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Kaz Hirai: "PS4 hardware is already profitable"

Rebel Leader

THE POWER OF BUTTERSCOTCH BOTTOMS
well if it's night time and you have no candles... you're going to need electricity to play chess.. oh and chess timers use electricity.. DAFT boy

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Two Words

Member
but why go on the internet if you need to always have it on? Don't like it? Don't buy it.. have problems discussing topics? Don't post..

I don't like it, and I wouldn't buy it. I don't have a problem discussing it,. Is this enough trolling to report to a mod? Not sure if I can't do it since I'm still a junior.
 

Curufinwe

Member
I have Time Warner Cable, so no, my fucking internet isn't "ALWAYS ON". The fucking things cuts in and out constantly.

MS are lucky the gaming public rejected their always online DRM immediately giving them time to do a 180 before launch. If it had gone ahead and people started getting kicked out of single player games when their internet flaked out Sony would have totally killed them in sales, instead of just comfortably beating them.
 

ReBurn

Gold Member
I have Time Warner Cable, so no, my fucking internet isn't "ALWAYS ON". The fucking things cuts in and out constantly.

I've had Time Warner Cable for Internet for more than 15 years and I experience maybe one outage per year. I must really be an anomaly.
 
This will never happen (probably), but imagine the insanity that would ensue if Sony dropped the price of the PS4 to $299.99 and introduced a new PS4 SKU at $399.99 that bundled in the new Vita Slim at E3.
 

Tommy DJ

Member
Its amazing the lack of empathy Forgottonone has. "It doesn't impact me so deal with it!" the poster says. Guess what, it still does because its a stupid restriction that doesn't even need to exist.
 

Mohonky

Member
I laughed at the idea so many people got really excited that a corportion is turning over profit, like they are actually a part of that company or something.
 

Salaadin

Member
I laughed at the idea so many people got really excited that a corportion is turning over profit, like they are actually a part of that company or something.
Huh?

If a company makes a product that you enjoy, why wouldn't you be happy that they're turning a profit from said product?
 

Mohonky

Member
Huh?

If a company makes a product that you enjoy, why wouldn't you be happy that they're turning a profit from said product?
.....because I am not emotionally invested in the company itself, just the experience their product affords me.

Unless I am a shareholder, then I might give a shit.
 

Renekton

Member
I laughed at the idea so many people got really excited that a corportion is turning over profit, like they are actually a part of that company or something.
Basically Sony group is on the verge of bankruptcy. Sony and Nintendo going down means MS monopolizes the console space.

So it's enlightened self-interest to cheer them on.
 
to go onto the internet.... you NEED internet ALWAYS on... did I just mess with you?

still can't read my posts properly i see... TO GO ONTO THE INTERNET YOU NEED INTERNET ALWAYS ON.. so right now YOUR INTERNET IS ""ALWAYS ON"" ARE YOU FUCKING SCARED NOW?

well if it's night time and you have no candles... you're going to need electricity to play chess.. oh and chess timers use electricity.. DAFT boy

but why go on the internet if you need to always have it on? Don't like it? Don't buy it.. have problems discussing topics? Don't post..

C'mon son
 

killatopak

Member
lol people say I am name calling but I get called a douche bag? I was not personally attacking anyone sorry if it came that way. I am speaking about the general gaming public after microsofts reveal there is no way I can say which user on here thinks that way. There is no point to personally attack any of you because I have no idea what goes on in your heads.. but I can speak for the general reaction to microsofts kinect.. And it was bad so I am speaking for the group as a whole. I am not here to personally attack anyone.

Sorry if you were offended. I'm not calling you a douchebag here, I just wrote it that way because that's how I originally read it from another poster.

You can just replace 'douchbag' with 'wrong' for example.

Anyway, sure the original Xbox policies could have been the future but it was the future that the consumers don't want. Either it's because the consumers weren't ready yet or because they just don't want to be forced in a policy that disadvantages them, I don't know. The only fact here is that when MS' 180'd their policies, people seemed to have calmed down a bit and began to think of buying the Xbox One again objectively.
 

ColiBreh1

Banned
Dualshockers just released this article half an hour ago:

Sony’s Kaz Hirai Details the Future Strategy for PS4 and PlayStation: Promises Mindset Changes and Investment

by Giuseppe Nelva 5/24/14

Sony recently held its corporate strategy meeting in Tokyo, explaining the future moves planned by the publisher to exploit the PlayStation brand and make it as profitable as possible. The company’s CEO Kaz Hirai talked at length about PlayStation 4, PlayStation Plus, PlayStation Now and more.

One of the most interesting points was made during the Q&A Session, as Hirai-san explained that the PSN and PlayStation Plus are going to “grow hugely,” so this year is the right time to invest in building up their infrastructure:

For PlayStation Plus and the PlayStation Network Business in General, but also the video and music businesses and the networking in those areas, the market there is going to grow hugely, but at the same time as we see the growth of the business, we have to be prepared with a solid enough network infrastructure. We have to be able to accommodate the increase in subscribers by having a solid enough network system and infrastructure and therefore we believe that now is the time of investment, so that when we see a growth in subscribers we can still maintain the network business, so this year is the time when we have to invest in infrastructure building.

