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CNBC — Can The Sony PlayStation Remain The Top-Selling Gaming Console?

The Sony PlayStation changed the gaming industry’s landscape when it was introduced to players 30 years ago. The PlayStation 2 went on to become best-selling console of all time, a title it still holds today. But the company has its fair share of challenges ahead with the ever-changing gaming sector. Just last year, Microsoft’s $69 billion acquisition of Activision Blizzard threatened the landscape of gaming exclusivity. And Sony faces some headwinds with lower demand and industry-wide layoffs. Sony has continually adapted and evolved over the span of the past three decades, but can it continue to hold strong in the console wars? CNBC spoke with Sony Interactive Entertainment CEO Jim Ryan, former SIE Worldwide Studios chairman Shawn Layden and other experts to find out.

Chapters:
0:00 Introduction
1:55 An early hit
6:08 Rough patch
8:15 Content is king
12:05 Looking ahead

 
Chapters:
0:00 Introduction
1:55 An early hit
6:08 Rough patch
8:15 Content is king
12:05 Looking ahead


They won in 1994 when they beat the pants out of the Saturn and the N64 was delayed by another year. By the time the N64 launched it was over. Sega launched Dreamcast and 98 and it died to the PS2 two years before the PS2 even launched as people were more interested in seeing what a second playstation could do than buying another company's next gen console. Then the PS2 launched and won the gen before the gamcube and Xbox were at the starting line.
 

HeWhoWalks

Gold Member
Nintendo pivoted and is doing fantastic as a result. They always bounce back and no longer have to take Sony head on.

Microsoft, on the other hand, buried themselves. PlayStation simply existed, which helped further that demise. And that sounds awfully familiar. At the same time, they [Microsoft] are pivoting too and that's why we'll continue to see their games on competing platforms.
 
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StereoVsn

Member
Did Sony actually beat Nintendo? It’s highly profitable, sold over 125mil Switches, sold whole bunch of software selling in 10s of millions copies and has like $11bil in convertible securities/cash.

Edit: God, iOS error correction is utter trash.
 
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reinking

Gold Member
OK, but is Nintendo or Microsoft the bottom?
sOMn3FewH_QqBEpI3druZCA_G5qC4ns38EmXJxWOU74.jpg
 

Cyberpunkd

Member
Did Sony actually beat Nintendo? It’s highly profitable, sold over 125mil Switches, sold whole bunch of software selling in 10s of millions copies and has like $11bil in convertible securities/cash.

Edit: God, iOS error correction is utter trash.
I tried looking into it and without checking financial statements it’s impossible - people do not understand the difference between revenue and net profit, so all numbers found online are thrash.
 

SHA

Member
Did Sony actually beat Nintendo? It’s highly profitable, sold over 125mil Switches, sold whole bunch of software selling in 10s of millions copies and has like $11bil in convertible securities/cash.

Edit: God, iOS error correction is utter trash.
Not in numbers, it's like he meant they did their part.
 

RickMasters

Member
.

Nintendo is probably currently in a more secure position imo than Sony due to their IP’s and their cost to market for games and probably hardware.


But for how long? Their core audience of children are rapidly moving over to tablets for gaming instead. They look comfy now, but I think they are gonna have a few challenges of their own in a few years. With that said….. I think they will be the last dedicated gaming hardware company. I’m just wondering how many more of these hardware ideas they have in them that will differentiate them from their competition in their usual target audiences eyes ( kids with ever shortening attention spans)
 

Edgelord79

Gold Member
But for how long? Their core audience of children are rapidly moving over to tablets for gaming instead. They look comfy now, but I think they are gonna have a few challenges of their own in a few years. With that said….. I think they will be the last dedicated gaming hardware company. I’m just wondering how many more of these hardware ideas they have in them that will differentiate them from their competition in their usual target audiences eyes ( kids with ever shortening attention spans)
Possibly don’t know. I thought this a while ago too then the Switch came out and there are 40 year olds playing Mario…. so I’m not so sure.

Nintendo seems to have a resiliency I wouldn’t bet against.
 

Romulus

Member
Nintendo pivoted and is doing fantastic as a result. They always bounce back and no longer have to take Sony head on.

They'll be fine, but Nintendo has relied on their gimmicks and first parties. If either of those are not exciting or innovative, their sales slump for 5 years. This happens fairly often.

Sony just needs to not build another PS3. Easy. I would argue PS5 exclusives are worse than all PlayStation consoles at this point in its life, or at least arguably close to dead last. But they're still killing it.
 
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SlimySnake

Flashless at the Golden Globes
Did Sony actually beat Nintendo? It’s highly profitable, sold over 125mil Switches, sold whole bunch of software selling in 10s of millions copies and has like $11bil in convertible securities/cash.

