Games Outlook asks was Sony & Microsoft Right?
"The sales of the Nintendo Wii have been slowing down in recent months at stated below in the Osaka report:
OSAKA: Japan's Nintendo Co Ltd posted its second straight fall in annual profit on Monday, as sales of its ageing Wii games console slowed and the March 11 earthquake weighed on Japanese consumer spending. Operating profit fell 52 percent to 171.1 billion yen ($2.09 billion) in the year ended in March from 356.8 billion yen the previous year."
During Sony’s recent business segment meeting and investor presentation regarding its game and network services, the PlayStation company revealed that PlayStation 5 is the company’s “most profitable generation to-date.”
It’s the top slide of the presentation, showing that in its first four years, the PS5 generation has already hit $106 billion in sales, having almost caught up to the PS4’s total $107 billion generated.
Operating income for the PS5 generation has also already surpassed that of the PS4, having now reached $10 billion.
I wouldn't doubt it. They released a high quality system. A lot of high quality games from themselves and their support of 3rd party developers and indies. They released many high quality remakes and remasters. They released a high quality GaaS game going against the naysayers thinking Sony would abandon single player games. And they most likely are profiting a lot more than PS1, PS2 PS4 and the loss leading PS3 that drained all their profits.
Now, I'll wait to see what's cooking tomorrow. But can you use some of those profits to better support your high quality VR headset? Because, by supporting it, you can sell more games and more systems and make more profits?
If it had some rpgs I would buy right fking now. It looks dope and alot of fun, but it's biggest game resident evil 4(maybe) I've got no interest in. I'm not a fan of racing games, even with that metro game coming i was never much into that series. Rpgs would be fantastic.
Lemme know if ya wanna play some Zenith 🙌
Bought it at release, but haven't played it more than 1-2 hours but for sure on my "todo list".
Normal when they released mostly cross gen games so far. That’s a lot of money saved..
We haven’t seen what PS5 can do yet. 4years in and PS4 games still look great to me. The gen leap isn’t quite there yet.
The interesting metric for me is the $106billion in operating income/profit (not sales as mentioned in the article) reaching the same as the PS4 did with only half the consoles sold.
In particular because they all are supposed to be making the most per hardware sold after a few years when manufacturing costs are down.
So even putting inflation aside(and the higher console price), it is interesting that they could reach PS4 $ with just half the consoles sold.
Maybe there is more to the metric thats whats seen at face value, but they have clearly been making a lot more money than before on the software side (with also less games released I suppose, given its only been half the generation so far)
The bulk of the money has to be coming from the 30% cut on all games and microtransactions. Especially on all the free to play juggernauts like genshin, apex, fortnight, etc.
@Versus
They are definitely making a lot on that for sure (which the $70 price increase factors into as well), but its not like many of those games werent around for the PS4 too.
They might be counting the gen as a whole and not just PS5 itself (so extra profit from PC sales, whatever that may be)
PS+ price increase and different tiers probably amount to part of that too.
But in general, its still quite a surprising metric. Half the time, half the consoles sold, less first party games released so far and still already making more of a profit than last gen is quite something, and as mentioned, there is probably more to it that we dont know, after all, since we are talking about operating income, all the expenses they have also factor into it, so it is also possible that they have found ways to significantly reduce that + all the means of increased revenue that appear to be factoring into the equation
All in all, just an interesting situation from a business perspective
This will surely shut up all the new trolling accounts trying to spread lies and non facts in other articles comment sections before this article is posted.
Obscurely, those trolls or troll will not show in these articles as the truth is contradictory to his or their orchard-sized daily dose of copium and hopium.
Or... They're intentionally trolling you guys specifically. Because they know it upsets you so easily.
Name-dropping Orchard, after this many months? How long has it been and he's still in your thoughts?
I'm quite sure the individual is reading these positive comments downvoting & seething at the same time. Edit: It just downvoted my comment...lol!!
No I'm entertained by this individual. I love unhinged people, they are so interesting lol.
lol Tacoboto is right, this dude still talking about Orchard.
Dude hasn’t been on N4G for over a year and is still living in your head rent free
Wow! I am super impressed that in just 4 years, ps5 already caught up to the PS4's. Congratulations.
The Xbox brand has done a lot of good over the years, but their various blunders are pretty wild to look back on in their magnitude.
