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Sony Q3: Game Operating Income $53M (PS3/PS2 15.6M in 2012)

spwolf

Member
The tech is pretty much perfect for video rentals. It has far more uses than just gaming.

what tech? No its not... plenty of companies do streaming, nothing special about it. Spreading Gaikai thin so you can do commodity service is crazy dumb.

Thats like saying that Vita needs Tetris game so Santa Monica should do it.
 

see5harp

Member
I'm finding it hard to imagine how Gaikai would be better suited for video streaming for the end user. I start the video, it plays.
 
If they want to fix the Vita situation, ground up new IPs are not going to the trick. They need to pay off major third parties for top quality games. That means MonHun, FF and Tales. Those three are the trinity of third party games for Sony. If they want to buy From and other studios later on then that's up to them, but to fix Vita, they would need to pay now, get the word out that MonHun/FF/Tales is coming to Vita exclusively and then hope that interest holds out until the games are released or that the uptick from the announcement is enough to boost game sales for other third parties and more publishers get on board automatically.

Why would they try to get those and not DQ? Doesn't make sense to me, DQ should be top priority along with MH. And I thought you were talking about 20-30B Yn for Tales alone.
 
Why would they try to get those and not DQ? Doesn't make sense to me, DQ should be top priority along with MH. And I thought you were talking about 20-30B Yn for Tales alone.

No, I meant for all three. As I understand it the way these pay offs work is that Sony guarantee a certain amount of income based on sales targets. If those targets are met then Sony get a partial refund and it works in tranches. Sony would pay say 30bn up front to Capcom for two MonHun games and franchise exclusivity for 3 years, after 2m in sales Sony would get a 5bn refund, and so on. They would also underwrite the production and promotional costs.

So for 20-30bn Sony could secure their holy trinity, MonHun, FF and Tales. It's a lot of money up front, and most of that wouldn't be made back, but it would increase Vita sales to a respectable level and get other third parties on board without resorting to payola.

For Vita in Japan, I don't see any other way out. Releasing a game like FFXHD alone without anything to accompany it is a waste. It will increase Vita sales for one or possibly two weeks.

As for DQ, I think the asking price would be much higher than potential returns. Tales would give much better returns for Sony.
 
No, I meant for all three. As I understand it the way these pay offs work is that Sony guarantee a certain amount of income based on sales targets. If those targets are met then Sony get a partial refund and it works in tranches. Sony would pay say 30bn up front to Capcom for two MonHun games and franchise exclusivity for 3 years, after 2m in sales Sony would get a 5bn refund, and so on. They would also underwrite the production and promotional costs.

So for 20-30bn Sony could secure their holy trinity, MonHun, FF and Tales. It's a lot of money up front, and most of that wouldn't be made back, but it would increase Vita sales to a respectable level and get other third parties on board without resorting to payola.

For Vita in Japan, I don't see any other way out. Releasing a game like FFXHD alone without anything to accompany it is a waste. It will increase Vita sales for one or possibly two weeks.

As for DQ, I think the asking price would be much higher than potential returns. Tales would give much better returns for Sony.

Is it fair to say that 30b yen with possible refunds based on performance is what Nintendo paid for MH3G + MH4 exclusivity? IIRC the rumor is it's exclusive to 3DS for 3 years (on portables).

I'll send you a PM on what I think about the rest so as to not further derail the thread.
 

Averon

Member
As others have said, Sony should make a portable/mobile subdivision within SCE. The current way they're handling portable and mobile just ain't cutting. I mean, how many Sony 1st and 2nd party are working on Vita titles? SCEA handling of the Vita has been shameful, to say the least. SCEJ have no franchises to push the platform. SCEE seems to be the only division that's doing anything meaningful with the Vita, and that ain't saying much. I guess one reason is cultural. The vast majority of SCE's developers are consoles developers, and probably see handheld gaming as "beneath" them. I just think Sony as a whole don't take handheld gaming seriously. How they and Nintendo handle handhelds makes that very, very apparent.

Like the PSP, I fear the Vita will be left donce the PS4 is released.
 

jcm

Member
God... and people were bagging on Nintendo for only making 160 million.

Hope Sony can get those numbers up, but with the generational switch incoming, it's much more likely tomorrow.

No, people were bagging on Nintendo because they had an operating loss again.
 

coldfoot

Banned
The phone yes the tablet no. Only apple has decent margins on tablets. Android tablets are on a race to the bottom. No use sinking money into something that won't make money. Better off using the money to double down on phones which could be a huge money maker if done right. Thanks to insane margins.

The phone is harder to do due to the difficulty of getting good gaming controls on a phone form factor and size, but it should still be attempted.

The tablet would do something that no other tablet does, and that is to be a proper gaming tablet with physical controls. Your ipad can't give you a gaming experience like Uncharted or Killzone without physical controls, but the ViTablet would. Sony could get away with selling them at premium pricing. Imagine playing COD at starbucks on your tablet, that's one experience that no other device can give you and I believe there is a market for it. Tablets are used mostly for entertainment and gaming that's a bit more than just a touchscreen is an important chunk of entertainment.
 

vivftp

Member
As much as I want a new phone like the Xperia Z, I'd trample over its broken corpse to get my hands on a quality Vita phone.

PLEASE Sony, make that a reality!
 

quest

Not Banned from OT
The phone is harder to do due to the difficulty of getting good gaming controls on a phone form factor and size, but it should still be attempted.

