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Sony: Playstation Network Is Unprofitable

does free online gaming in the PlayStation world end with the PlayStation 4?

I expect it to. Shareholders will not have their competitors selling more units AND making billions off a paid online solution.
 

Len Dontree

Animator. Respect knuckles.
H_Prestige said:
That and paying for matchmaking (that's all you gold members have ever been paying for no matter how you spin it) are the two things that I wish MS would change about the Xbox. Why can't they just use real money for all downloadable content? They already do it with games on demand. Points system just means I might have to pay more than the thing I'm trying to buy is worth.

The opposite is actually true. For instance, I just bought a 1/2 price Alan Wake DLC episode with free points I got from a Bing promo (or perhaps a discounted points card from Amazon, it's all a big pool of free and discounted points in my account at this point).

Anyhoo, Sony have a long way to go to reach parity with Xbox Live, and they've been playing catch-up in that regard this whole gen. They launched without a clear vision and have been piecemealing features in willy-nilly. Shoehorning in Trophies, less exclusives on PSN and lack of mandatory demos, a general confusion about what games have what community features included, and weird and irrelevant (to me) efforts like "The Tester" and, to a lesser extent, Home; all don't mean it's a poor service to me, but it's the lesser of the two, gets much less of my playtime, and wouldn't be worth charging for anyway. Many will disagree, which is fine of course, but to say Live users are getting "raped" (a word thrown around way too casually in gaming circles) or should be livid because all they pay for is P2P is just dumb.

Then again, I think paying $15 a month to play an MMO, for instance, is odd, so to each his own is my motto. Happy Holidays!
 
I wonder how the expenses are allocated. That's what we don't know.

I wonder what their annual costs are in comparison to their annual revenue. I'm guessing that Kaz is speaking from the perspective of initial expenses + annual expenses is greater than the overall profit from the service?
 
MikeE21286 said:
I wonder how the expenses are allocated. That's what we don't know.

I wonder what their annual costs are in comparison to their annual revenue. I'm guessing that Kaz is speaking from the perspective of initial expenses + annual expenses is greater than the overall profit from the service?
shouldn't most of that be broken down in their quarterly earnings reports?
 

FLEABttn

Banned
flyinpiranha said:
And when did that happen? PSN is free. PC is free. XBLive is (surprise) still a pay service since 2002.

2002, when instead of outright rejecting an overpriced service, they ate it up.

8 years ago, people could have squashed this.
 

lantus

Member
I don't think practically forcing people to pay for an online service is necessary for Sony, they've made tremendous strides since they've launched PSN. I think the way they've poised PlayStation Plus is a great way to bring in profits, if they just keep expanding on it, along with the PlayStation Network as a whole, the entire thing could be a big cash cow in no time.
 

Gen X

Trust no one. Eat steaks.
tzare said:
If i am playing SSFIV and see a incoming PM, i check it, it is an invite to play XXX? i put the game, go to network menu, check invites and that's it, i jump to the lobby. they have almost done that step THIS gen. They screwed up not being able to deliver from start, and now they are lagging until next gen. Adding all those features found in XBL would probably create issues with old games.

When your highly anticipated $60million console exclusive driving simulator released in Nov 2010 doesn't even have the basic features mentioned in your post then there is something wrong somewhere in the system.
 
FLEABttn said:
2002, when instead of outright rejecting an overpriced service, they ate it up.

8 years ago, people could have squashed this.

Dude totally. Because everybody playing online is paying for it. Are you telling me Microsoft has such a hold on the online market they can change the ENTIRE online gaming structure?

I never knew that ... go MS I guess, way to pioneer the whole "charging for what people want" mentality in business.
 
Teetris said:
Goddamn, it boggles my mind about how consumers can defend this pay2play online stuff. Seriously :/

i worry about this net neutrality bullshit too...what if all of a sudden your service provider says, "AYE! all that zune/psn video downloading and online game paying shit is costing us too much bandwidth. time to pay extra for that shit.' that sort of 'network discrimination' is what is at stake at the moment with all that nonsense.

that's what really worries me. i think everyone should just get used to paying for psn tho. sony no doubt wants them some of that xbl money.
 

