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Sony president wants to improve margins on their multi-platform releases (Updated w/ analysis)

See my previous post.

I'd never port DeSo or Bloodborne to PC as it would ruin my longstanding "never" joke.

Seriously though, Sony's porting strategy has been all over the place. I'd have done it differently, though cross-generation kind of messes with my thoughts. I'd would have just ported all previous generation titles once my new platform launches and do so at "budget prices" of $49.99 starting with the older titles first so that there is always a 5-6 year gap and couch part of it as game preservation. 1-year just feels like a "why bother" in the first place, beyond my aforementioned development concerns. Though I do understand why they'd want to get TLOU over to PC as soon as possible to take advantage of the TV show popularity.

I agree and disagree with you.

I don't think it's been "all over the place"

I think one element to consider if what studio is doing the porting. That complicates factors a lot. Releasing a game a generation old even at a slightly reduced price, doesn't help it in the sales department. Especially when these games can be played for considerably cheaper on the older hardware.

Sony is currently balancing transmedia opportunities, their best selling titles, and small games that might have underperformed on PS5 like sackboy and returnal.

Sony's biggest titles have all hit PC with the exception of Gran Turismo.
 

StreetsofBeige

Gold Member
I see the above point being bought up a hell up a lot, but I never see any numbers to back up the degree of platform shift of existing PS only userbase to PC. Yes, there will be some shift, but the only relevant question is this: Is the possible upside from added copies sold on PC (and let's remind ourselves that profit margins per incremental copy is very high) outweigh the possible downside from platform shift from existing PS user? I'm sure the financial analysts at Sony are looking very closely into this exact scenario.

Before someone mentions "look at what PC day and date did to Xbox", there are two main differences: (1) PS won't go day and date on any subscriptions; (2) it's the subpar quality of Xbox lineup which I believe is the most material reason for the Xbox slump, even more so than their channel strategy.
If this was 2019, you'd have zero multiplatform gaming from Sony aside from Helldivers 1 I think which was on PC way back. Since then, we've got:

- Corporate slides talking about PC strategy
- Sony buying Nixxes for ports and opening a PC Publishing studio
- Tons of ports (not all, but most of their franchises have been ported to PC, even including sequels like Horizon FW coming soon)
- MLB The Show on Xbox and Switch (dont care if MLB forced it or not. Sony can always shit down the franchise to not give Nintendo and Xbox gamers a taste of their baseball games)
- So far their GAAS PC strategy is day one as stated
- Even PS gamepads can work on PC games
- Their top sub plan allows streaming to PC

So it shows with the above points, the company has realized the incremental gains from doing them outweigh that vague theory if Sony goes porting it's a disaster as PS gamers permanently jump ship to PC. If it is so bad, then Sony wouldnt do any of them and make all PS games and even PS gamepads work only in the PS ecosystem.

Gamers got to realize that game forums are not the typical gamer. Would a gaffer into gaming and spending go perma PC? Maybe. But out of all the typical family fun console gamers I dont see the average person saying to themselves, Oh look! Spiderman 3 is on PC right away. Lets sell our PS5 and go buy an Nvidia rig to play it.
 
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bender

What time is it?
I agree and disagree with you.

I don't think it's been "all over the place"

I think one element to consider if what studio is doing the porting. That complicates factors a lot. Releasing a game a generation old even at a slightly reduced price, doesn't help it in the sales department. Especially when these games can be played for considerably cheaper on the older hardware.

Sony is currently balancing transmedia opportunities, their best selling titles, and small games that might have underperformed on PS5 like sackboy and returnal.

Sony's biggest titles have all hit PC with the exception of Gran Turismo.

Sackboy would be my example of all over the place. Why port that? GT makes some sense to not port considering the competition on PC. But if they really wanted a big seller, they should have ported DeSo.
 
Sackboy would be my example of all over the place. Why port that? GT makes some sense to not port considering the competition on PC. But if they really wanted a big seller, they should have ported DeSo.

My theory was Sony wanted to test Sumo Digital to see how they would handle PC ports before giving them something more important to work on.
 
The billion dollar question is how large that shift would be. And how much do you irrecoverably damage your brand by finding out. I still think the % would be incredibly small, but that's easy enough for me to say.
Value of a brand (or anything) in financial terms can be looked as a function of three things: growth, profitability and risk. As far as I can see, Sony already know that leaning more PC (via gaas and later PC ports) is pathway to more growth, higher margins and less risk. So they believe it's actually a path to MORE value, not less. If the numbers show that going day and date could add more growth, higher margins and improve their risk profile, they will do it.
 

StreetsofBeige

Gold Member
I don't think it does.

EXPERIENCE ALL THE BENEFITS

PLAYSTATION PLUS PREMIUM
Enjoy all the PlayStation Plus benefits from the Extra and Essential plans, plus exclusive benefits like game trials, cloud streaming, and the Classics Catalog.

