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Seganomics

Member
Oct 29, 2017
1,495
But dont MS make close the same amount of money as Sony does anyway? Thought i read it here somewhere that even that they lag behind in hardware sales they make lots on the games and services.

There a more than twice as many PS4's in people's homes worldwide than Xbox One's. I'm gonna guess that's not the case.
 

jroc74

Member
Oct 27, 2017
28,996
They will be lucky to hit 50 million by the end of 2020 given the fact that they've sold less than 7 million this year :| Considering the price of the One S (that you can buy almost for the entire year at 199 and less in Europe and probably in US too) there is no way to reach 55 or 60 million even at the end of the life cycle.
Yeah, 55-60 million is probably a tall order.

Sales will start slowing down, especially with their next gen console on the horizon.
 

Zetran

Member
Oct 25, 2017
329
Lol. MS as a whole makes more profit than their competitors combined. Xbox is a much smaller division within MS and going by recent results they seem to be doing just fine. It doesn't matter if Sony is doing better .. MSis obviously happy and comfortable enough with their results to keep investing in Xbox hardware, services and 1P.
You do realize I clearly talking in the context of Xbox and PS division right? Xbox were much bigger during the original and 360 era. To the point that Mattrick directly reported to balmer. They downsize it not because they comfortable with it... Because the Xbox is not worth it
 

christocolus

Member
Oct 27, 2017
14,932
But dont MS make close the same amount of money as Sony does anyway? Thought i read it here somewhere that even that they lag behind in hardware sales they make lots on the games and services.
Yes. I remember seeing their last quarter earnings. The difference wasn't as much as many expected it to be.
You do realize I clearly talking in the context of Xbox and PS division right? Xbox were much bigger during the original and 360 era. To the point that Mattrick directly reported to balmer. They downsize it not because they comfortable with it... Because the Xbox is not worth it
That was then and now the CEO and CFO not only see the Xbox division as viable but they've made gaming (Xbox) one of the major pillars at MS and are giving it their full support. It's definitely worth it to the entire company now.
 
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Seganomics

Member
Oct 29, 2017
1,495
You do realize I clearly talking in the context of Xbox and PS division right? Xbox were much bigger during the original and 360 era. To the point that Mattrick directly reported to balmer. They downsize it not because they comfortable with it... Because the devision is not worth it

You seem to have confused a corporate restructure with a dwindling Xbox division.
 

TanookiTom

Member
Oct 29, 2017
686
Berlin
All in all considering how well the PS4 has been doing from the start, the incredibly botched launch/1st year and the very poor 1st party output and now the added competition from the Switch, those numbers don't seem too bad for the XBONE.

However I hope Microsoft really learned some valuable lessons from this. They lost a lot of consumer confidence and a lot of people that went with the XBOX this generation would perhaps not do that again should Microsoft botch up the next launch as well.

But they have been moving in the right direction, so I am feeling somewhat confident the next console launch should go down considerably better.
 

bombshell

Banned
Oct 27, 2017
2,927
Denmark
Italy, Portugal et al are very small markets though. It's diminishing returns. Even if you add them all up.

Ubisoft divides markets into North America, Europe, and rest of world for their fiscal results, and typically Europe is smaller than NA for software sales in their figures.

Overall sure Sony is up at least over 2:1 and killing it.
Your first line is funny, because just the other day you wanted to attribute almost 15m Xbox One sales to these markets in your effort to claim Xbox One sales had passed 50m.

These markets are very small Xbox markets, but they are fairly big PS markets.
 

christocolus

Member
Oct 27, 2017
14,932
That's not really true at all. Of course Sony makes a good deal more, they just don't make over 2 times more like the user base.
I never said they didn't and the second part of your comment is exactly what I was talking about. most expected them to make a whole lot more due to their far larger user base.
 