FLEABttn

Banned
flyinpiranha said:
Dude totally. Because everybody playing online is paying for it. Are you telling me Microsoft has such a hold on the online market they can change the ENTIRE online gaming structure?

I never knew that ... go MS I guess, way to pioneer the whole "charging for what people want" mentality in business.

More and more people are paying to play online each year. We're in a thread about how PSN might serious go pay to play. There is an impact. It's not even that MS has such a hold on the online gaming structure that does it, it's that Sony and Nintendo's shareholders will be clamoring for it, because of how successful it was on Xbox and 360. If people rejected a pay to play structure, these companies would have to find other sources of revenue, but because people are so willing to pay for it, it will turn heads.

Hell, the whole DLC crap started with horse armor. Look where it is now.
 

HK-47

Oh, bitch bitch bitch.
jdmonmou said:
Xbox live was my first exposure to online gaming, so I am just used to paying for the service. Even though microsoft increased the price of live it is still relatively cheap ($60 for a 12 month gold subscription is not that bad). Even though you get online play for free on the PC, you're still not saving that much money compared to someone who pays for xbox live. You probably have invested thousands of dollars in your PC that is probably now outdated. And on top of that most a lot of pc games released are ridden with glitches and some aren't even getting any DLC. So paying to play online is not that ridiculous.

My mind cant comprehend the ignorance.
 

Ashes

Banned
Is it unprofitable, as in it's making a loss, or is it unprofitable in that it is not hitting the profit ceilings that Sony wants.
I mean doubling year over year, and making 36 billion yen, You'd think that it would be self sustaining or atleast a little bit profitable.

Google tells me that's 280 million pounds, or 434 million dollors; spin that about to suggest nearly £300 million pounds and nearly half a bllion dollors. Does it really cost that much to keep the service running?

Another question: Do we have figures for psn versus ps3 retail per fiscal year? I know that would be hard to find, I guess.
 

GaimeGuy

Volunteer Deputy Campaign Director, Obama for America '16
the only platform in the last 15 years to have pay to play, peer to peer online gaming is the Xbox. That shit disappeared from everywhere else back in the late 80s/early 90s.

If this pay to play shit spreads to the other console platforms, I will curbstomp every person who ever paid for xbox live and contributed to this bullshit.
 
FLEABttn said:
More and more people are paying to play online each year. We're in a thread about how PSN might serious go pay to play. There is an impact. It's not even that MS has such a hold on the online gaming structure that does it, it's that Sony and Nintendo's shareholders will be clamoring for it, because of how successful it was on Xbox and 360. If people rejected a pay to play structure, these companies would have to find other sources of revenue, but because people are so willing to pay for it, it will turn heads.

Hell, the whole DLC crap started with horse armor. Look where it is now.

But that is an absolutely ridiculous standpoint to take. "if we wouldn't have paid, we wouldn't have to now"

Eventually somebody will put a price on what you enjoy. I see what you're saying, but it's not because MS charged for Live, it's because there was a price to be charged and people paid for it ... MS was just lucky enough to be there at the beginning.


GaimeGuy said:
the only platform in the last 15 years to have pay to play, peer to peer online gaming is the Xbox. That shit disappeared from everywhere else back in the late 80s/early 90s.

If this pay to play shit spreads to the other console platforms, I will curbstomp every person who ever paid for xbox live and contributed to this bullshit.

I pay every single fucking year. And I have a gaming PC and a PS3. I find Live worth it. I'm sorry you don't like the way I spend my money but you can take your "curbstomp" bullshit and fuck off.
 

FLEABttn

Banned
flyinpiranha said:
But that is an absolutely ridiculous standpoint to take. "if we wouldn't have paid, we wouldn't have to now"

GFWL dropping the pay to pay structure was entirely based on people refusing to pay. There's nothing ridiculous about the statement.

it's because there was a price to be charged and people paid for it.

Which, if people didn't pay for it, wouldn't have continued on particularly long.
 