Hirai-san also mentioned that Sony needs to change its mindset on the business models related to PlayStation in order to offer new experiences:

New Experiences for the user is what we’re always aware of. [...] We’re saying that TV is going to be a totally different TV, and a different dimension. SCE is selling consoles now, but with PlayStation we need to rapidly change that business position, so we need to really transform that mindset. That’s what I tell people and what I tell myself. To change my mindset totally.

It’s worth mentioning that the original speech in Japanese talked about selling consoles and having to buy disks, but the second part was omitted by the English simultaneous translation.

During the opening speech Hirai-san explained the future PlayStation strategy in great detail, even if the numbers provided are the same we already heard in previous releases. Still, he made quite a few relevant points, that you can read in the full transcript below:

This fiscal year we are set to consolidate our leading position in the home console market by further expanding PS4 sales around the world. Following its introduction in North America in November 2013, in 5 months, PS4 has launched in 72 countries and regions achieving cumulative sell-through of 7 million units as of April 6. It’s been a hugely successful launch, but the key to the long term success of the platform lies in how solidly we can continue to grow the installed base. In terms of game titles for PS4, as of April 13, 47 titles had been launched with a total of 20.5 million units being sold via retailers and over the network on the PlayStation Store.

By extracting the best creativity from all of our partners in the game development community, PS4 has dramatically expanded the possibilities of game play. But at the same time, PS4 is also designed to provide the kinds of social experiences via the network that offer users a richer gaming experience than ever before. PS4’s remote play function also allows users to easily enjoy the PS4 experience on their PlayStation Vita, expanding the PS4 gaming experience beyond your living room, and making it available anytime, anywhere. From a profitability perspective, PS4 is also already contributing profit on a hardware unit basis, establishing a very different business framework from that of previous platform businesses.

The network functions that are possible with PS4 continue to evolve by the day.

Approximately half of PS4 users are registered to the PlayStation Plus subscription service, while the number of active users on the PlayStation Network and Sony Entertainment Network exceeds 52 million worldwide. Many of our users now enjoy an array of game, music and video content via the network. And our PlayStation App for smartphones and tablets that lets players share their PS4 experience to their mobile devices, is also proving hugely popular, with the total number of downloads already exceeding 4.5 million. Sales from our network business including game, music and video services exceeded 200 billion yen in fiscal 2013, and we intend to further expand that figure going forward.

When I was telling you about our entertainment business earlier, I said that the shift in digital content delivery from downloads to streaming is only going to accelerate. In the case of game content, the data format is completely different from movies and other video content, so there needed to be a technological revolution before we could switch from distributing game content via downloads to streaming. But starting this summer, we will begin distributing PS3 games via streaming to our users in the U.S. on an open beta version of our new PlayStation Now streaming service, first for PS4 and then PS Vita. And that’s just the first step. Going forward, we will use streaming to deliver the PlayStation experience worldwide. We also plan to make PlayStation Now compatible with new “BRAVIA” LCD TVs to be launched in the U.S. market this year. And in the future, we intend to extend its availability to a wide range of networked devices.

So, as you can see, in the Game and Network business we are set to secure even greater sources of profit by further expanding our content, software and network services on the firm foundation of a platform business that continues to generate stable profit itself, and offer our customers even more new and exciting entertainment experiences. This year marks the 20th anniversary of PlayStation. The PS2 platform was the biggest success until now in terms of profit, but I believe that PS4’s hardware, software and services have the potential to combine and develop into a platform capable of generating even greater profit.
We’ll have to see if Sony will manage to turn its game business into a fully profitable self-sufficient entity, but I can’t help hoping that they won’t change their mindset from selling consoles and disc-based games too radically. PlayStation Now has potential and it’s a great accessory to the PlayStation brand, but I personally can’t see it becomeing the “main” PlayStation business, at least not for a long time.

It’s also interesting to see that Hirai-san intends to invest in strengthening the network infrastructure despite the company’s financial losses. If anyone had any doubt on Sony’s ability to expand and invest, this should tell them that the Japanese giant is more solid than some would like us to believe.
 

Toparaman

Banned
what the fuck is going on in here. Isn't this a thread about the PS4 hardware being profitable now?

I dunno, but I'm scared.

.....because I am not emotionally invested in the company itself, just the experience their product affords me.

Unless I am a shareholder, then I might give a shit.

Okay, but if you really like their product, don't you want them to do well so they can keep making good things? Also, don't you want the employees who worked on the product to be rewarded for their good work?
 
The Bill Gates quote about being willing to sell off Xbox and Bing, actually came from a Fox Business 1 hour interview with directed audience questions. One of the questions was directly "Would you approve of Xbox and Bill sell off if Satya Nadella wanted it. Bill Gates first defended Xbox and Bing as vital, but also said that he would support Nadella's choices. Which is good because they just named him CEO and saying "No we don't support Nadella on that" would be a baaaaad start to a new CEO's term.

