Video Game Market Analysis Thread

[Vivir]

@pg2g

Reading that they manufactured 6.5M PS5 in Q2, wonder why they would hold back. Would be the hot Xmas gift either way.

Think they plan to fill the shelves this holiday with it.

[TheBrightestSun]

@pg2g

Reading that they manufactured 6.5M PS5 in Q2, wonder why they would hold back. Would be the hot Xmas gift either way.

Holiday, GoW bundles, COD bundles etc.

[Elderick]

@CallMeCraig

Playstation profit margins are melting away. No wonder Jim Ryan is this nervous.

that’s because Sony/PS has been investing aggressively into the gaming divisions: acquisitions (Bungie and Haven) and their operating costs, games with even bigger budgets, more partnerships, more publishing agreements, PS+ revamp content acquisition, new studios (Malaysia and VASG), organic growth (SSM’s 2nd team, ND’s 3rd team), etc.

All of that leads to higher operating expenses, but that’s good news for PS gamers. They are still making a profit, and they are increasing revenue QoQ. But they are reinvesting most of it – while staying in green – to bring more Acquisitions more moneyhats, more, and bigger games.

[Boosted_Gear]

@Elderick

that’s because Sony/PS has been investing aggressively into the gaming divisions: acquisitions (Bungie and Haven) and their operating costs, games with even bigger budgets, more partnerships, more publishing agreements, PS+ revamp content acquisition, new studios (Malaysia and VASG), organic growth (SSM’s 2nd team, ND’s 3rd team), etc.

All of that leads to higher operating expenses, but that’s good news for PS gamers. They are still making a profit, and they are increasing revenue QoQ. But they are reinvesting most of it – while staying in green – to bring more Acquisitions more moneyhats, more, and bigger games.

[Sparda3g]

They didn’t announce anything on PS+ like the amount of subscriber subscribe this or that right?

[Daniel]

@Sparda3g

They didn’t announce anything on PS+ like the amount of subscriber subscribe this or that right?

They did, they have 45M subs but it dropped from 47M I think. The subs dropped but revenue was higher most likely due to the higher priced new PS+ plans. Will be interesting to see how the headlines are will they go with PS+ has lost subscribers or will they pick the increased revenue. If we follow what they do with Game Pass it would the be sub number going down.

They gave numbers for GoW 2018 but still haven’t given updated numbers for Horizon FW even after bundle deals so I wonder what’s going on there.

[Sparda3g]

@Daniel

They did, they have 45M subs but it dropped from 47M I think. The subs dropped but revenue was higher most likely due to the higher priced new PS+ plans. Will be interesting to see how the headlines are will they go with PS+ has lost subscribers or will they pick the increased revenue. If we follow what they do with Game Pass it would the be sub number going down.

They gave numbers for GoW 2018 but still haven’t given updated numbers for Horizon FW even after bundle deals so I wonder what’s going on there.

What I mean is how many subscribed to Premium; basically a breakdown. The fact they lost subscribers isn’t good despite the growth on revenue. That good news is a short term one if your subscriber count continue to drop. It’s probably why they went hard on free games offering, even though they failed to put out good content for Premium subscribers.

[Vivir]

Dom

$70 games and it being higher in other regions probably helps alot but still mightily impressive.

[Daniel]

@Sparda3g

What I mean is how many subscribed to Premium; basically a breakdown. The fact they lost subscribers isn’t good despite the growth on revenue. That good news is a short term one if your subscriber count continue to drop. It’s probably why they went hard on free games offering, even though they failed to put out good content for Premium subscribers.

Oh my bad, not that I can see. It is good the revenue went up due to the higher plans but it is bad to lose customers because it is hard to get them on board, it is harder to keep them subbed.

[Sparda3g]

@Vivir

Jim is having a nightmare to see that with revenue going straight to Microsoft. Bet he’s going to get ready for 500 pages on why Sony will die forever if Microsoft buys ABK.

[Daniel]

@Vivir

Hot damn, I agree with him I expected it to be big but not that big. I’m enjoying it a lot and it’s good to play cod again after a long hiatus, funny enough MW2019 was the last cod I played and stopped after a year.

[BRiT]

@CallMeCraig

Playstation profit margins are melting away. No wonder Jim Ryan is this nervous.

I see they changed the headlines already. Its no longer about gaming profits tumbles but “Sony hikes FY profit forecast by 4.5% on foreign exchange boost”.

