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Analyst: Sony's change in strategy will help earn extra $1.2 billion in revenue


Analyst firm IHS Electronics and Media has forecast that Sony's change in strategy for PS4 will help generate $1.2bn.

In a report sent to MCV, the company says that consumer spending on PlayStation Plus subscriptions will give Sony access to an "essential and substantial new revenue stream, one which Microsoft has enjoyed since the launch of Xbox Live way back in 2002."

The company adds that PS+ subscriptions generated a "relatively minor" $140m in 2012 yet in the same period Microsoft made $1.25bn in Xbox Live subscriptions.

“Sony's decision to emulate Microsoft's paid-for multiplayer gaming strategy levels the playing field and will allow it to invest more heavily in its PlayStation Network infrastructure and services and to compete head-to-head with Microsoft during the next console generation.

“Sony is positioning itself to deliver its most profitable PlayStation business since the launch of the PlayStation 3. IHS believes that lower research and development costs for PlayStation 4 hardware, additional revenue streams from online service subscriptions and a more aggressive transition to higher margin digital content sales are combining to strengthen Sony's games business outlook even in the face of increased competition from cheap Android consoles and alternative devices eating into consumers' gaming time, including smartphones and tablets.”

Edited On 15 Aug, 2013

Comments
( 14 )
DynamiteWhyte's avatar
DynamiteWhyte 3 years ago
And hopefully it will be put in to running a better store and just general service, and getting us the better exclusives.
troublemaker's avatar
troublemaker 3 years ago
The store on PSN is god awful. I'm glad I haven't used it in months! Hopefully increased revenue will give the ability to do rolling server updates instead of having to go all 1999 and turn everything off first!
DynamiteWhyte's avatar
DynamiteWhyte 3 years ago
I quite like it since hte update, but it can be improved on. I love using their one on the website as it's quite quick and you can have everything sitting there for you going home.
PrometheusFan's avatar
PrometheusFan 3 years ago
Plus subscriptions will likely explode when the PS4 hits, so they'll certainly be looking at a massive increase in cash that can go towards fixing some of the issues PSN currently has. First step should be to fire their entire PS3 store maintenance staff and replace them with the guys who run the web based PSN Store... cause seriously, the web store is so much better than the native PS3 store it isn't even funny.
Whitey's avatar
Whitey 3 years ago
Hopefully they put that extra money into making the best service possible, instead of increasing profits.
Johno Muller's avatar
Johno Muller 3 years ago
The XBLM on 360 is easy to navigate but the website is pretty poor, the opposite of PSN
selfdestruct's avatar
selfdestruct 3 years ago
ive had ps+ from start so it dont bother me but i hope the store will be better new look store, new store too slow and i got fiber optic!
iMerle iDixon's avatar
iMerle iDixon 3 years ago
This begs the question, who in their right mind doesn't have plus anyway?
Robichoico's avatar
Robichoico 3 years ago
Well its better than them sacking people and selling off their properties and shouting LOOK! WE DID PROFIT! like they did a few month back.
Dead's avatar
Dead 3 years ago
I'm just amazed that all the fantards who used to gloat about online play being free on PS3 have quietly resigned themselves to paying to play.
Robichoico's avatar
Robichoico 3 years ago
Nope. It's one of the major things putting me off buying a PS4. I don't use online much so having to pay for it is just ridiculous.
troublemaker's avatar
troublemaker 3 years ago
Hey, at least if you decide you don't want online and don't subscribe to PSPlus, the rest of what you want isn't behind that pay wall! You still get your demos, your access to your streaming services etc etc. you don't sub to live, you can't do any of that. I hope you weren't including me in that Gloria :) I actually applaud Sony for the change. It's about time they had the opportunity for an almost even playing field with live!
Dead's avatar
Dead 3 years ago
I wasn't talking about anyone specifically, apart from maybe kevin.
PrometheusFan's avatar
PrometheusFan 3 years ago
"Well its better than them sacking people and selling off their properties and shouting LOOK! WE DID PROFIT! like they did a few month back." - That was last year, and I don't recall any "shouting" going on anywhere... unless "shouting" is some bizarre code for 'released their financials for the quarter' or something. Old news anyway, as neither of those things were a factor in their most recent financials and yet they were still in profit.

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