Ironically number 9 can save them at this point (releasing games on multiple platforms)
By “save them” you mean make more profit for Microsoft. Xbox will still be a dying hardware platform.
You could add the naming scheme for the consoles, it just confuses customers. I know they wanted to avoid traditional numbering bc it would always be lower than their competitor, but this whole 360 then One then Series thing is confusing af. Imagine a Soccer Mom trying to figure this stuff out. I still mistakenly call the Series X the One from time to time on accident.
Don't forget about the Xbox One, Xbox One X and Xbox Series X! Good luck to Soccer moms around the world.
They did that on purpose to confuse and direct attention away from the generational numbering.
MS doesn’t like reminding people that they joined the industry after others had already been involved in gaming.
For instance, they called the xbox “360” to combat PlayStation “3” because they wanted to seem like “more” than “3”, so instead of xbox 2, they opted for xbox 360. Also this had the additional benefit of selling consoles to uninformed parents who might purchase a “360” instead of a “3” by mistake, or because they thought 360 was more than 3. Kind of a disingenuous move.
They have been continuing with their confusing naming patterns for pretty much the same reasons. Frankly, it fits with who and what they are as a brand.
I can understand their reasoning, but whoever came up with that naming scheme should be fired, bad naming schemes have killed consoles (I'm pretty sure it was the major reason for the downfall of the WiiU). They should have had unqiue names like Nintendo and Sega have had for their consoles, far less confusing for the consumer.
@FinalFantasyFanatic "They should have had unqiue names like Nintendo..."
lol, you mean:
NES, SNES
GameBoy, GameBoy Advanced, GameBoy Colour, GameBoy SP
DS, DSi, DSXL
3DS, 3DS XL, New 3DS, New 3DS XL
Wii, Wii U
Switch, Switch OLED
Phil Spencer is the worst that has happened to Xbox.
They built a respectable brand up to Xbox one. Then this guy took over and things became a joke
I didn't like either person, both people damaged their respective brands and produced worse outcomes, but Phil did save the Xbox brand from being retired by Microsoft. Although in hindsight, he should have just let it die, rather than languish in limbo like it is now.
Phil Spencer was also on the team back when 360 was around, alongside Shane Kim, Peter Moore etc. I think the damage that did the most harm was the Don Mattrick "Always Online" console (ahead of its time basically). They handed Sony and Nintendo a free-pass when that was revealed. It went downhill from there. Then the corporate machine went into full swing to try and recover. They have to a degree as a games company for the masses, and less so for the core gamer. Outside USA, the Xbox brand does not sell as well as Japanese based consoles (citation needed).
Want a decision maker. The always online and TV plans was a disaster yes, but they caught up by announcing 1st party games that gamers actually kept the hype going.. until this moron took over and introduced the PC day one release.. e all know where that ended..
I dont think they were ever a respectable brand, not since the beginning, when their goal was never to be involved and share in the gaming space. I think the OG xbox was an exception because MS as a brand was still getting its foot in and so the people behind that were people of the gaming industry.
The 360 was the brand in its prime though, everything went downhill towards the end of that generation. Its staple games like Halo, Forza and Gears are what kept the console relevant and afloat for so long.
Really good video.
I remember the days with RRoD was big news on here, N4G.
Microsoft had it turbulence number of years.
Looking at the success of Sea of Thieves despite being 6 years old, time to release Halo, Forza horizon 4 & 5 on PS5. It'll help their revenue
2 of the 4 games they did already sold really well. So it's definitely going down. Idk about halo or forza but I feel those studios they've bought in the last 5 years, their coming
I found this video painful to watch. Can someone list them out?
Top 10 for me from are:
1. 2013 reveal presentation
2. Bundling Kinect 2 with Xbox One
3. RRoD or why rushing to market with hardware is always a bad idea.
4. Buying studios only to close them.
5. Ads on the Home Screen
6. Letting Halo die.
7. Letting Geard of War die.
8. Every console name
9. Charging for Xbox Live on Xbox 360 when Sony let PS3 players play online for free.
10. Cancelling release of OG Xbox games after the Xbox 360 launched.
"AI is not a substitute for human creativity. We position it as a technology that supports creativity. Creativity resides in people. We will continue to contribute to people's creativity through technology," the CEO said.
