NEWS

Sony Targets PlayStation Profitability By 2011

Tom Ivan's picture

By Tom Ivan

November 19, 2009

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Sony has targeted a return to profitability for its PlayStation business in the fiscal year ending March 2011.

The platform holder hopes to increase PlayStation revenues by expanding hardware and software sales and enriching PlayStation Network services. Improved profitability can be achieved through “cost reduction and other measures”, the firm said in a statement released following a media and investor conference today.

Sony also said it expects to release a series of 3D-related products for the home during its 2010 financial year, including the launch of 3D gaming on PS3. Presentation documents noted that “all PS3 units will be firmware upgradeable to 3D.”

Focusing on the PlayStation Network, page 20 of the presentation materials [pdf] also referenced the release of a “non-game software development kit” in the second quarter of FY2010, and the introduction of a “new revenue stream from subscription.” We’ve sent Sony an email regarding this unspecified PSN subscription service to see if we can get any further details.

sconti's picture

Does this mean they will charge the yearly fee like Xbox ?. Feels like we're all going to get shafted for some online action.

andyfour's picture

Read the links provided by Wall_E below... or pretty much any other website that has the full press release from Krazy Kaz. They're saying the online gaming component will remain free but they will "add" premium services to PSN.

grognard66's picture

Some of you are so naive. This was a contrived "leak" to start getting us used to the idea that we're going to have to pay to play online. They'll probably start by testing the waters with some premium content for a subscription, but when they find that's not going to generate enough revenue they will charge to play online - that's the only hook that will generate appreciable numbers.

Don't be surprised if the initial subscription service has the perk of being able to play online for the first 2-4 weeks following a new release, while free PSN members have to wait until after that time to play online (alternately, certain online game modes may only be unlocked for premium subscribers initially).

andyfour's picture

As I've said in the past, as long as the core online gaming remains free, it's all good, which according to every other game site is what they've said.
EDIT: As posted above.
Can't imagine what premium services they would offer though?
Maybe thats the delay behind X-game chat, they want to charge for it. -lol-
Maybe a video store subscription service or similar? That would be cool, their own version of netflix.

Top_Dollar's picture

As long as online gaming continues to be free on the platform, then i couldn't give a flying fuck.

Poffle's picture

Agreed. I am not prepared to pay for 2 yearly subscriptions. I just wonder what they are planning on charging for besides the movies etc.

StealthBadger's picture

So, what will they be offering a subscription to on PSN then? I guess they could charge a subscription to specific games, like FFXIV or The Agency (what happened to that game?), but the devs might well not be happy at Sony nicking a subscription fee to play their games?

I reckon they must be referring to a fee for PSN, tbh.

StealthBadger's picture

Looks like arron might've been wrong about sony never introducing a subscription fee for PSN? I can't think of anything else that'd require a subscription to use on PSN, so it presumably must refer to the service itself. *hopes to be proven wrong*

Wall_E's picture

Well, they're never going to give the movies, music, etc for free. I'm with Top on this one...as long as online gaming is free then it's a non issue.

EDIT:

The subs for premium content. Online gaming remains free.

http://www.vg247.com/2009/11/19/hirai-current-psn-service-to-remain-free...

StealthBadger's picture

Fair enough then, I stand corrected. I'm wondering what counts as premium content though, I imagine it will gradually grow to include pretty much everything...?

StealthBadger's picture

but they said the movies were going to be charged per rental/purchase? That's not the same as a subscription.

quietIdentity's picture

I think they intend it to be things like Qore, access to specific materials in online games possibly, exclusive stuff for home and other, possibly retarded things. It's a good idea though, extra revenue streams are totally needed for survival. If they say give gamers with a subscription a higher priority on their services (aka possibly less lag depending on server load) among those things it'll get the hardcore crowd in, and it will give them a revenue stream with which to fund increased development of their online functionality. I don't mind paying a small subscription fee, and I'm not exactly loaded, I mean. Live Gold here equates to around $1 a week. Not exactly daylight robbery yet it has given Microsoft a solid stream of income for years. I'll pay for both if it's worth it.