Slayer-33

Liverpool-2
GaimeGuy said:
the only platform in the last 15 years to have pay to play, peer to peer online gaming is the Xbox. That shit disappeared from everywhere else back in the late 80s/early 90s.

If this pay to play shit spreads to the other console platforms, I will curbstomp every person who ever paid for xbox live and contributed to this bullshit.
Holy shit rage.

Ever stop for a second and thought that we love live becuase it's a GOOD service WORTH paying for on a console?

People can't seem to comprehend that simple reason.

I'm thankful to MS for setting the standards in quality and being so stringent with those standards.

MS is geting paid because they earn their fucking money not because people are forced to pay them. No one would pay if the price wasn't right or the quality of service wasn't up to par.


The only people that I know of that have bitched and moaned about the cost of XBL are my little teenage cousins who can't afford it (they would be all over it if mommy paid for it) and a herd of people on gaming forums... Specifically gaf.
 
I must admit I don't find Xbox live to be worth the money I pay for it.

The justification usually for Xbox live is cross party chat which I find quite ridiculous for the subscription fee, especially at how bad the codec is.

Having paid for Playstation Plus, I must admit the discounts found in the PSN store have actually been really welcomed.
 

Gen X

Trust no one. Eat steaks.
Heavy's Sandvich said:
The justification usually for Xbox live is cross party chat which I find quite ridiculous for the subscription fee, especially at how bad the codec is..

Didn't they improve the codec in the last update?

Having paid for Playstation Plus, I must admit the discounts found in the PSN store have actually been really welcomed.

I was discussing this the other day with a friend (he has PS+ and I dont) and the discounted Xmas special price of Lara Croft and the Guardian of Light for PS+ users was more than XBL users whether they were Silver or Gold. From memory LCGoL was reduced from 1200 to 600 Allards which equals £5.10 and the PS+ price was reduced from about £12 to £7.95 while the none PS+ price was £8.95.
 

Man

Member
Dreams-Visions said:
does free online gaming in the PlayStation world end with the PlayStation 4?

I expect it to. Shareholders will not have their competitors selling more units AND making billions off a paid online solution.
I except the divide between PSN and PSN+ to widen but online gaming will still be free.
 
Man said:
I except the divide between PSN and PSN+ to widen but online gaming will still be free.
what kinds of things do you feel PSN+ needs to offer that will really make it appealing to the masses?

I assume neither MS nor Sony have found the right combination of things beyond gaming, which is why Silver does not include gaming and PSN+ isn't selling so strong (afaik).

So what can be offered beyond the main attraction (gaming) that will appeal to the masses?
 
Joe said:
hardware company having a hard time making money on software is not surprising to me.

?

I'm pretty sure that most of the profits as a 1st party comes from software (either 1st or 3rd party) -- hence the whole razor-blade model.

I kinda think I know what you meant to say, but that's just not true.
 
Live is superior. The experience is better by far due to a number of features PSN lacks. My friends are all there. And 360 usually has the superior version of multi console releases. I even prefer most of the 360 exclusives over PS3. I set that shit on auto-renew and didn't look back.

Sony would have charged if they felt like they could have even slightly completed with Live at launch. PSN is getting better, but still a long ways from where XBL is. Sorry people, Sony doesn't love you. They would take every dime from your wallet if they could with PSN. Don't expect it to stay free forever.


p.s. lol at all of the bitter pc gamers in this thread.
 
Scooter said:
Like I said you're making excuses to feel better for getting ripped off. "If Sony had a service half as good as Live"? Are you serious? I can talk to to my teammates and invite them in all the latest AAA games. Cross-talk is a nice extra feature but it's not worth 60 dollars and doesn't make the service twice as good. You haven't even explained why Live is twice as good or why it has better ease of use, you're just talking out of your ass without even supporting what you say.

That's the kind of cognitive dissonance I'd expect from people who pay money for P2P gaming while I still play many games with dedicated servers on PSN for free.

