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In 2020, 114m active players each spent ~ $113.89 on average on PS Store (Games/DLC/MTX) and you ?

  • I spent more than $113.89 on PS Store in 2020

    Votes: 814 65.3%
  • I spent nothing or less than $113.89 on PS Store in 2020

    Votes: 324 26.0%
  • I'm not part of these 110m MAU (I don't have or didn't play/use my PS5/PS4/PS3/VITA in 2020)

    Votes: 108 8.7%

  • Total voters
    1,246
Sep 28, 2019
240
A good operating margin is 15%, these numbers are good for a medium sized company. Take these numbers in perspective, the overall number matters and this numbers are good for a medium sized company. Margins could be way better, but this is miles away from the $15 to $30 Billion (Dollars) a quarter that is expected from big companies such as Alphabet, Google, and Microsoft. Sony does not have a Azure/Office, AWS, Ad/search, or iPhone type business that will push it to the moon of huge earnings and getting a bigger market cap of just $125 billion.
It's such a weird take to come into a thread about Sony to say it's not the biggest company in the world... like yeah no shit
 

TMaakkonen

Member
Oct 26, 2017
2,747
Total losses : 553bn Yen (about $5B)
Total profits : 2119bn Yen (about $19B) [I include FY20 FCT]
Thanks.

The last 2-3 FYs basically wiped those clean and with digital revenue, PS is looking to make a lot of profit for the foreseeable future. Esp since they made record profits during making a loss with hardware.

Sony would have to royally mess up PS5.
 
Dec 9, 2018
21,098
New Jersey
For people confused why Electronic Products & Solutions had a greater profit margin than PlayStation, keep in mind that business includes Sony televisions, home theatre equipment, cameras, headphones, and other devices. It is kind of an umbrella kind of business since it includes so many assets, and it makes sense that that business made a ton of money this year.
 

Nolbertos

Member
Dec 9, 2017
3,314
Sony would have to royally mess up PS5.

Well I don't think Sony profits will be quite as high this gen than last gen. You can exclude Bethesda games from the revenue source and if more Publishers get bought out by MS, Amazon, Tencent or Nintendo, that revenue will shrink further. In the end, it'll have to be 1st party that has to generate more profits than ever before to sustain more revenue this gen
 

bitcloudrzr

Member
May 31, 2018
13,936
Well I don't think Sony profits will be quite as high this gen than last gen. You can exclude Bethesda games from the revenue source and if more Publishers get bought out by MS, Amazon, Tencent or Nintendo, that revenue will shrink further. In the end, it'll have to be 1st party that has to generate more profits than ever before to sustain more revenue this gen
Publishers being purchased does not necessarily mean games will stop coming to the system with Amazon and Tencent for example. Also a publisher is going to weigh a potential loss of market if they are getting purchased for exclusivity. A potential lost sale of a Bethesda game that is not on the system can be substituted for another game from the consumer perspective. Predicting revenue and profit as a zero sum game such as this does not make sense for those reasons and more.
 

mrmickfran

The Fallen
Oct 27, 2017
26,819
Gongaga
fhZK17j.png


Goddamn
at the PS3 losses

And the PS2 was still selling like crazy at the time, the PS3 was a massive money sink
 

8byte

Attempted to circumvent ban with alt-account
Banned
Oct 28, 2017
9,880
Kansas
Hopefully this means they will finally announce Everybody's Golf for PS5.

Surely.
 

Dekuman

Member
Oct 27, 2017
19,026
Matching PS4 launch is great but this is counter to the narrative last month about it being the biggest launch ever with all the implications around that.

PS4 falling off a cliff was kind of known from the shortages in the various reports from the weekly tracker threads. But as in those threads, I do not believe it's a covid or mfg issue, Sony is dropping 4 for 5
 
Last edited:

Deleted member 1003

User requested account closure
Banned
Oct 25, 2017
10,638
A good operating margin is 15%, these numbers are good for a medium sized company. Take these numbers in perspective, the overall number matters and this numbers are good for a medium sized company. Margins could be way better, but this is miles away from the $15 to $30 Billion (Dollars) a quarter that is expected from big companies such as Alphabet, Google, and Microsoft. Sony does not have a Azure/Office, AWS, Ad/search, or iPhone type business that will push it to the moon of huge earnings and getting a bigger market cap of just $125 billion.
Glad you could crawl out from under your rock to give us your quarterly review of this tiny company. Please don't leave Era for anything more lucrative or philanthropic. Your talents are better used here on a forum to talk down to "game fans"
 

Kazuma Kiryu

Member
Oct 28, 2017
1,538
Guys, just so you know, Sony is clearly not in the same league as Google, Microsoft or Amazon, these results aren't that good.
 

