud gaming is years away from a complete experience. don’t get me started on their bluetooth shenanigans.
just make a decent, toned down super slim/handheld, re-release inaccessible PS2/PS3 era games with proper remasters, and fix PSN.
Wonder how much the lower margins have to do with them releasing fewer 1st party flagship titles this past year. In 2022, they had three (Horizon Forbidden West, Gran Turismo 7 & God of War Ragnarok). In 2023 they only had one (Spider-Man 2).
Where are the pstards screaming they are better than everybody else that games should only be released on ps5 and damn everything else — well here’s the result. Catering for the minority and tunnel visioning to just console and here is the result. The toxic ps5 community literally drove people away years after the release pushing the “public” to just get a cheaper xbox series s. Elitist behaviour does not drive anything high. It just isolates them even more. That was just 3 years ago.
LOL @ all the pearl clutching/doomsday drama over the nothingburger that was supposedly the fallen state of XBOX, when in spite of them having more console sales, they are the ones actually in trouble.
I mean yeah, everything is expensive. I’m not dropping $500 bucks just to play some exclusives that I know are going to be ported to PC a few years later. That’s why I have a PC, it justifies the cost between work use and access to more games in general.
With Xbox moving away from exclusives, I don’t see the appeal of buying just a PS to play a few games a few years early.
This news in meaningless. We love Sony. As long as gaming subreddits exist and the games media stands with the best, we won’t let Sony lose another console war ever again. We got this! And this news is just another attempt by contrarians to soil the brand.
Stay strong. Bend but don’t break.
These stupid ass doomer articles are doing my fucking head-in. Chasing quarterlies is what this article is lining.
When you factor in the cost of the console, the games, and subscription, no wonder gaming on console is getting way too expensive.
The Playstation division is keeping Sony propped up. Unlike Xbox, which Microsoft could burn down and still be fine. So obviously Sony’s stock is going to be more susceptible to issues with PS.
Didn’t help that they raised their subscription prices for the same exact service and only to follow that up with shitty monthly games.
They need to diversify their games these AAA expensive ass games that take a ridiculous long time to come out and will only get more expensive to make is only going to lead to trouble.
Make more unique fun creative well designed games that cost less.
I always wondered how their cooling solution, and size of their system going to effect their sales, as their retail box is about 53% larger than the Series X.
Generally Size is a huge cost when it comes to shipping, that’s why so many products are designed for the most efficient use of space.
That said though as long as GPU companies keep launching “entry” level GPUs at $600-700, game consoles will always have a market.
no games
Yeah ps5 has been extremely disappointing. Dunkeys video hit the nail on the head.
You mean that when games cost more, are riddled with microtransactions, and are designed to be played for hundreds of hours, people buy fewer games?
Shocked Pikachu Face, man.
The PlayStation plus subscription sucks. I won’t let my next one auto renew. I just don’t want to have a subscription service tied to my gaming mainly being a PC gamer but if I did I would go with Gamepass for sure. I’m glad they’re realizing now how much better they’re doing with PC day one releases with Helldivers 2’s booming success. I think a lot of people myself included have the mindset like hey man they’re making me wait a year or more to get the next final fantasy on PC afterwards, what’s a few more months for a discount?
Good, I finally get a Playstation after always having xbox and they take away every perk they possibly can. Now I get the luxury of paying for online multiplayer and nothing else.
Who would of thought such greed and stupidity could go wrong?
Too many games to play
I got a ps5 and really only use it as a streaming box now. Plus why you charging so much for psn when you don’t even have any good 1st party multi-player games
Problem w Sony is there lack of 1st party they have 20 PS studios dropping 1 major title is unacceptable. Xbox has 40 & showcase 4 major games in 2024 Matt Booty also said they had 10 games to release in 2024 probably smaller titles.
