It's not. After Q3 (Oct-Dec) there's always a big decline in MAU, holiday season it's their peak.
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It is the same challenge GP is also facing. The console player base is only so big. Both need to expand to PC with stronger efforts.
I am surprised at Sony and how they are handling their PC releases. They have big gaps between releases and no obvious plan of releases. For example after Horizon their schedule is light on consoles and they could offset that a bit with PC releases but only thing we know is Uncharted 4+LL and even that doesn't have official release date. And on top of that it is 4th game in the series.
In my opinion they should have capitalize on Elden Ring release and push for Returnal on PC now in May/June for example.
Spider-Man is another game that would sell well on PC in this quiet period.
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This is all we got from what I remember 250% roi on Horizon + sales in China, Indi and Russia.
Yea it's weird. They have large opportunities that they are not taking advantage of.
I mean releasing PS5 only games on PC is another beast. I've asked this before (and gotten some good answers) but is Steam ready for $69.99 Demons Souls or Returnal?
Even console market is not fully ready for those prices. And again PC market it's separate beast that requires nuance. And many publishers don't understand that. Sony has good games for sure but PC market is far bigger than their console corner so they need to adapt. If that means lower prices on PC then they need to be ready to swallow that pill. And Returnal is now year old game so 70€ price is not good one way or another.
Consequences of releasing their exclusives on pc coming to light, half way serious
Since there's no PS5 consoles available around here, I've pretty much exited the Sony ecosystem and cancelled PS+ as well. I'm obviously also not buying any games either. I know a few other people like this.
I usually spend big $$$ in the Sony ecosystem every year. Now it's zero.
Their inability to ship hardware is definitely hurting them.
I usually spend big $$$ in the Sony ecosystem every year. Now it's zero.
Their inability to ship hardware is definitely hurting them.
The thing about a stagnating (or shrinking) userbase and a rise in earnings is, that the company makes more money out of every single user. If there is no fresh blood, the company will try to get even more money out of their existing userbase which will end either in a userbase that gets "milked" more and more, or a declining userbase and/or declining financials for the company
What's weird when their profits are still at record highs?
Every time there is PS5 stock it sees a boost in FP games.
Seems the strategy is working for Sony at this point.
I think many here are jumping the gun to say Sony should put their games on PC earlier when not much here suggests they should do that.
They are still making money. They are releasing a tiered PS+ service, and they expect to release many more consoles this year.
We've already seen more stock the last month resulting them being first in April in the UK i believe.
Once the console situation is better this is all moot
They are still making money. They are releasing a tiered PS+ service, and they expect to release many more consoles this year.
We've already seen more stock the last month resulting them being first in April in the UK i believe.
Once the console situation is better this is all moot
100% agree. They are too married to the old model of selling games exclusively for a box that sits in the living room.
I agree but it isn't easy to time a port necessarily. GoW took 2 years, granted that wasn't full steam ahead work and using a custom engine, but it still takes time.
This is not bullshit. The current stock price is based on peoples estimates of what the performance is. The expectation is already priced in to how people are trading. If actual results are lower than expected, how could it possibly be considered good news. It means you did worse than expected! It doesn't mean the company is failing or anything but it definitely means the information people thought they had about how to price your stock was not fully accurate. Rationally, if you are buying and selling something based on its future performance, how could it work any other way? I just don't even get the complaint that this is bullshit.
Furthermore, these are Sony's own estimates in the OP not analysts... Of course analysts can be wrong. If you are so sure which analysts are wrong there is lots of money to be made trading against them lol.
Digital Software at 71%. I feel like every company is above 70% at this point. It's wild to think about physical games going the way of vinyl (enthusiast product).
Prior to 2018, I couldn't imagine being an all-digital owner… and here we are… I haven't purchased a physical game since 2017.
Prior to 2018, I couldn't imagine being an all-digital owner… and here we are… I haven't purchased a physical game since 2017.
This is kind of a joke but even if I bought a physical copy I have nobody to lend it to. None of my close friends (geographically) can find a PS5.
I wonder how much of that is driven by the digital only PS5. With such high demand, I imagine that some people have switched to digital due to only being able to acquire the digital only PS5. Would be interested in seeing their internal expectations on their digital growth vs what we see has happened. I imagine they are quite happy about it.
Wait, is PS5 stock readily available? I thought both new generation consoles (PS5 and Series X) were still difficult to come by. Has the manufacturaing shortages been resolved?
What markets are flooded with consoles that Sony has to buy back? This seems so odd to me.
I posted this in the PS OT, but the more interesting take-away is the YoY revenue growth:
$7B (920B Yen) YoY revenue growth forecast
- Even with their 18M PS5 unit forecast for FY22, that equates to 'only' an additional $3.12B assuming a PS5 ASP of $480 (given splits between disc vs disc-less); compared to 11.5M unit's sold in FY21.