SgtCobra

Member
Oct 25, 2017
3,865
Guys, just so you know, Sony is clearly not in the same league as Google, Microsoft or Amazon, these results aren't that good.
Well it really depends on what you're talking about. Is it gaming revenue? Yeah then Sony's definitely in the same if not a higher league. But if you look at what those companies are worth and at what Sony's net worth is then it's true that Sony's not on their league, like at all. They have way more money to "burn".
 

jroc74

Member
Oct 27, 2017
28,996
So much to digest, lol.

So it matched PS4 launch, not bad. Really curious about the BOM now.

Regardless, dayum, so many records, firsts. An in demand product that cost more than their last console. Sony swimming in money right now. Despite Covid issues.

Wow. And once again, good job with the OP ArmGunar
 

DCBA

Member
Dec 12, 2018
1,057
A good operating margin is 15%, these numbers are good for a medium sized company. Take these numbers in perspective, the overall number matters and this numbers are good for a medium sized company. Margins could be way better, but this is miles away from the $15 to $30 Billion (Dollars) a quarter that is expected from big companies such as Alphabet, Google, and Microsoft. Sony does not have a Azure/Office, AWS, Ad/search, or iPhone type business that will push it to the moon of huge earnings and getting a bigger market cap of just $125 billion.
Hey, If Sony becomes an even bigger company they can abuse their market power even more to generate even higher profit margins and screw up customers. There is a reason that the government has an interest in splitting up those huge conglomerates.
 

modiz

Member
Oct 8, 2018
17,844
fhZK17j.png


Goddamn
at the PS3 losses

And the PS2 was still selling like crazy at the time, the PS3 was a massive money sink
This graph is shocking.
Also this means that PS5 will be the first time that sony will be making a profit on a console launch? and not only that but the most profit out of any year, thats actually insane.
 

tzare

Banned
Oct 27, 2017
4,145
Catalunya
I expected more hardware honestly, but this is how launches work. I hope they can produce as much as they can to meet demand and improve player base
 

Jade1962

Banned
Oct 28, 2017
4,259
No, it's more that there's no way of knowing for me, so that's why I'm not asserting it strongly. I also don't think that's the case, but it wouldn't be the first time console makers spin things nicer than they are (mostly MS but still). Like in this case it's also that revenue is rising because Sony is gobbling up brick and mortar shops, not because Playstation is becoming more healthy as a platform (for sure I'm not saying it isn't super healthy, just that numbers don't always mean what they purport).

But we know this is there biggest quarter ever and highest FY profits ever. We also know they are selling more games than ever. Seems like a reach to imply PS is becoming more healthy as a platform. Just the fact they had a huge profit despite a console launch and hardware production issues points to the health and stability of the platform.
 

Badcoo

Member
May 9, 2018
1,608
Crap 115 million Ps4. I hope people now understand why they're still supporting the system. That's a shit-ton of potential revenue they're leaving off the table if they put their games exclusively on ps5 right now.
 

Apathy

Member
Oct 25, 2017
11,992
Well I don't think Sony profits will be quite as high this gen than last gen. You can exclude Bethesda games from the revenue source and if more Publishers get bought out by MS, Amazon, Tencent or Nintendo, that revenue will shrink further. In the end, it'll have to be 1st party that has to generate more profits than ever before to sustain more revenue this gen

Bethesda alone isn't going to drop revenue. There are tons of other games that can and will pick up the slack, on top of any new fortnite like success story that we don't know of yet.

Holy shit I read some other responses and people really pushing some weird narratives
 

Richardi

Member
Oct 28, 2017
4,528
Bethesda alone isn't going to drop revenue. There are tons of other games that can and will pick up the slack, on top of any new fortnite like success story that we don't know of yet.

Holy shit I read some other responses and people really pushing some weird narratives
Their agenda couldn't be more obvious...
 

KillerMan91

Member
Oct 25, 2017
4,355
This graph is shocking.
Also this means that PS5 will be the first time that sony will be making a profit on a console launch? and not only that but the most profit out of any year, thats actually insane.

Gaming division made profit when PSP launched. So second time.

Edit. Looking at that graph FY2011 was also just about profitable and that was when Vita launched. So third time lol.
 

modiz

Member
Oct 8, 2018
17,844
Crap 115 million Ps4. I hope people now understand why they're still supporting the system. That's a shit-ton of potential revenue they're leaving off the table if they put their games exclusively on ps5 right now.
thing is, at the same time we are seeing that majority of those that buy the first party cross gen games, are already buying them for PS5 (in the UK for example, 75% of Miels Morales physical sales were on PS5, Sackboy was 90%, while even some 3rd party games like Hitman sell 50% of their physical units in the UK for the PS5 version), install base is not a good indicator of sales potential. in the end most of the people who buy Sony's games early on are still part of the first 20m console owners, and that is not necessarily a bad thing mind you. They are just those that are more invested in the platform and in the games they have to offer.
And in the end of the day, many of those PS4 owners will migrate to the next generation console. They will end up buying those games regardless.
 

salromano

Mr. Gematsu
Verified
Oct 25, 2017
2,932
For the past 2 quarters, Sony adjusted its numbers of PS4
And we can see those adjustments here : https://www.sie.com/en/corporate/data.html

Wow, those numbers are all over the place. If you add up all the numbers individually, you get 15.2 million units. If you add up all the FY totals + the three quarters of FY20, you get 15.1 million. And then for Sony's total up top, it says "More than 114.9 million."
 