Play on PC
Stream games from the PlayStation Plus Game Catalog and Classics Catalog to your PC on demand*. Save your progress to the cloud and pick up where you left off on your PS4 or PS5 console, and connect your controller for a true PlayStation experience on PC.
 

bender

What time is it?
Value of a brand (or anything) in financial terms can be looked as a function of three things: growth, profitability and risk. As far as I can see, Sony already know that leaning more PC (via gaas and later PC ports) is pathway to more growth, higher margins and less risk. So they believe it's actually a path to MORE value, not less. If the numbers show that going day and date could add more growth, higher margins and improve their risk profile, they will do it.

Porting is an inexpensive way to prolong the sales cycle of a product, but it's a balancing act as you don't want to push people out of your ecosystem which has far more value than jus 100% of the sale of any given title. And that's why it's a difficult trigger to pull. They can also speculate about MORE and not less all they want, reality could still smack them in the face. I tend to agree with the assessment, but I don't have to lose any sleep over it if I'm wrong.
 

EXPERIENCE ALL THE BENEFITS

PLAYSTATION PLUS PREMIUM
Enjoy all the PlayStation Plus benefits from the Extra and Essential plans, plus exclusive benefits like game trials, cloud streaming, and the Classics Catalog.

Play on PC
Stream games from the PlayStation Plus Game Catalog and Classics Catalog to your PC on demand*. Save your progress to the cloud and pick up where you left off on your PS4 or PS5 console, and connect your controller for a true PlayStation experience on PC.

Interesting, that is news to me
 

StreetsofBeige

Gold Member
Interesting, that is news to me
Even the old PS Now sub plan had PC streaming. It was just one of those feature perks they never really promoted. It's similar to their PC porting strategy (excluding Helldivers 2). The feature or PC ports are there, but they dont promote it much or make it a focal point of their gaming strategy.
 
Even the old PS Now sub plan had PC streaming. It was just one of those feature perks they never really promoted. It's similar to their PC porting strategy (excluding Helldivers 2). The feature or PC ports are there, but they dont promote it much or make it a focal point of their gaming strategy.

I know it used to work, but I thought they took it away.
 

Killjoy-NL

Member
Value of a brand (or anything) in financial terms can be looked as a function of three things: growth, profitability and risk. As far as I can see, Sony already know that leaning more PC (via gaas and later PC ports) is pathway to more growth, higher margins and less risk. So they believe it's actually a path to MORE value, not less. If the numbers show that going day and date could add more growth, higher margins and improve their risk profile, they will do it.
In a way it makes sense, but MS has shown the negative to this approach and it's a very big one.
 

bender

What time is it?
Day 1 PC releases is a major reason for the decline of Xbox.
It has been a hot-topic since day 1.

I think the One was already floundering by then but I could be misremember the dates. Cross Buy always felt like a Hail Mary to try to salvage the brand, just like their backward compatibility program. But that particular move was probably like handing a drowning man a cinder block.
 
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Killjoy-NL

Member
I think the One was already floundering by then but I could be misremember the dates. Cross Buy always felt like a Hail Mary to try to salvage the brand, just like their backward compatibility program. But that particular move was probably like handing a drowning man a cinder block.
Not gonna deny their entire strategy has been a hot mess.
Maybe even starting during the gen of X360.
 
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In a way it makes sense, but MS has shown the negative to this approach and it's a very big one.
Xbox's main problem is the quality of their games. Loads of underwhelming output this gen: Redfall, Starfield, FM. Without a solid lineup it's difficult to succeed, no matter what your channel strategy is.
 

James Sawyer Ford

Gold Member
I see the above point being bought up a hell up a lot, but I never see any numbers to back up the degree of platform shift of existing PS only userbase to PC. Yes, there will be some shift, but the only relevant question is this: Is the possible upside from added copies sold on PC (and let's remind ourselves that profit margins per incremental copy is very high) outweigh the possible downside from platform shift from existing PS user? I'm sure the financial analysts at Sony are looking very closely into this exact scenario.

Before someone mentions "look at what PC day and date did to Xbox", there are two main differences: (1) PS won't go day and date on any subscriptions; (2) it's the subpar quality of Xbox lineup which I believe is the most material reason for the Xbox slump, even more so than their channel strategy.

It’s just common sense

On Xbox, you get all the third parties and MS exclusives

On PlayStation, you get all the third parties and Sony exclusives

If both are day and date on PC, you literally get everything by just buying a PC. You don’t need to pay for online multiplayer either.

It leaves both MS and Sony as the odd man out. And no doubt there will be console-like PC builds such as steam machines that gain more popularity. Both MS and Sony lose in this scenario, and Sony looses far more. Sony is writing their ecosystem away by releasing everything at the same time on PC
 

Killjoy-NL

Member
Xbox's main problem is the quality of their games. Loads of underwhelming output this gen: Redfall, Starfield, FM. Without a solid lineup it's difficult to succeed, no matter what your channel strategy is.
They're already wayyy past "just release good games".