Deleted member 43

Account closed at user request
Banned
Oct 24, 2017
9,271
I never said they didn't and the second part of your comment is exactly what I was talking about. most expected them to make a whole lot more due to their far larger user base.
Sony makes significantly more money on gaming than MS. I don't know who these "most" people are, but you shouldn't let their ill informed opinions lead you astray.
 

christocolus

Member
Oct 27, 2017
14,932
Sony makes significantly more money on gaming than MS. I don't know who these "most" people are, but you shouldn't let their ill informed opinions lead you astray.
noted Matt :)
Yet difference in revenue is still large.
huh?? Lol
What LOL? Difference is large.
ok.
Only people that expect that have no idea how business works .
Things don't scale that way because of many factors .
Very true. I do expect them to do much better next gen though.
 
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Thorrgal

Member
Oct 26, 2017
12,333
But dont MS make close the same amount of money as Sony does anyway? Thought i read it here somewhere that even that they lag behind in hardware sales they make lots on the games and services.

Lol what?

It's amazing all this deluded narratives that go around...not only in gaming but everywhere else since the advent of social media. We going straight to the gutters
 

SPDIF

Member
Oct 27, 2017
359
To the point that Mattrick directly reported to balmer.
Do you realise that Spencer also directly reports to Nadella as part of his executive leadership team? He got promoted since he previously had to report to the EVP of the Windows team. I guess using this logic, Xbox is actually bigger and more important to MS than ever.
 

Kerotan

Banned
Oct 31, 2018
3,951
You really think people will pay 100$ per year to play old games? Just look how Netflix mostly dropped old content to focus on creating new movies and new TV shows and how Amazon Prime is trying to copy the model.

People won't pay for that service even with 1000 games if it's all old games. People want brand new content. No one subscribes to Netflix to watch Back to the Future, they subscribe to watch The Punisher and Bright and Narcos!
PS NOW already generates more revenue so yes people will. But I'd imagine Sony will look to have a mixture of old and new content. So Legacy content from the ps4/3/2/1 but also new content from the PS5. As for 1st party I think they will put select first party titles from the ps5 on the service after a period of time, be it 6 months or 12.

Having so much legacy content is good because they can advertise it while highlighting the newest content but also use buzzwords like the biggest game streaming service on the market or over 1,000 games.
 

olag

Banned
Oct 28, 2017
2,106
MS are in the best position they have ever been in, in terms of gaming.
I'd be very hesitant with making statements like these when we dont even know what profit margin the gaming division is making. And whilst the last spree of studio purchases is heartening, its no guarantee that their first party output will significantly improve.
 

ArmGunar

PlayStatistician
Member
Oct 30, 2017
6,527
For those who is interested in :

This FY2018, Sony Gaming Division will make
- $20.98B in Revenue
- $2.768B in Operating Profit

The best year PlayStation has ever had

To put in context, this FY2018 ALONE will make more profit than the entire PS2 profits during its 6 years ($2.224B)

I will prepare a thread for Sony's results next week with some fun facts like this
 

Deleted member 32359

User requested account closure
Banned
Nov 10, 2017
319
OP (or more ZhugeEx I guess) do you have digital ratios of other platforms? (even if just a range)
And how is it calculated, is it real data or survey or else?

Or maybe someone else can answer. Thanks.
 

nib95

Contains No Misinformation on Philly Cheesesteaks
Banned
Oct 28, 2017
18,498
MS are in the best position they have ever been in, in terms of gaming.

I don't know how anyone can say that with a straight face. They may have started doing decent ground work for the gen to come, but they're still a distant third place in both brand perception and sales, and they're also struggling with the most fundamental and core aspect of a video game console, the games or exclusives.

Compared to the 360 days, where Halo was at its prime, Gears was the big new it thing, they had incredible critical darling exclusives one after another, their online features were well ahead of the competition, and they had major third party exclusives and support to boot.

Whilst studio acquisitions are a great start, it doesn't guarantee any market, software or sales success. For all we know many of the studios they've purchased could end up releasing games to lukewarm reception. The historic portfolios of some of the said studios in recent times hasn't exactly been much to right home about (Compulsion, inXile, Undead Labs) and studios like Playground were already making exclusives for Microsoft.