Interview is here:
http://www.foxbusiness.com/markets/2014/05/05/buffett-leery-social-media-stocks-ipos/

The source of all the Elop selling Xbox details, actually came from a Bloomberg article, which Microsoft responded, quoted in the same article via Frank Shaw, saying, "“We appreciate Bloomberg’s foray into fiction and look forward to future episodes."

Here is the article in question:
http://www.bloomberg.com/news/2013-...andidate-elop-said-to-mull-windows-shift.html

This is the single source for all Xbox sales rumours surrounding Elop. The single one. Investor calls from outside of the company to sell are nothing new, they've been calling the sale of everything that isn't windows and office for decades. Not only that, the article is vague on it sources, and calls them, "the people". Look at the copy:

"Stephen Elop, a candidate to replace Steve Ballmer as Microsoft Corp.’s chief executive officer, would consider breaking with decades of tradition by focusing the company’s strategy around making the popular Office software programs like Word, Excel and PowerPoint available on a broad variety of smartphones and tablets, including those made by Apple Inc. and Google Inc., said three people with knowledge of his thinking."

"He would consider ending Microsoft’s costly effort to take on Google with its Bing search engine, and would also consider selling healthy businesses such as the Xbox game console if he determined they weren’t critical to the company’s strategy, the people said."

The article doesn't quote any sources other than "People will knowledge of his thinking". Elop never said it publicly, no other article surfaced, with sources, based on this info. However, almost all Elop related calls to sell Xbox came from this article, or articles quoting this article.. or articles quoting those articles.. and so on. The unsupported rumour, based on heresay without sources, became a source, became fact. And now everyone thinks MS was considering to sell Xbox.

Hope that clears that up. :)

That's a good rebuttal for any supposed evidence of Microsoft's intention to dump Xbox, but it doesn't negate the fact that Microsoft lumps all Xbox revenue into the same division as its absurdly lucrative android patents, so it's virtually impossible to know if Xbox has ever made MS money. There has been speculation that Microsoft does this intentionally because Xbox has been a money pit and they want to avoid the ire of shareholders.
 

Kayant

Member
That's a good rebuttal for any supposed evidence of Microsoft's intention to dump Xbox, but it doesn't negate the fact that Microsoft lumps all Xbox revenue into the same division as its absurdly lucrative android patents, so it's virtually impossible to know if Xbox has ever made MS money. There has been speculation that Microsoft does this intentionally because Xbox has been a money pit and they want to avoid the ire of shareholders.

"Bill Gates first defended Xbox and Bing as vital" - This part isn't really true because if you watch the video you will get a sense as to how he feels about both as an integrated part of MS. He completely defends Bing and says it's an useful tool that can be used in other MS products and doesn't see it going away. With Xbox he only talks about it when he is questioned further by the interviewer and then goes on to talk about PC graphics and how they are bringing Xbox and PC closer(DX12) but how the Xbox division is handled will be up to Satya Nadella however, he will fully support a spin off of the Xbox division if Satya Nadella chooses.

TLDR - Bill thinks Bing should stay and made a strong case for it, Xbox is in full support of spinning if Satya Nadella decides and didn't make much of a case for.

Sorry for Off topic.


OT - Good to hear they are already profitable on just hardware.

With the move of playstation becoming more service based and Kaz believing in that motive going forward. How do you think they will handle PS5? Streaming box? There is also VR to think about because the whole industry is making a push for that and it might actually become the next big thing and more powerful hardware will benefit from that but will be impossible with streaming? due to things like latency and such. So how would they handle it because dedicated hardware then become less desirable if internet infrastructure catches up and ISP's often better plans (In places like US/Canada) then people could get access to a good to great gaming experience from almost anywhere.
 

cornerman

Member
.....because I am not emotionally invested in the company itself, just the experience their product affords me.

Unless I am a shareholder, then I might give a shit.

I think context is important here. What degree of emotional investment? Is it healthy or is it unhealthy.

From a macro view, looking at the industry and having an understanding of how all the gears work, I think its understandable how someone could be 'happy' that a console is profitable. We all enjoy this hobby and that in itself requires some investment. If you like a game or product the basic equation of that product requires that it have some sort of financial success. It suggests that you'll see continued support and the proliferation of that product and the experiences it provides. While its simple to look at Sony as some big monolithic company, it is composed of smaller entities...entities consisting of people. People who are performing their job for pay; but also impart some degree of art and self into their project/vision. And while I would hazard to guess that most people aren't necessarily thinking about the people-side of things when they say they're 'happy'; they are talking about continuation or fulfillment of that project/vision being realized.

A lot of people bemoan the popularity of first person shooters or even the first person perspective in AAA game development today. Those genres or perspectives have become commonplace because they have been viewed to be more likely financially successful. Business seek to repeat successes...and expand on them. There is clear evidence in the game space...games or products fail to garner attention and sales and those games/genres/ideas often times get abandoned. You've lost the experience you received 'happiness' from. Its all connected. But I assume you know that. I assume you're talking about ridiculous emotional attachments that result in 'fanboyism'...which is explainable, but is really unhealthy.
 
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