I didn't say it was twice as good - I said when Sony launched PSN it wasn't half as good... I also said it made strides and has caught up... There is a clear difference between what PSN was when XBL was first launched and charging, and where it is now. I don't doubt that PSN is a good service, especially given the price... but most XBL subscribers would agree that it's a superior service to PSN and as such the nominal fee is a non-issue.

I am not making excuses for anything... I have and use both networks, and the XBL is always, always a better experience, whether it be the finding/downloading content, communicating/playing with friends or just the overall seamless integration between all the elements. You might not agree, and I'm not going to get into a feature-list post to try and compare the two and justify what I am paying for. Also I'm not sure where you're getting the dedicated server bullshit - but from what I've experienced/read there are few games with dedicated servers on either PSN or XBL. Furthermore, as I said before, it's easy to criticize if you simply look at it as a P2P multiplayer fee... but the cross-game chat, better design and ease of parties/invites/chat features etc is worth it to me, and clearly many others.

jonnybryce said:
What? Buying things is super easy on PSN, even easier than 360 because it's actual money and not the points system made to mislead and confuse you. This thread is derailing majorly but there really isn't this huge difference in quality imo.

I don't think it's Sony thinking PSN isn't good enough to charge for, it's them wanting to keep that advantage and selling point.

It's not the 'purchasing' that is difficult, of course that's easy - it's navigating the menus, accessing demo's/trials (every XBLA game has a trial) and finding deals/discounts. It's not downright awful, and realistically not that much worse than XBL... but I find XBL a better experience - one that makes the monthly fee easier to swallow.


corkscrewblow said:
The fuck is this? :lol

It's more around 75% have mics from what I've seen. Doesn't matter, I instantly mute everyone that I'm not in a party with. People are loud and annoying.

That's fine, you experienced a different number of mic users... it's not unrealistic to expect differences between two users with regards to team communication. I live in Australia and (assuming you don't) likely play at different times, with different people on different games... and I find that a good 95% of users do not have, or do not use a mic when playing.


On a side note - I think that what makes this more difficult for Sony, and conversely, easier for Microsoft - is the fact that a significant portion of XBL subscribers are paying to play with friends, friends who don't necessarily renew at the same time of the year, and therefore are renewing/running-out of subscription time at different instances annually. The point being that one friend is forced to renew to keep playing games with another friends, who has to renew a little later etc etc. At some point it becomes a strong members club - where exclusion or refusal to resubscribe is detrimental to the social element online. Of course, no-one is forced to pay - but it becomes exponentially more difficult for Sony to 'win' XBL/Xbox users no matter how much the service improves.
 

Rad-

Member
Well from what I compare my spendings PSN vs XBLA:

XBLA:
180€ on Live fees (4 years bought from different sources)
220€ on XBLA/Indie games

PSN:
35€ on PSN games

... so I'm not shocked that Sony doesn't make much if any on PSN. Biggest weakness of the service is the lack of demos for most titles I'm interested in and just overall lack of titles compared to XBLA (or Steam).
 

Dabanton

Member
Rad- said:
Well from what I compare my spendings PSN vs XBLA:

XBLA:
180€ on Live fees (4 years bought from different sources)
220€ on XBLA/Indie games

PSN:
35€ on PSN games

... so I'm not shocked that Sony doesn't make much if any on PSN. Biggest weakness of the service is the lack of demos for most titles I'm interested in and just overall lack of titles compared to XBLA (or Steam).

That's my biggest peev with PSN,the lack of demos for ALL titles drives me crazy and like you most of my DD purchases are made on Live which surprise,surprise has demos for every XBLA title.
 

Wazzim

Banned
GaimeGuy said:
the only platform in the last 15 years to have pay to play, peer to peer online gaming is the Xbox. That shit disappeared from everywhere else back in the late 80s/early 90s.

If this pay to play shit spreads to the other console platforms, I will curbstomp every person who ever paid for xbox live and contributed to this bullshit.
15 years ago? Really? The bandwith costs are enormous now with the millions of accounts logging in every day while back then people didn't even have fast enough internet for streaming porn.
 