Point is, on the software side, which arguably is the most important aspect of all, Microsoft is still a big question mark with a huge uphill struggle against the competition and even versus their past accomplishments. It's only going to be harder next gen as well, given Nintendo and Sony are now both much more accomplished in their portfolio of exclusives than they ever have been, whilst Microsoft is arguably at the worst they've ever been. Their success largely depends on the quality of software that they produce going forward.
 
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tyfon

Member
Nov 2, 2017
3,680
Norway
I can imagine that if you split the PS player base into "hard core" and "casuals" you will see a big split there as well in use of digital and that the "hard core" section would look more like xbox. And I have a feeling that xbox does not have as many "casuals" as the other system but I might be wrong.

The reason I am all digital on my PS4 is actually children. They destroy the blu-ray discs. But not the Switch carts so I have much more physical there.

Here in Norway there is virtually no pricing difference and often gamestop is more expensive. There are also a lot more sales on the PS store so if one does not get a game day one it's easier to get it cheap in the store. Just have to wait for a sale.

As for xbox presence, I have 4-5 friends with ps4s and one who had an xbox but after trying my psvr he sold it and got a ps4 too. The reason he chose the xbox over ps4 to begin with was that he got burned by skyrim crashing all the time on his ps3. The launch crap with DRM/always online was a major thing here.
Now they all have digital ps4 libraries that will probably lock them in to ps5.
 

Deleted member 49804

User requested account closure
Banned
Nov 21, 2018
1,868
PS NOW already generates more revenue so yes people will. But I'd imagine Sony will look to have a mixture of old and new content. So Legacy content from the ps4/3/2/1 but also new content from the PS5. As for 1st party I think they will put select first party titles from the ps5 on the service after a period of time, be it 6 months or 12.

Having so much legacy content is good because they can advertise it while highlighting the newest content but also use buzzwords like the biggest game streaming service on the market or over 1,000 games.
If you talk about the Superdata estimates, those are at least 3x above the actual number.
PS Now makes less than $50 million per quarter.
 

Seganomics

Member
Oct 29, 2017
1,495
For those who is interested in :

This FY2018, Sony Gaming Division will make
- $20.98B in Revenue
- $2.768B in Operating Profit

The best year PlayStation has ever had

To put in context, this FY2018 ALONE will make more profit than the entire PS2 profits during its 6 years ($2.224B)

I will prepare a thread for Sony's results next week with some fun facts like this

Ah! But 2.27 billion now isn't as nearly as much as 2.24 billion was back in the early 2000's.

(Am I doing this right?)
 

Zappy

Banned
Nov 2, 2017
3,738
When you consider that the launch and subsequent 3 years were as bad as it can possibly get for a games console yet it will still end up selling ~50M units in its lifetime....that only shows the strength and vibrancy of the Xbox brand is hugely greater than many on here will ever concede.

We all know MS stopped investing in gaming but now are investing like never before and see it as a key pillar moving forwards. We also know they offer a level of services so far unmatched by anything else. Yes they need the games - but their studio acquisitions show they know this. They've learned from an underpowered console. They've got a platform that is in some ways uniquely placed.

Yes they still have to deliver the games. And that is crucial. But the success of games like SoT (much decried on here but retaining a playerbase many devs dream of) shows that the MS stable can produce games that engage communities. They have hired different types of developers mainly to produce the story driven experiences as well. They've also set up potentially more diverse revenue models than their competitors moving forward - of course this is fluid and can change.
 

TheGhost

Banned
Oct 25, 2017
28,137
Long Island
They might need a step ladder to reach said jugular if they don't improve their brand image and reach outside of the US and UK.
They just need to keep up the positive press, media will actually be on their side this time around.

They can come for the jugular and still not sell as much as Sony. That doesn't mean they "lost"

Sales war they won't win, that's a given, but they will be unrecognizable from Mattricks launch.
 