[Sparda3g]

@BRiT

I see they changed the headlines already. Its no longer about gaming profits tumbles but “Sony hikes FY profit forecast by 4.5% on foreign exchange boost”.

Remind me of wrestling ratings headline, ignoring the actual bad news and highlight the barely good news. Granted, the forecast is good news, but it should include the bad as well.

[TheBrightestSun]

@BRiT

I see they changed the headlines already. Its no longer about gaming profits tumbles but “Sony hikes FY profit forecast by 4.5% on foreign exchange boost”.

Media: we need to protect Playstation headlines

[TheBrightestSun]

I wonder what articles we would haven seen if Microsoft said that Game Pass lost subscribers because people went outside

[CallMeCraig]

@Elderick

that’s because Sony/PS has been investing aggressively into the gaming divisions: acquisitions (Bungie and Haven) and their operating costs, games with even bigger budgets, more partnerships, more publishing agreements, PS+ revamp content acquisition, new studios (Malaysia and VASG), organic growth (SSM’s 2nd team, ND’s 3rd team), etc.

All of that leads to higher operating expenses, but that’s good news for PS gamers. They are still making a profit, and they are increasing revenue QoQ. But they are reinvesting most of it – while staying in green – to bring more Acquisitions more moneyhats, more, and bigger games.

Having razor thin profit margins in a worldwide recession is not a good sign. What if one of their next AAA projects underperforms or they miss their projections for hardware or software sales? What if Yen to Dollar exchange rate works even more against them? Then they are in the red suddenly. And we are talking about some record hardware sales. Why is Sony unable to capitalize on that?

[BRiT]

Well the media is now in the echo-chamber mode about a general throwaway line from Phil. It was said in the WSJ Interview how the console industry uses a loss-leader approach, where consoles are sold for a loss and make up for it through game sales and services, to justify why console stores have the 30% transaction cut. I’m not sure why this time around its getting attention because they have said that previously and it was further revealed in the Epic vs Apple lawsuit. Expect to see more articles about “losing $100 to $200” per console.

Phil Spencer - WSJ Full Interview October 2022

[saintsflow20]

Weekly Famitsu Sales

Software Sales (physical only)

1. [NSW] Splatoon 3 – 51,547 / 3,235,701
2. [NSW] Bayonetta 3 – 41,285 / NEW
3. [PS4] Star Ocean: The Divine Force – 27,001 / NEW

4. [PS4] Call of Duty: Modern Warfare II – 24,371 / NEW

5. [NSW] Ace Angler: Fishing Spirits – 24,371 / NEW

6. [PS5] Call of Duty: Modern Warfare II – 17,710 / NEW

7. [PS5] Star Ocean: The Divine Force – 17,177 / NEW
8. [NSW] Aquarium – 13,199 / NEW
9. [NSW] Persona 5 Royal – 12,040 / 58,038
10. [NSW] Needy Streamer Overload – 11,693 / NEW

Hardware Sales

PlayStation 5 – 38.866 (2.067.279)

Switch – 38.634 (26.562.178)

Xbox Series X|S – 3.674 (375.671)

3DS – 56 (24.596.902)

PlayStation 4 – 11 (9.395.605)**

Interesting week this time! PS5… has taken the #1 slot for hardware this time ! (even if only by a few hundred lol), CoD sales open to fairly mediocre numbers. Like I said in my post here:

Xbox Acquisition |OT6| If this is about competition, let us have competition

I don’t blame you. Most Western gaming journalists still push out that “Konami stopped making games” rhetoric. Really, a lot of Western gaming influencers do not follow the JP market. First week sales [PS4] Call of Duty: Vanguard (SIE, 11/05/21) – 28,321 [PS5] Call of Duty: Vanguard (SIE, 11/05/21) – 12,754 Quite weak lately, I know Vanguard was down worldwide but in Japan I don’t expect MW2 to recover CoD that much. These are basically niche JRPG sales First week sales [PS4] Atelier Sop…

I never expected MW2 to “recover” in Japan the same way it’s done in Western regions. For shooters Japan is all about Splatoon and Apex Legends lol.

Finally on a personal note I’m happy to see “Needy Streamer Overload” in the Top 10, very unique indie game that launched on Steam last year and just came to Switch.

[TheBrightestSun]

Sizeable amount of consoles from Sony sent was

[Sparda3g]

All the more reason for Sony to cry for CoD being taken away, even if it’s not. Still, sharing with the enemy is one they don’t want.