Support NeoGAF

[Bryank75]

Sony has lost well over 3 Billion dollars since updating PSNOW. PlayStation cut the price and added exclusives such as God of War and Uncharted 4... however, it seems that investors see this move as weakening the platform overall and detracting from potential sales and thus other revenue streams such as PS+ and 3rd party games.

Search - MarketWatch

Search MarketWatch for the latest financial news and market data.

www.marketwatch.com

Sony Stock Dips After Cloud Gaming Service Price Is Slashed

As rivals Google and Microsoft make inroads in the cloud, Sony adds new titles and lowers its prices to fend off the competition.

www.barrons.com

 

[mcjmetroid]

Shortsighted as always investors

 

[FranXico]

Time to buy.

 

[JoeyWestSide]

Except the whole market is down from yesterday...

 

[Bryank75]

Except the whole market is down from yesterday...

Shhh I have an agenda here!

But seriously, you'd think it would stay the same or go up if they saw it as a valuable move.

 

[Geki-D]

It's odd that the world is apparently waking up to the fact there are exclusives on PS Now when there have been exclusives on it for years already...

 

[Real]

Shhh I have an agenda here!

But seriously, you'd think it would stay the same or go up if they saw it as a valuable move.

Not true, the service means very little to the platform as a whole currently.

Sony is much more than PlayStation.

 

[a multicultural team of v]

Just.... No.

 

[mejin]

oh no, it will fail like xbox.

 

[Fake]

Sony is Doomed Eternal.

 

[Vawn]

Shhh I have an agenda here!

But seriously, you'd think it would stay the same or go up if they saw it as a valuable move.

It sure sounds like it.

Not true, the service means very little to the platform as a whole currently.

Sony is much more than PlayStation.

And PlayStation itself is MUCH more than PS Now.

 

[Miyazaki’s Slave]

It’s easier to take a yearly subscription from $59.99 to $69.99 than it is to go from $99.99 to $110.99.

Lower the price of the service now while you are heading into Q4 then next fiscal year (when you have lots of new announcements.... and when there is going to be a lot of eyes on streaming service/quality) slowly increase the price as you add new features.

It’s a way to positively impact your revenue cycles to show growth and build perceived value in a product line (YOY growth etc).
I equate it to early access on steam where in you release a title at a discount while building its content then increase the release price when you reach a target point (content wise) for market saturation (ie Full version is available now come get it at a 20% price increase).

Not saying this is there approach, just shower thoughts....

 

[xool]

A gnat's fart in the overall scheme of things :

(from the same source)

The market is a best - mindless; at worst - criminal.

Can anyone explain the low in April 2019 ?

Clue - it's fucking random

 

[Journey]

Sony has lost well over 3 Billion dollars since updating PSNOW. PlayStation cut the price and added exclusives such as God of War and Uncharted 4... however, it seems that investors see this move as weakening the platform overall and detracting from potential sales and thus other revenue streams such as PS+ and 3rd party games.

Search - MarketWatch

Search MarketWatch for the latest financial news and market data.

www.marketwatch.com

Are you sure that's the reason?

 

[cireza]

Please somebody say that what Xbox has been doing is bad to please OP.

oh no, it will fail like xbox.

Oh, done already, that's good.

 

[Northeastmonk]

I wonder sometimes if investors analyze without understanding what it’s like to be a console owner. In my mind the people joining the service weren’t going to spend $59.99 USD on the AAA game anyway. If anything, they could have bought it used or bought it somewhere that won’t actually profit Sony.

Nintendo sent me a 30% off voucher for “selected” digital games off the eShop for my bday. They literally couldn’t allow me to pick the game I wanted to buy with a coupon. That must be what these investors are looking for.

 

[longdi]

Except the whole market is down from yesterday...

As of now, Microsoft lost 36billion market value since Sony cut their psnow prices. Hehe.

 

[CuteFaceJay]

What does this mean? No one was using the service anyways with the price it was at before the change.

 

[thelastword]

Well PS NOW was very profitable for Sony, with the adjustment to price and putting some of their top tier games on the service, it's obvious they would lose some revenue.....

I think, they've made and are making so much money with PS4, it's better to take the loss now before next gen arrives.... The plan is to expand PSNOW by quite a bit before PS5 arrives and they will again overhaul the service in November 2020 on a totally redesigned
and overhauled PlayStation Network, which will synergize all PS services under one account on newer faster servers, in much more locations worldwide .....