Edit: God, iOS error correction is utter trash.
Yes. They locked them out of the console business forever. 125 million compared to the 150 ds + 100 million wii is not winning.

They no longer get cod, ac, battlefield, and any of the big third party games Sony gets 30% royalties from. Re4, Star Wars, Alan wake, avatar, cod, and even hogwarts which came out on ps5, pc and xs and sold a billion worth of copies before it was hastily ported to switch for a fraction of the sales.

Nintendo has effectively conceded the console space but i would give the credit to both ms and Sony for that. Not just Sony.
 

RickMasters

Member
Sony beat Nintendo?

Come On Reaction GIF by MOODMAN



I think people look at their choice to not directly compete with Sony ( or Xbox for that matter) as their internal admission of defeat.


I can’t say I entirely disagree. They stepped out of the graphics arms race. The avoid putting out games that are in trend ( FPS for example) in favour of their family friendly IP. I can’t blame them for doubling down on their strengths. They are Nintendo. But perceptions have their way of sticking with people over time. I don’t think they lost anything. They made the right call and it’s enabled them to thrive.



And honestly I think when things are more sub driven they stand to do better than Sony or Xbox.
 
Did Sony actually beat Nintendo? It’s highly profitable, sold over 125mil Switches, sold whole bunch of software selling in 10s of millions copies and has like $11bil in convertible securities/cash.

Edit: God, iOS error correction is utter trash.
It's weird to say a company "beat" another company but would say Sony probably did if you view it as a competition, as least back in the 90s and early 2000s. Sony crushed it with PS1 and PS2 while 64 and GameCube bombed (even though those systems were great). It kinda forced Nintendo into a new route of being more aimed at a younger audience or family friendly games. Although one could argue that were on that route already before Sony joined in.
 

Pelta88

Member
CNBC will spin it like they’ve got the inside track.

Like the innovation with the hardware coupled with some must play IP isn’t the two essential ingredients.
 

RickMasters

Member
Yes. They locked them out of the console business forever. 125 million compared to the 150 ds + 100 million wii is not winning.

They no longer get cod, ac, battlefield, and any of the big third party games Sony gets 30% royalties from. Re4, Star Wars, Alan wake, avatar, cod, and even hogwarts which came out on ps5, pc and xs and sold a billion worth of copies before it was hastily ported to switch for a fraction of the sales.

Nintendo has effectively conceded the console space but i would give the credit to both ms and Sony for that. Not just Sony.


To be fair I think Nintendo would get a lot more of those games if they built more powerful hardware. They did it to themselves and ( maybe unrealistically) expect devs to show horn games meant for more power hardware into their console. Never really works outside of sales but I think they have just leaned to accept it. And still sell a tonne of hardware.
 

Killjoy-NL

Member
Yes. They locked them out of the console business forever. 125 million compared to the 150 ds + 100 million wii is not winning.

They no longer get cod, ac, battlefield, and any of the big third party games Sony gets 30% royalties from. Re4, Star Wars, Alan wake, avatar, cod, and even hogwarts which came out on ps5, pc and xs and sold a billion worth of copies before it was hastily ported to switch for a fraction of the sales.

Nintendo has effectively conceded the console space but i would give the credit to both ms and Sony for that. Not just Sony.
Xbox has been trashed by Playstation pretty much all the time, with the exception of X360, but that was because Sony messed up at the start of that gen.

Xbox has never been a threat to neither Playstation, nor Nintendo.
 
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Faust

Perpetually Tired
Staff Member
Last I remember, Nintendo is the company with zero debt, doesn’t have to release their games on other platforms, and still is able to sell their games for full price years after launch with no issues.

Sony and Nintendo are in direct competition and will continue to be doing so for years to come, as much as some here like to claim the opposite.
 
I disagree with PlayStation beating Nintendo. Nintendo is in a better gaming state imo.

Xbox… well…. ya that’s a whole other thing.

Nintendo is probably currently in a more secure position imo than Sony due to their IP’s and their cost to market for games and probably hardware.

It's going to be easier for Sony to pivot into Nintendo's market than Nintendo to pivot into Sony's market.

I fully expect Sony to release a handheld within the next 2-3 years and that handheld will position themselves to eat into a lot of the market share that Nintendo enjoys today.

Without putting out a system that can compete with parity (price and power) with the PS5, it's going to be very difficult for Nintendo to gain headway into that market.

Releasing a hybrid system that is about as powerful as the PS4 Pro isn't going to cut it.
 

RickMasters

Member
Possibly don’t know. I thought this a while ago too then the Switch came out and there are 40 year olds playing Mario…. so I’m not so sure.