Sony doesn’t monetize there singleplayer games they release them then move to the next project while PS has a rich ip. Why don’t they sell a sly cooper dlc pack for Ratchet & Clank rift apart let me play as sly cooper in R&C I’d happily pay 10$ to 20$ why can I play as Jak & Daxter in R&C why aren’t Naughty Dog selling a Jak & Daxter costume for Ellie for 10$ days gone why weren’t they’re Syphon filter skins in day gone these are easy ways to monetize singleplayer games by using your own ip. Also PS need to make smaller games that are 40$ to 50$ price range that takes 3 years franchises like Sky cooper, Jak & Daxter & Ape escape now a days w PS new star power would sell easily 3 to 5 million making them medium profit in the meantime the AAA games comes out. R&C rift apart had a budget of 70 million & made 200+ million in revenue in 3 years of being out.
PC day 1 won’t help long term sure they’ll make more sales but at the cost of PS consoles so if they did day 1 PC they’d miss they’re 25 million target & definitely miss the 21 million I who used to mainly game on PS consoles have already migrated to PC & is essentially waiting for they’re games to be ported & I get them in deep deep discount. I no longer spend $ on mtx on PS nor pay there subscription Nintendo has the best strategy true exclusive while focusing on smaller budget games that release in a cycle of 3 years that way they can pump like 4 to 6 games a year w less studios then PS & Xbox.
I expect them to scope there AAA games to release in 4 years while also releasing smaller budget games that release in 3 years. I expect them to double down on PC & mobile w live service franchise like Socom, Warhawk, PS home should have a focus on bringing back w live service in mind (they only have 1 mobile studio Neon Koi) so they can grow mobile studios or buy a mobile publisher like hoyoverse. Hoyoverse is worth around 8 billion & make more profit then ABK combine just with genshin impact & there other gotcha mobile game
I did my part in 2023. Bought a ps5 and a few games. Yall slacking.
Totally worth it btw, my only complaint though is that the volume of PS5 shit is totally different than streaming services, so I if I forget to turn it down after being on my ps5 I break my eardrums what we start watching something.
They should really invest in smaller studios to bring smaller scope games. Look at how well helldivers has done and how small the scope of the game is compared to the heavy hitters.
The subscription model has made me spend less. For the price of two games a year, I have access to a massive library of games I’ll never get through.
This dynamic means I probably only actually “buy” a few games a year at most.
i dont have much speculation but maybe they want to push sales Consoles
Why does everyone in this thread seemingly think you can buy or build a decent gaming PC that will last for years and years for the same price as you could buy a PS5 for? You can’t. It’s impossible. For that price you will be looking at fairly low-mid level gaming PC’s that will struggle to play games with comparable graphics to a PS5. Not to mention it will be outdated in 2 years, maximum.
The way I see it is PC’s are for more serious gamers and consoles are for more casual players. I want to sit on my sofa being a slob playing fifa, not sat in an office chair in my office, looking at a PC monitor and listening to crappy audio.
It seems like pricing games at $70 USD that are broken on launch leads to less over sales… who knew…
PCs have got to big for these consoles to handle
Not to mention feels like they are doing worse at awards, and I blame the lack of exposure. Final fantasy is one of my favorite franchises and I had such a vague awareness of 16 development, let alone that it released on only PS5.
Sorry but I’m not paying $800 to a dude I have to meet in a parking lot so I can play a PS5
What the Hell is going on? There were just a bunch of articles talking about how the PS5 beat out XBox sales by like 2:1?
Were the articles garbage? Or is the whole console collective kind of fucked right now?
Seems like all these folks are putting productions on pause because of tech advancements in process or right around the corner.
Wonder how much of this might be AI related in some way.
So many experts in this thread.
Sonny screwed up imo when they released their consoles with such low inventory. It forced developers to build their products to be capable with other platforms such as PC or the Switch.
It also incentivized gamers to invest the money they had allotted for a PS5 into their PC or into a Switch.
What Sony should of done is hold back on the PS5 until they had the units, but also they should of partnered with a bigger AAA studio and released the console with that game and have that game be exclusive to the PS5. Like maybe a GTA 6 or a New Elder Scrollers. Something people are dying to play.