Atolm

Member
Oct 25, 2017
5,829
People feel safe with Microsoft's approach to BC so of course everyone is more with comfortable buying digital than with other companies that have a more questionable track record. We all assume that everything will work on Scarlett day one. 360 BC, OG Xbox...
 

nib95

Contains No Misinformation on Philly Cheesesteaks
Banned
Oct 28, 2017
18,498
from this thread:


So there we go with Superdata credibility...

Perhaps Matt could clarify, but it seemed like he was just agreeing with a user stating that those who invest money into something, are more likely to invest more money into something. But that doesn't make such data meaningless, because for consomers to continue to invest in something, it means said consumers see value proposition in it. In other words, the product is viewed favourably enough for them to keep buying into it. If it really was a terrible offering, it wouldn't be as popular or have as many recurring subs/revenue.
 

rael_fitxr

Member
Jun 20, 2018
92
its fun watching the number go up ;)

pBf3MmK.jpg
 

ArmGunar

PlayStatistician
Member
Oct 30, 2017
6,527
About PS Now Revenue, let's take the example about last quarter (Q2 2018 - July/Sept)

Network Services Revenue (PS+, PS Now, ...) : $682m
With 34.3m PS+ subscribers for Q2 2018
With the less expensive price for 3 months ($60/4 = $15)
34.3m x $15 = $514.5m revenue come from PS+ subscription

$682m - $514.5m = $167.5m

PS Now has minimum $100m from these $167.5m revenue left for Network Services, just for the last Q2 2018

And SuperData reports that PS Now represents 52% of $273M revenue = $142m

With 167.5m left for Network Services (PS Now, PS Vue, ...) and an estimates of $142m just for PS Now by SuperData, their number seems on point
 
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Minthara

Freelance Market Director
Verified
Oct 25, 2017
7,940
Montreal
They just need to keep up the positive press, media will actually be on their side this time around.

They can come for the jugular and still not sell as much as Sony. That doesn't mean they "lost"

Sales war they won't win, that's a given, but they will be unrecognizable from Mattricks launch.

That's kind of my point. Are they getting enough positive press outside of the NA/UK areas where they sell strong? If they are, is that translating into actual interest in their products, and will that carry into the future such as their next gen offerings.

There's a lot more to this than "Well they are getting positive word of mouth in my region, that must translate for the rest of the world". That was mainly my point, what they are doing may be resonating for the NA/UK and some other markets, but I don't know if it is resonating everywhere else. Based on their sales numbers, it isn't really resonating, no matter how "good" their message is these days.
 

MrTired

Member
Oct 28, 2017
3,230
Perhaps Matt could clarify, but it seemed like he was just agreeing with a user stating that those who invest money into something, are more likely to invest more money into something. But that doesn't make such data meaningless, because for consomers to continue to invest in something, it means said consumers see value proposition in it. In other words, the product is viewed favourably enough for them to keep buying into it. If it really was a terrible offering, it wouldn't be as popular or have as many recurring subs/revenue.

from this thread:


So there we go with Superdata credibility...
From the same thread

SuperData does market research, so its information is gathered through extrapolation from the people that participate (like Nieison, who bought SuperData a few months ago).

It's an estimate, but not horrifically off-base.
Did someone say oops.
 

gofreak

Member
Oct 26, 2017
7,736
ArmGunar those are some crazy stats. More profit in 1 year then the entire ps2 geb. 2019 will probably achieve the same.

It'll be down in 2019, with a recovery expected in 2020. In their corporate strategy meeting they showed an operating profit trend over the generations, and for 2018 forecast 190bn yen, with 2019's forecast omitted, and then a forecast of 130-170bn yen for 2020. The common assumption is that 2019's forecast is probably some way south of the 130bn yen forecast for 2020, but if they revealed that it would be a dead giveaway about the timing and cost of the next transition. FY2019 is a year of preparation for the next generation - and while the revenue and OP situation is such that a gentler transition might be expected compared to previous cycles, it will probably eat significantly into FY19 operating income.
 
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