The tablet would do something that no other tablet does, and that is to be a proper gaming tablet with physical controls. Your ipad can't give you a gaming experience like Uncharted or Killzone without physical controls, but the ViTablet would. Sony could get away with selling them at premium pricing. Imagine playing COD at starbucks on your tablet, that's one experience that no other device can give you and I believe there is a market for it. Tablets are used mostly for entertainment and gaming that's a bit more than just a touchscreen is an important chunk of entertainment.

I just don't think people want buttons and controllers built into tablets. I could see a docking station with a control pad built into it. I think it is fools gold to be honest tablet users want simple games like angry birds for the most part. Android makers have thrown almost everything but the kitchen sink at the tablet issue but the only thing that has worked is bottom barrel pricing.
 

vivftp

Member
I dunno, I think a phone and tablet with slide out physical controls would be great. The Xperia Play was alright, but there was much room for improvement. The current tablets coming out with controls always on the side, or massive physical control accessories just aren't ever going to be popular enough to challange the big dogs in the tablet world.


Let's look at Sony here. They have a new 6.9mm tablet and a 7.9mm phone coming out in the form of the Xperia Tablet Z and Xperia Z. That's a great place to start as those devices are thin enough that you could potentially slap on a slider function for physical controls and still keep them in the same thickness range as their peers. I suppose the biggest challange in these types of designs is the analog sticks, so I'd be perfectly fine with them using something like the PSP nubs in place of them. They still give a great physical control experience, and they aren't nearly as useless as the circular track pads on the Xperia Play.

Make a quality Vita phone and Vita tablet and I'll first cream my pants, then buy 'em :)
 

coldfoot

Banned
I just don't think people want buttons and controllers built into tablets. I could see a docking station with a control pad built into it. I think it is fools gold to be honest tablet users want simple games like angry birds for the most part. Android makers have thrown almost everything but the kitchen sink at the tablet issue but the only thing that has worked is bottom barrel pricing.
Sony is different than other android tablet manufacturers as they're already funding the types of games that no one will make for Android. The Wii U controller feels really nice, Sony could make a tablet that's similar to that with a nicer screen.
 

treason

Member
Sony is different than other android tablet manufacturers as they're already funding the types of games that no one will make for Android. The Wii U controller feels really nice, Sony could make a tablet that's similar to that with a nicer screen.

something tells me sony will make a wii u like tablet
 
what tech? No its not... plenty of companies do streaming, nothing special about it. Spreading Gaikai thin so you can do commodity service is crazy dumb.

Thats like saying that Vita needs Tetris game so Santa Monica should do it.
Uh what? This a lot different than Netflix buddy.

There are no companies out there with algorithms as advanced as gaikai and onlive.
 
Gaikai and OnLive's strength is real-time encoding of streaming content. That's actually a really inefficient way to stream movies and TV shows. Netflix just encodes every piece of video content at like 100 different resolutions and bitrates ahead of time and then dynamically chooses the best for a given device and connection speed. It requires lots of storage, but that is way better than the processing overhead needed to encode in real-time.
 
Uh what? This a lot different than Netflix buddy.

There are no companies out there with algorithms as advanced as gaikai and onlive.

At this point much of the tech is now being built directly by nVidia. Who have surpassed the initial innovations by companies like OnLive.

http://www.nvidia.com/object/cloud-gaming.html

It's who GaiKai is now partnered with. But it was initially innovators taking GPUs and doing things with them no-one else had done as successfully. In particular virtualization making the idea of cloud gaming remotely cost-effective (I still question whether it truly is, compared to the ever-shrinking cost of having client hardware that can render great looking games anyways), and getting the video encoding/streaming speed down to as few as milliseconds as possible.

Once nVidia stepped in they've been able to decrease the total milliseconds it takes to interpret commands and have video frames to return to the user WAY down. From their site:

game-latency.jpg


That chart is slightly misleading IMO, as it includes a cut-down time for getting frames to your TV, which I believe is a client-side tech that most devices won't have for some time.. but it is indicative of a future where various areas of current "latency" we deal with are getting cut down.. which means that adding in the latency of the best-possible "Cloud Gaming" architecture might very soon feel EXACTLY like the local games of today.

Of course.. remove that latency and you also get better locally rendered games.. that people might get used too.. and then even though cloud feels like current games, we all think it's slightly delayed anyways, lol.

At this point the gameplay is pretty damn good.. the bigger issue being the inability to actually be able to afford to grant enough horsepower to make the video not look.. "off." Low settings in the game, and since the encoding has to be FAST, it's highly compressed video.

It just doesn't quite look as good as a locally rendered game. And they aren't currently able to afford to push graphics that are even on-par with current-gen consoles.. OnLive was barely competing graphically while bleeding money like crazy.

My hope for Sony is that they can actually get people to spend big cash for games on Gaikai. If Gran Turismo 6 can sell 5 million GaiKai licenses at $60 a pop.. that is an entirely different game that Sony is playing than the currently dinky sales of OnLive and Gaikai.. and they might be able to afford to actually make the games look good.

Especially if they can make the clients exclusive to their own products when it comes to the living room. Only Sony TV's have this client.. suddenly all of us gamers have a reason to choose a Sony TV. Suddenly new people might think about buying games via their Sony TV. Imagine if Madden 2014 ads are showing up on your Sony HDTV during football games.

I think Sony is maybe the one company that can afford a cloud gaming service that actually has so many side-benefits that the expense of such an incredible server architecture would be justified.

But I still have my doubts...

Imagine if everyone accessing PSN right now was actually rendering a game.. that would quite probably require 100's or even 1,000's of times the computing resources as PSN currently does.. with far more server farms, more closely disperesed to more people because of how important latency is, and the reality that it IS in fact affected by the distance and the speed of light over copper/fiber/etc.

I ramble about this.

lol
 
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