Anybody who is not aware of Sony's plan to revamp PSN and all of its services have simply not been paying attention.

 

[Nikana]

This has very little if nothing to do with PS Now.

 

[Bryank75]

Are you sure that's the reason?

I didn't say it was the reason.... I worded the title very carefully. haha

Of course you'd have to ignore my little written piece beneath the heading... that was me just thinking out loud.

 

[Virex]

What does this mean? No one was using the service anyways with the price it was at before the change.

Yeah man. No one is using it

 

[mckmas8808]

As of now, Microsoft lost 36billion market value since Sony cut their psnow prices. Hehe.

If true.......YIKES!

 

[CeeJay]

Well PS NOW was very profitable for Sony, with the adjustment to price and putting some of their top tier games on the service, it's obvious they would lose some revenue.....

What if they triple the userbase of PSnow though by the lower price of entry?

 

[Heimdall_Xtreme]

Thanks to Jim Ryan.

The worst nightmare for playstation has begun!

Thanks to him... The thing will be worst.

 

[Mattyp]

Yeah man. No one is using it

We know this is massive guesswork when they "guessed" Game pass subscribers being low as fuck then Phil came out saying they have millions signed up instead. Think Sony has the only one to publicly state a number of 700,000.

The entire market is down and has 0 to down with PS now. This thread needs to be fucking trashed.

What if they triple the userbase of PSnow though by the lower price of entry?

That's the goal, if you can get millions more people paying $10 a month the service starts to bring in serious bank.

 

[Saber]

They might bankrupticy at any moment now.

 

[Virex]

We know this is massive guesswork when they "guessed" Game pass subscribers being low as fuck then Phil came out saying they have millions signed up instead. Think Sony has the only one to publicly state a number of 700,000.

The entire market is down and has 0 to down with PS now. This thread needs to be fucking trashed.



That's the goal, if you can get millions more people paying $10 a month the service starts to bring in serious bank.

I fully agree with you my brother.

 

[diffusionx]

This isn't aimed at the OP, but people really need to stop framing day-to-day stock movement as "Company lost/gained ____ billion after _____". It just has no basis in anything related to finance and is solely about advancing narratives. As such it just is worthless.

 

[Bryank75]

This isn't aimed at the OP, but people really need to stop framing day-to-day stock movement as "Company lost/gained ____ billion after _____". It just has no basis in anything related to finance and is solely about advancing narratives. As such it just is worthless.

Well, it's not that I pulled it out of nowhere... it had already been framed like that by Barrons

Sony Stock Dips After Cloud Gaming Service Price Is Slashed

As rivals Google and Microsoft make inroads in the cloud, Sony adds new titles and lowers its prices to fend off the competition.

www.barrons.com

 

[thelastword]

Yeah man. No one is using it

Yeah no one is using PS NOW, mind you, Gamepass is a success you know, but PSNOW blows.....I've seen people defend untruths so much the last few months it's unsettling...….It's opposites world, high means low, success means failure and vice versa...…..People argue these things even in the face of stats and graphs....It's definitely a bizzaro world.....

What if they triple the userbase of PSnow though by the lower price of entry?

Yeah, that's the plan, right now they need more subs to make as much profit or revenue as before.........Not saying I'm against it, PSNOW needed to expand....I'm just saying they should take the initial loss now before PS5 arrives, which is what they're doing, they will improve the number of PSNOW subs and have a whole library of PS4 games to put on the service by November 2020.....So yes, it's a good thing to lower the price of entry right now...….So it's full on sailing after PS5 comes along, with an overhauled PSN, there will be no limits to the number of subs they can have on the service streaming because they will be on new servers ready for that expansion......

Also, this is great for marketing, no BS, just the games........When people who never played consoles or even game on their PC can now play GOW, UC4 etc.....They have 5-10Mbit connections, they can try since they don't need great PC hardware, and that's another way in which Sony can bring more people into the ecosystem, said folk can look into buying a PS5/PS4 if they like what they play, especially the exclusives, their trophies would transfer as well.........One thing's for sure, we all look at a game like GOW which sold a tonne, yes, but it will continue selling at retail regardless......Games can sell much more than they do, it is now ripe for Sony to expand the market.....and hitting people who never bought consoles, who only have an internet connection on a potatoe PC is a good way to accomplish just that......