Even Spencer said it, but Xbox fanatics are ignoring his words.
 
Porting is an inexpensive way to prolong the sales cycle of a product, but it's a balancing act as you don't want to push people out of your ecosystem which has far more value than jus 100% of the sale of any given title. And that's why it's a difficult trigger to pull. They can also speculate about MORE and not less all they want, reality could still smack them in the face. I tend to agree with the assessment, but I don't have to lose any sleep over it if I'm wrong.
PS will have to decide soon. Right now their margins are at 6%, and this is with mostly with that traditional mindset and strategy of exclusives/eco-system first. Let's be honest, 2 years late PC ports and PC Gaas are just Sony basically dipping its toe into a different strategy. They are still very much sticking to their old methods. It's worked out for them so far, but will it work going forward? That's the question.
 

Killjoy-NL

Member
PS will have to decide soon. Right now their margins are at 6%, and this is with mostly with that traditional mindset and strategy of exclusives/eco-system first. Let's be honest, 2 years late PC ports and PC Gaas are just Sony basically dipping its toe into a different strategy. They are still very much sticking to their old methods. It's worked out for them so far, but will it work going forward? That's the question.
That's why they are going to release more GaaS, to increase revenue.
 
It’s just common sense

On Xbox, you get all the third parties and MS exclusives

On PlayStation, you get all the third parties and Sony exclusives

If both are day and date on PC, you literally get everything by just buying a PC. You don’t need to pay for online multiplayer either.

It leaves both MS and Sony as the odd man out. And no doubt there will be console-like PC builds such as steam machines that gain more popularity. Both MS and Sony lose in this scenario, and Sony looses far more. Sony is writing their ecosystem away by releasing everything at the same time on PC
A business has to change and adapt. I think the majority will agree that the quality of Sony output is good, but it comes at a cost. Very high budgets, increased dev times, thin margins on hardware....all means the old business model (focus on hardware, exclusivity, eco-system etc) is financially not working out for them as it did in the past. Again, last quarter operating margins were 6%. That is simply not good. Hence why the management is now focused on improving margins. And improving margins may mean looking beyond their traditional business model.
 

laynelane

Member
A business has to change and adapt. I think the majority will agree that the quality of Sony output is good, but it comes at a cost. Very high budgets, increased dev times, thin margins on hardware....all means the old business model (focus on hardware, exclusivity, eco-system etc) is financially not working out for them as it did in the past. Again, last quarter operating margins were 6%. That is simply not good. Hence why the management is now focused on improving margins. And improving margins may mean looking beyond their traditional business model.

I think Sony has been adapting. Focusing on GAAS, porting to PC, increasing their sub offerings, etc. They've been moving beyond their version of the traditional console model for a few years now. In terms of improving their margins, laying the blame solely on the console model doesn't seem accurate either. It's hard to get an accurate picture without more data, but it's probable improvements could be made by reducing their costs in certain areas.
 
I think Sony has been adapting. Focusing on GAAS, porting to PC, increasing their sub offerings, etc. They've been moving beyond their version of the traditional console model for a few years now. In terms of improving their margins, laying the blame solely on the console model doesn't seem accurate either. It's hard to get an accurate picture without more data, but it's probable improvements could be made by reducing their costs in certain areas.
There is nothing inherently wrong with the "console model" per say, but it's contingent on the ability to shift hardware at reasonable margins (which is difficult at present due to costs) through a console cycle, and a consistent output of quality games at reasonable budgets. Sony, imo, is only hitting one of the those factors, which is the quality of whatever they do put out. So, they do need to do something. I agree they are taking the first steps out of the traditional model but I'm sure they are now running scenarios that analyse more ..let's say...drastic shifts in strategy.
 
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laynelane

Member
There is nothing inherently wrong with the "console model" per say, but it's contingent on the ability to shift hardware at reasonable margins (which is difficult at present due to costs) through a console cycle, and a consistent output of quality games at reasonable budgets. Sony, imo, is only hitting one of the those factors, which is the quality of whatever they do put out. So, they do need to do something. I agree they are taking the first steps out of the traditional model but I'm sure they are now running scenarios that analyse more ..let's say...drastic shifts in strategy.

I'm not so sure about that. They've already made drastic shifts in strategy and we're seeing now how that has worked out for them financially (these strategy shifts are not the only factor, of course, but should be considered). In terms of making predictions, imo, there's not enough information nor understanding of the overall picture to definitively state anything about what they may or may not do. I also wonder about VR and the Portal - have those been profitable? It seems like Sony has been trying to expand for a while now beyond solely console/games. The TV shows with their IP come to mind in this regard too.
 
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