Nintendo seems to have a resiliency I wouldn’t bet against.
I agree they do seem to always find a way. I think the whole mobile- hybrid bought them some time. But with tablets giving the switch a run for its money and giving kids all them other apps they like I lived Nintendo as a kid, but nowadays all the kids in my family are playing dieting on tablets…. Some even want steam decks as the next step up… no mentions of a console let alone building a PC for Bdays or xmas. They just don’t care about none of it. ….. these are the devices of their dads and uncles. I’m wondering… what with Nintendo being such a kid focused company….. how do they engage with post Gen alpha kids?

Xbox for all their faults sort of realise and anticipate some of where things are going…. Sony are slowly starting to smell the coffee. But Nintendo ? They will be the ones to find a way for their hardware to have a reason to control exist. Atleast for a while….
 
Playstation's operating margin is in the toilet compared to Nintendo :lollipop_confused:

This is kind of short-sighted thinking.

Their revenues are higher. There is a lot that Sony can do to drastically improve their margins over time.

  • Fewer exclusive deals now that they don't need to compete with Xbox
    • That money can instead be utilized in other ways
  • Fewer and Less expensive 1st party titles
    • Releasing those 1st party titles on PC
    • Creating a PC Storefront to sell their own titles and 3rd party titles
  • Releasing a handheld system to expand software sales
  • Continuing to use their transmedia apparatus to enhance the reach of their IP
    • You look at something like Pokemon and it wouldn't be nearly the phenomenon as it is today without the animated series.
 

Crm114

Member
Xbox had their window of opportunity but got greedy and messed it up. Even though Sony sold a few more consoles at the very end, microsoft won the 360/ps3 generation. Unfortunately all the good will they built was gone almost immediately with the Xbone.

At least they’ve provided a case study to companies on how to completely shit the bed and give up huge swaths of market share.
 

IFireflyl

Gold Member
OK, but is Nintendo or Microsoft the bottom?

It's hard for Microsoft to be the bottom when they aren't even in the same house, let alone the same room.

schitts creek oh snap GIF by CBC


On topic, Sony didn't beat Nintendo or Microsoft. Their business model appears to have been more successful than Microsoft's considering their much higher player base, but that is hardly a reason to say that Sony beat Microsoft. I would argue that Microsoft was its own worst enemy, and that their failings shouldn't be spun out to be Sony's victories.

Also, as others have mentioned, Sony didn't "beat Nintendo" at all. Nintendo is doing real well.
 
I agree they do seem to always find a way. I think the whole mobile- hybrid bought them some time. But with tablets giving the switch a run for its money and giving kids all them other apps they like I lived Nintendo as a kid, but nowadays all the kids in my family are playing dieting on tablets…. Some even want steam decks as the next step up… no mentions of a console let alone building a PC for Bdays or xmas. They just don’t care about none of it. ….. these are the devices of their dads and uncles. I’m wondering… what with Nintendo being such a kid focused company….. how do they engage with post Gen alpha kids?

Xbox for all their faults sort of realise and anticipate some of where things are going…. Sony are slowly starting to smell the coffee. But Nintendo ? They will be the ones to find a way for their hardware to have a reason to control exist. Atleast for a while….

I think we shouldn't try to forecast too much based off on fads or trends.

I was very much into PC gaming in 1997. Ultimately, I still found my way into consoles, because that's where the games I wanted to play were and how I wanted to play.

There are a lot of genres that just don't work as well on PC as well.

I think it is incumbent upon consoles to really re-focus on their own strengths. Consoles have mirrored PC for the last couple generations, but it doesn't mean that they have to.

You can do whatever you want with a console, PC doesn't have the same freedom in design language. You were never going to get a Wii style gaming on PC.

I think consoles will struggle to keep up with PCs if they just remain PCs, but we don't know the form factor going forward. You could have a console with a dedicated RTX chip or a dedicated AI chip. That's really difficult to replicate on PC at scale. Show me a Steamdeck or windows handheld the size of the Switch Lite.

Dedicated hardware features are how consoles need to differentiate themselves in the future.
 

Topher

Gold Member
I think people look at their choice to not directly compete with Sony ( or Xbox for that matter) as their internal admission of defeat.


I can’t say I entirely disagree. They stepped out of the graphics arms race. The avoid putting out games that are in trend ( FPS for example) in favour of their family friendly IP. I can’t blame them for doubling down on their strengths. They are Nintendo. But perceptions have their way of sticking with people over time. I don’t think they lost anything. They made the right call and it’s enabled them to thrive.



And honestly I think when things are more sub driven they stand to do better than Sony or Xbox.

Nah man. The first thing Sony fans (myself included) point to above all else when proclaiming victory in the console war is console sales. Nintendo Switch hasn't been defeated by anything in that regard. Damn sure can't turn this into a teraflops fight when it suits us.
 
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