Welfare

Prophet of Truth - You’re my Numberwall
Member
Oct 26, 2017
5,915
Wow, those numbers are all over the place. If you add up all the numbers individually, you get 15.2 million units. If you add up all the FY totals + the three quarters of FY20, you get 15.1 million. And then for Sony's total up top, it says "More than 114.9 million."
Yeah, it is probably a mess of rounding in each quarter leading to different totals than the actual.

If they shared data like Nintendo which goes to the 10K range, then this issue wouldn't exist.
 

Tiago Rodrigues

Attempted to circumvent ban with alt account
Banned
Nov 15, 2018
5,244
Well I don't think Sony profits will be quite as high this gen than last gen. You can exclude Bethesda games from the revenue source and if more Publishers get bought out by MS, Amazon, Tencent or Nintendo, that revenue will shrink further. In the end, it'll have to be 1st party that has to generate more profits than ever before to sustain more revenue this gen

Sony's 1st party output keeps multiplying in sales each gen and that won't stop anytime soon.
We also don't know how many studios will be bought by Sony. We know they are looking and Bluepoint is a given already.

It's not like everyone else is acquiring and Sony isn't doing that.

About the Bethesda games...i'm sure Sony didn't really get much from them anyway, specially during the PS4 gen. They will be fine.
 

iori9999

Member
Dec 8, 2017
2,294
Amazing quarter for Sony here and Nintendo earlier. I do wish the PS4 would finally get another price cut. Could still help them even further.
 
Oct 27, 2017
20,764
So knowing $499 model is sold at a loss, how much of that do we think is due to retailer cut and R&D? They sold PS4 at a small loss, like $15-$30, in 11/2013 but by summer 2014 were already profiting per unit. How was this done? Manufacturing costs didn't go down, it must have been R&D costs right? Like they paid it off, and no longer factored it into every unit sold?

My guess is the rumored $450 to make cost is accurate, add 10% cut for retailers ($45 per unit) and they're already at $495.

I am looking forward to not just a slim model in 2023 (3nm plz and 40% smaller plz!) but whatever Internal revisions they make to the launch model in 2021-22 to reduce costs.

they made minor changes in the PS4 in 2015 and reduced price by $50 a year before going down another $50 for slim so I imagine fall 2022 is the first real chance of a price change.
 

modiz

Member
Oct 8, 2018
17,844
Crazy that it's doing so well during a console launch. PS3 burned money and it was even worse because their TV division was also bleeding money at that time.
and now in 2 years they made more money than all the PS3 had lost to them throughout a generation.

Then next fiscal year they got Horizon, God of War and Gran Turismo 7 which will all be huge sellers, plus subs dont seem to stop growing either.
Yep, they seem be doing just great.
 

Deluxera

Member
Mar 13, 2020
2,592
Ludostrie's thread about Sony financials (in French)

Main takeways :
  • Sony's high profits are explained by the DLC and microtransaction revenue which take a colossal part (44%)
  • PS4 sales are plummeting on an unusual fashion even when compared to previous gen transitions.
  • The main cause of this is Sony's insistance on not cutting the price of the PS4 in its final years.
  • Sony thus seem to have abandoned the idea of reaching a new audience with a budget console.
 

Giant Panda

Member
Oct 25, 2017
1,689
I'm surprised Sony doesn't want to push a cheaper PS4 in developing markets for a few more years. I get they want to transition people to PS5, but there are a lot of countries where the PS5 and it's games are going to be too expensive for quite a while.
 

anexanhume

Member
Oct 25, 2017
12,913
Maryland
Finally got to digest the excellent OP. It's great to see their consumer division doing well again. Their TVs are great offerings now that they're not selling at ultra premium prices like Samsung.
 

RisingStar

Banned
Oct 8, 2019
4,849
I'm surprised Sony doesn't want to push a cheaper PS4 in developing markets for a few more years. I get they want to transition people to PS5, but there are a lot of countries where the PS5 and it's games are going to be too expensive for quite a while.

It might be network and infrastructure related too. If you look at the phone market, Apple doesn't keep old tech around to impact the adoption of new tech and evolution of their infrastructure.

I have a strong feeling (an opinion here) that Sony have had to deal with a lot of ancient infrastructure updates with the PS3 and PSP/Vita to have a modern base to work from on the PS5. So they are likely doing things to keep the PS4 from holding back their network in the future or have any security impacts as well.