Look at RDR2 or GTA5, there are lots of people out there who are willing to buy games or be introduced to games that exist...….PSNOW will be a good marketer for Sony's games in markets which often don't see them......I hope Sony goes bananas on marketing PSNOW as well in the 1 year left before PS5 arrives...….build subs and mindshare like they are going crazy....

 

[MiyazakiHatesKojima]

 

[Spukc]

Well selling my ps4.
That's it total flop

 

[rəddəM]

TLoUP2 pre orders alone will make Sony Trillionaire.

 

[Jigsaah]

Sony has lost well over 3 Billion dollars since updating PSNOW. PlayStation cut the price and added exclusives such as God of War and Uncharted 4... however, it seems that investors see this move as weakening the platform overall and detracting from potential sales and thus other revenue streams such as PS+ and 3rd party games.

Search - MarketWatch

Search MarketWatch for the latest financial news and market data.

www.marketwatch.com

Sony Stock Dips After Cloud Gaming Service Price Is Slashed

As rivals Google and Microsoft make inroads in the cloud, Sony adds new titles and lowers its prices to fend off the competition.

www.barrons.com

Investors are idiots. Sony's finally getting serious about their subscription offers. They see gamepass and what it's potential is and they know if they can offer something similar with even better exclusives then they are essentially leaving money on the table if they don't do this.

 

[phil_t98]

Well PS NOW was very profitable for Sony, with the adjustment to price and putting some of their top tier games on the service, it's obvious they would lose some revenue.....

I think, they've made and are making so much money with PS4, it's better to take the loss now before next gen arrives.... The plan is to expand PSNOW by quite a bit before PS5 arrives and they will again overhaul the service in November 2020 on a totally redesigned
and overhauled PlayStation Network, which will synergize all PS services under one account on newer faster servers, in much more locations worldwide .....

Anybody who is not aware of Sony's plan to revamp PSN and all of its services have simply not been paying attention.

People don’t like to loose money, putting the service cheaper suggests something is going on. Not enough subscribers from their own point of view? PSNOW has a decent amount of subscribers but the lower price will attract more.

but it’s a loss for the next year or two but long term gain. 3 billion is a lot to loose off the value no matter how you look at it

 

[NickFire]

Maybe it's related, maybe it's not. No personal opinion on that. But I will say that if it is related to concerns over reducing sales, I think that would be misplaced. Sony does not add brand new games to the service as I understand. And adding things like a month or three months of still popular games, will probably lead to sales I would think. GTA for example. If you have't played it yet, and only try it because of PS Now, I tend to doubt a sale is lost by the trial period. If anything, I would think you increase the chance of a post trial period sale to someone who otherwise would never have tried it.

 

[meirl]

Meanwhile Microsoft is at +1%. Nice.

 

[Explosive Zombie]

Imagine being as dumb as an investor, PSNow was dead in the water before these changes.

 

[Vol5]

Like investors sold off $3B of stock because of an announcement. Articles are click-bait. The market moves and it seems to have moved right after the announcement. It's called coincidence.

 

[Explosive Zombie]

Like investors sold off $3B of stock because of an announcement. Articles are click-bait. The market moves and it seems to have moved right after the announcement. It's called coincidence.

Actually yes... investors make new decisions based on big changes/announcements like this... if they had info we don't have that's called insider trading and illegal, lol.

 

[Vol5]

Actually yes... investors make new decisions based on big changes/announcements like this... if they had info we don't have that's called insider trading and illegal, lol.

It's a 2% drop (which has almost recovered 1% today). Any investor worth his salt would understand it's a play to entice more people to the platform. Stocks are long term. I'm not suggesting stock wasn't sold, but $3B based on this alone? The articles are click-bait. If it lost 10-15% then we can talk.

 

[Pallas]

Investors are flaky with any company, slightest move could gain or lose millions upon billions of dollars.

With that said, I would also attribute that Layton’s departure could of had an impact on their stocks as well.

 

[Jigsaah]

Not true, the service means very little to the platform as a whole currently.

Sony is much more than PlayStation.

That like you saying Im much more than my schlong...I mean yea...but not much more...it pretty much runs the show.