Dabanton said:
That's my biggest peev with PSN,the lack of demos for ALL titles drives me crazy and like you most of my DD purchases are made on Live which surprise,surprise has demos for every XBLA title.

This is a big factor. Given how disappointed I have been with alot of smaller/downloadable games, I will demo all but the best games, something that is much easier on XBL.
 

snack

Member
I'm not surprised. XBOX LIVE is in so many ways superior over PSN. Sony still has many things to learn from Microsoft.
 

onken

Member
Rad- said:
Well from what I compare my spendings PSN vs XBLA:

XBLA:
180€ on Live fees (4 years bought from different sources)
220€ on XBLA/Indie games

PSN:
35€ on PSN games

... so I'm not shocked that Sony doesn't make much if any on PSN..

Taking anecdotal evidence to new heights ITT.
 

tzare

Member
Gen X said:
When your highly anticipated $60million console exclusive driving simulator released in Nov 2010 doesn't even have the basic features mentioned in your post then there is something wrong somewhere in the system.
it will probably will have matchmaking. Hopefully it will be available sooner than later unlike Gears2 online patches that only came a year after release to make it playable.
we can have examples on boths sides. GT5 despite its flaws has a variety of options, including gamechat quality to avoid latency problems for example. I see it more like a developer fault than a PSN issue. I'll give you another PSN example: Dead Nation, which was patched just after release.
Then you can find absolutelly awesome online games like Warhawk or MAG. We can stare at that lacking game or take the whole picture: PSN is capable of most things you can do on XBL and viceversa
 
Barkley's Justice said:
i worry about this net neutrality bullshit too...what if all of a sudden your service provider says, "AYE! all that zune/psn video downloading and online game paying shit is costing us too much bandwidth. time to pay extra for that shit.' that sort of 'network discrimination' is what is at stake at the moment with all that nonsense.

that's what really worries me. i think everyone should just get used to paying for psn tho. sony no doubt wants them some of that xbl money.
Well it's not like the ISPs never had bandwidth caps.
 

pixelbox

Member
No disrespect but what the fuck is the problem? Is it really so hard to read? It has been explained I don't know how many times in this thread as to why it isn't profitable/not creating profit, so what's there to discuss? And as for the Live vs Psn, has it ever crossed you mind that there are people that actually find Psn's interface better than Live? I sure as hell do. I find whatever i'm looking for with ease in the ps store, games have the same options found in live, and best of all I don't have to pay a cent. And to be honest, Live's features vs PSN is a wash especially if you are a home/plus user. As a matter of fact, PSN has a good amount more features than Live in that state. They've stated that they would be profitable soon and I believe them. Until then I'll be glad with my free evolving service.
 
Dabanton said:
That's my biggest peev with PSN,the lack of demos for ALL titles drives me crazy and like you most of my DD purchases are made on Live which surprise,surprise has demos for every XBLA title.
Sony leaves it as an option for developers/publishers. They want to be as open as possible to developers where if they want to get a game out first before demo gets released, they can do that. If they want people trying out their game first, they can do that. Most publishers choose not to release a demo possibly because they are happy with the sales. I thought I remember it being proven somewhere that PSN games without demos (but at least a trailer) usually had better sales than games with a demo

At the same time, a lack of demo COULD be related to the bandwidth charges Sony has (which may explain why XBLA gets a demo for Sonic Adventure, X-Men, etc. while PSN does not). If tons are downloading a demo and not buying, that would cost a developer money. By not releasing a demo, they are only making money off of what they sell on PSN. That is kind of how I see it right now.
 

Kentpaul

When keepin it real goes wrong. Very, very wrong.
Regarding pay-to-play why would someone who has two consoles pay to use PSN if its always playing catch up to xbox live.
 

speedpop

Has problems recognising girls
So you've got a lot of people in here defending this rort, and alluding to the fact that they support Sony to introduce a compulsary subscription model within the future. There is no .gif and no rational one-liner to really sum up my disbelief at many posts in this thread. When did gamers.. nay, customers decide to castrate themselves?

Jesus fuck.

And that's coming from someone who plays MMOs irregularly.
 