Remaining $3.88B potentially coming from:
- A decent portion must include PSVR2 & increased PS5 peripherals and higher 1st party/PS+ sub up sell revenue. Can't imagine the latter two making up the delta entirely, so safe to say PSVR2 is launching before March 31st 2023? Assuming $500 ASP for PSVR2, 2M unit sales = $2B.
- 1st party software increase is also mentioned. Since we had GT7 & HFW launch this FY, I'd imagine along with GoW Ragnarok, other major title(s) expected to launch (assumption), along with more PC port residual sales (assumption). Additional software tie-in's from new PS5 customers i.e., HFW, T7, GoW Ragnarok etc., as well.
- Exchange rate adjustments are also a factor, although a smaller portion, along with Bungie revenue inclusion once closed (few hundred million?).
- Future acquisition revenue unlikely to be factored in, since they would not know when it closes (needs to be within FY) nor who specifically.
$7B (920B Yen) YoY revenue growth forecast
- Even with their 18M PS5 unit forecast for FY22, that equates to 'only' an additional $3.12B assuming a PS5 ASP of $480 (given splits between disc vs disc-less); compared to 11.5M unit's sold in FY21.
Remaining $3.88B potentially coming from:
- A decent portion must include PSVR2 & increased PS5 peripherals and higher 1st party/PS+ sub up sell revenue. Can't imagine the latter two making up the delta entirely, so safe to say PSVR2 is launching before March 31st 2023? Assuming $500 ASP for PSVR2, 2M unit sales = $2B.
- 1st party software increase is also mentioned. Since we had GT7 & HFW launch this FY, I'd imagine along with GoW Ragnarok, other major title(s) expected to launch (assumption), along with more PC port residual sales (assumption). Additional software tie-in's from new PS5 customers i.e., HFW, T7, GoW Ragnarok etc., as well.
- Exchange rate adjustments are also a factor, although a smaller portion, along with Bungie revenue inclusion once closed (few hundred million?).
- Future acquisition revenue unlikely to be factored in, since they would not know when it closes (needs to be within FY) nor who specifically.
It's interesting how much variance there is in different markets. We really only get the Uk splits, which often favor or are equal between physical vs digital, along with Japan being heavily physical (for PS). It must indicate North America is disproportionately digital.
Although does that include DLC/MTX? That could explain a large chunk of that.
Brazil is Playstation land and that shit is impossibly expensive here to the point I'm considering it will only normalize with a Slim version of sorts.
Don't they separate it by add-on vs software or something similar? I suppose it could be total revenue digital vs physical, but I think they do make the distinction in their reports
Could be. Haven't read the report in detail, I'll run through it later to confirm.
Well, if you duct tape them both together and say "hey presto", your two PS5s become a PS10.
It's only going to climb higher. I fully expect 90-10 in the next 5 years.
I haven't put a disk in my XSX or a cartridge in my Switch. My PS5 is the DE.
Lol no. PS5 are still nowhere to be seen in store. Sold out as soon as they appear in stock.
They don't mean physical console stock. They mean stock as in shares.
I think we were ~70% physical at this point of the PS4's life right? Absolutely insane growth for Sony as a storefront and yeah I think we are easily tracking towards a digital-only PS6 model being the standard and the disc option being the rare one
Stock buyback as in buy your own shares to increase individual share price. Not physical "stock". Lol.
The issue is people cant buy new consoles. You cant find a PS4 or PS5, thought it would be obvious to people why MAU has declined. Haven't booted up my PS4 on all of this year. I want a PS5 and not playing anything on console till I get one and I'm sure there are lots of others like me. It is what it is.
I'm the village idiot. My apologies. Thank you for the explanations!
I'm not familiar with stocks. May I ask why Sony has to buy back their stocks when they fall short of their estimation goals? What does this do?
Think of shares in the market as a finite number of things you can buy. As a really basic example, imagine there are 100 shares in the market with $1/share for Sony. So you and I can technically buy all the hundred shares for $100. But Sony believes this is artificially low. What they do now is " buy back" their own shares to increase the stock value. For example, Sony buys back 20 shares. Now we are left with only 80 shares in the market, but $1/share price is now increased to $1.25/share. (1.25 x 80 = 100)
This allows shareholders to execute stock options at better price and also lift the overall value of the stock.
Companies do this all the time. Normally in my experience companies do this when they believe they are really good financial-health wise, and that investors are still confident in their stock to purchase it at a higher price, but in Sony's case it looks to be different. I'm not sure why they did it now. The other thing to keep in mind is that stock buy back increases the overall debt of the company.
Yea yea, it's not an easy thing to solve for sure.
I think they should be far more aggressive with their PC expansion. nd deliver games quicker, basically day 1.