...not yet but 100% within the next 10 years!
..Then Sony will use it like the drop of a hat. They're no different to the others.
They used to be 😞 sure it was always a business, and money's always the priority, but they used to have a very strong stance on supporting artists and creativity. "Dont f#@k with the artist" was a phrase they touted a few times back in the ps1-ps3 era, a philosophy carried over from their music branch PlayStation was created from. It's not COMPLETELY gone, but it's barely there compared to what it was back then, i just want them to return to that.
I am highly encouraged by their statement about human creativity. "Dont f#@k with the artist" is exactly what they are saying. But at the same time, I don't think people understand that Sony is a corporation. If they don't realize growth, they don't get to exist. When you say 'Sony', you are talking about a bunch of investors. To speak about them any other way is a illogical and incorrect. They haven't changed. They have been a group of investors since they became a public business.
Ugh, i really wish people would stop gambling people's livelihoods by turning a project/game into their political soapbox. Im all for statements and having your own opinion, but there's more people working on this than just druckman, ham fisting your political beliefs onto just seems inconsiderate for everyone elses job security when it can result in a failure due to people avoiding it for that reason.
I play games for escape, im so tired of nearly every AAA game blatantly dragging real world issues to shove in my face when I'm trying to take a break from it all. They don't even bother to be subtle about it, quite the opposite, it's blasted and force fed to you and it's just getting exhausting
People are taking a whole interview and cutting it down to clips that make him look bad and take what he actually was saying out of context. For example he also said things like this AI has "ethical issues we need to address"
@Einhander
Why defend him at this point?
It’s not taking things out of context, he said what he said.
Old ND would never talk about soulless AI taking over so many creative things they are well known for. The whole “ethical issues” is just a good PR spin people who push this crap fall back on to make their statements not seem as bad. So many AI lovers do this.
AI has no place is so many creative based things.
Well yeah, because everyone else is using it so they need to stay competitive. It's the same as paid online, they didn't want to go that route but their competition was making so much money they needed to add paid online just to keep up.
AI will never replace humans in game development in terms of conceptualizing new games. Humans still need to come up with the ideas and what they want to implement. However much of the day to day menial coding could be AI driven to reduce production time and team size. I could also see AI being used for bug testing/optimization that could lead to better quality games at launch. I'm actually very optimistic about how AI can positively impact game development.
People that aren't software developers just don't understand the benefits of AI. People who's only exposure to A.I is the Terminator movie and other related sci fi films won't understand the benefits it provides.
It's not about replacing human labor. It's about making human labor easier.
Many years ago, I had laser eye surgery done. It was performed by a robot. The doctor took my measurements and calibrated the machine to make sure it would do what needed be done. And then the robot corrected my vision in 10 seconds.
15 years later and I still have 20/20 vision.
AI in and of itself is not a 'bad'. Money is bad. Money is evil, and corporations will do whatever they can to get more of it. They will find ways to implement AI to replace as may jobs as possible. This isn't even up for debate. It is the charge of the corporation to maximize returns for the investors. They have no choice. I'm a developer and I know that my job will absolutely be replaced. Therefore, I have decided to become an AI dev. AI has a lot of potential to help us solve problem on a scale most can't even imagine. The issue, as ever is that our monetary system only ever allows us to focus on greed and fiscal growth.
But I am a pragmatist. Perhaps an AI model can be built to help protect us from our most dangerous instincts and habits. And perhaps Congress can pass laws to protect us from people who would use AI to manipulate and control us (spoiler: they wont).
Progress is inevitable. Nobody driving cars today is complaining that the horse and buggy is no longer around. Yes, some jobs will be lost but guess what? With innovation comes new job opportunities. It's how the cycle of the job market works.
Y wouldn't they go down, I mean seriously..... how much more do they need to sell ? almost everyone has a freaking wii, I'm amazed it took this long for its sales to go down.
It was only bound to happen.. I honestly don't see a Wii 2, or 3DS been much of a success see most causals will not fork over money to buy an upgrade.
Can you say 'market saturation?'
i can't believe it. wii is dead thats why nintendo is moving on. ps360 still sells and will out sell wii before there successors are released
Yeah they were right 87 million units and 6 years later....... Michael Pachter was also right about the Wii HD...... eventually its bound to happen.