-viper-

Banned
:lol @ the people justifying Xbox Live's pricetag.

Here is a hint: You're getting ripped off, no matter what way you twist it.

I've got an Xbox 360 and have used a 30 day free trial and saw nothing 'revolutionary'. The system is unified, and has some additional features like invites and cross game chat but at the end of the day, the core experience is exactly the same.

If PS4 starts charging for online play, then I'm going to give up on console gaming. My 360 barely gets any use because they're charging for online play. The best thing about the PS3 is the free online play. Don't really need cross game chat as I use Skype to talk to my friends. So it's us talking and us only, no matter what team we're on in a game.
 

shintoki

sparkle this bitch
BoilersFan23 said:
Sony leaves it as an option for developers/publishers. They want to be as open as possible to developers where if they want to get a game out first before demo gets released, they can do that. If they want people trying out their game first, they can do that. Most publishers choose not to release a demo possibly because they are happy with the sales. I thought I remember it being proven somewhere that PSN games without demos (but at least a trailer) usually had better sales than games with a demo

At the same time, a lack of demo COULD be related to the bandwidth charges Sony has (which may explain why XBLA gets a demo for Sonic Adventure, X-Men, etc. while PSN does not). If tons are downloading a demo and not buying, that would cost a developer money. By not releasing a demo, they are only making money off of what they sell on PSN. That is kind of how I see it right now.
God, are people that happy and willing to defend shitty services? I'd love to see proof of "No-name PSN title does better than one with a demo".

XBLA requiring a demo is one of the few great things MS did this generation. Download the full game, where only a portion of it is locked. Like it, buy it and it keys in the unlock for it. Anything that came out for the week, weekly sales included are advertised right on the front page. Exactly like Steam. It's funny actually, didn't MS just announce that Live is now a billion+ dollar revenue source. And Steam(Another free service) has manage to win over nearly every major PC publishing house, making money over fist. So why is it PSN is still flailing in the wind? 4 full years since it came out, and in the 5th they may be profitable for the first time. It's probably time to start looking at the competition and see why they are much more successful than they are. And no, I'm not referring to pay for online shit either.
 

iceatcs

Junior Member
We must very gratefully that we can play online gaming free this gen. I hope it will keep this way in the future.
Maybe Sony should buy AOL lol?

Otherwise I might go back to PC again.
 
BoilersFan23 said:
Sony leaves it as an option for developers/publishers. They want to be as open as possible to developers where if they want to get a game out first before demo gets released, they can do that. If they want people trying out their game first, they can do that. Most publishers choose not to release a demo possibly because they are happy with the sales. I thought I remember it being proven somewhere that PSN games without demos (but at least a trailer) usually had better sales than games with a demo

At the same time, a lack of demo COULD be related to the bandwidth charges Sony has (which may explain why XBLA gets a demo for Sonic Adventure, X-Men, etc. while PSN does not). If tons are downloading a demo and not buying, that would cost a developer money. By not releasing a demo, they are only making money off of what they sell on PSN. That is kind of how I see it right now.
I think you'll find a much higher percentage of folks who buy blind (because there are no demos available) end up being less likely to buy more games because of a greater incidence of having unfavorable experiences or, at least, feeling they've been overcharged for the experience they got simply because they didn't get a taste of what they were paying for (with no chance for refund or exchange) beforehand. (I know plenty of people who download and try the XBLA demo of a multi-platform game before deciding to purchase the PSN version :)lol)) To me, no demos on DD-only stuff generally equals a digital consumer-unfriendly shopping experience. I'm pretty sure that XBL sales dwarf PSN ones even despite the WW userbase totals being relatively close...and that's with half or more Live users being Gold subscribers. That says, to me, that people are clearly more willing to pay for something they value and continue to do so in the face of free options that are, IMO, lesser services. I'm not sure why anyone would defend PSN's lack of demos or, really, consistency in features. I want to have comfort of reliability in my online console interaction, not a crap shoot...which is what PSN feels like. And I'm willing to part with ~$45 a year to have that comfort.
 
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