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[zeorhymer]

The PlayStation 4 is still going strong, but as hardware sales begin to decline, Sony is focusing more on the online services and subscriptions that are tied to the platform, the company said today during its annual Investor Relations Day.

Polygon reporting in on Sony's IR Day

Sony's Investor Relation's Slides

Key take aways:

End of 2017:

• 79M units sold as of March 2018
• 80M+ PSN Accounts
• 8M new PS+ over 2016
• Vue and ForwardWorks not doing so well (ForwardWorks is the mobile game)
• +18% revenue from 2016

Strategy for 2018

• More online services
• Different game models (PS Now, F2P, Mobile, and console)
• PS4 Hardware sales are declining
• Changing mantra from "We are aiming for X units" to "We are aiming for X MAU"
• Game & Network Service Segment will account for #2 of total income across all segments.

My first topic post. Hopefully it's informative.

 

[GoldenEye98]

Changing mantra from "We are aiming for X units" to "We are aiming for X MAU"

sounds familiar...

But seriously revenue from PS+ must make up a significant amount of revenue for Sony overall these days right?

 

[MayauMiao]

• PS4 Hardware sales are declining

A good price cut can solve that.

 

[zeorhymer]

sounds familiar...

But seriously revenue from PS+ must make up a significant amount of revenue for Sony overall these days right?

2015 had 20.8M, 2016 had 26.4M and 2017 had 34.2M subscribers. It's been growing about 6M+ a year. We'll see how it increases this year. Unfortunately, there were no projections for 2018 PS+ subscriptions.

 

[RokkanStoned]

Strategy for 2018

• PS4 Hardware sales are declining

 

[Insane Metal]

• PS4 Hardware sales are declining

A good price but can solve that.

Surely you mean cut? Lol

Also... all hail the mighty MAU.

 

[Imtjnotu]

A $200 ps4 will fix declining sales

 

[RokkanStoned]

On a more serious note, are they anticipating Switch overtaking them in hardware sales and doing the clever move of switching to MAU (perhaps knowing they have a higher amount than Microsoft?)? Or have MAU just chimed better with investors?

 

[Northeastmonk]

I'm guessing they've got a handful of late adopters, but the sales aren't like their first couple years with a steady increase. IMO the console isn't exactly out the door, but they have to look at the present and future. I'm not down about wanting another console. It's just with the speculation of new hardware, there's 79 million consoles sold. I cant imagine them having the gameplan for another console in 2018. That would be an Apple move. Sell as much as you possibly can and announce a new product to make up for the slow decline in sales.

What has been difficult; has been being an early adapter. It took a solid amount of time for these consoles to show their true potential. I honestly think the public or the majority of console owners are still looking at the PS4 with hopes of doing more than another 16 months.

I wonder if they expect all the late adopters to be early adopters for a new console. I bet Sony will try and time the new PS just right.

Edit: I believe the PS4 still has quite a bit of life in it, plus paying another $400-$500 for a console right now would suck. Right now I want games more than I want new hardware.

 

[bitbydeath]

Sony dropped the ball massively on Vue. It was meant to arrive in Australia in 2015, before Netflix. Still nothing and the longer they leave it DisneyFlix’s arrival will lock them out of the market even further. Dead before it’s even alive.

 

[RokkanStoned]

Sony dropped the ball massively on Vue. It was meant to arrive in Australia in 2015, before Netflix. Still nothing and the longer they leave it DisneyFlix’s arrival will lock them out of the market even further. Dead before it’s even alive.

Most software efforts feel like they're badly planned by Sony. It really affected the Vita in Europe and even their other efforts on PS4, while being better in terms of apps, still falls way behind when it's on their own initiatives. "Rolling features out" on a region basis has felt terrible with Sony.
Still, it's better than the Switch, which has none.

 

[Dr. Claus]

I'm guessing they've got a handful of late adopters, but the sales aren't like their first couple years with a steady increase. IMO the console isn't exactly out the door, but they have to look at the present and future. I'm not down about wanting another console. It's just with the speculation of new hardware, there's 79 million consoles sold. I cant imagine them having the gameplan for another console in 2018. That would be an Apple move. Sell as much as you possibly can and announce a new product to make up for the slow decline in sales.

What has been difficult; has been being an early adapter. It took a solid amount of time for these consoles to show their true potential. I honestly think the public or the majority of console owners are still looking at the PS4 with hopes of doing more than another 16 months.

I wonder if they expect all the late adopters to be early adopters for a new console. I bet Sony will try and time the new PS just right.

Edit: I believe the PS4 still has quite a bit of life in it, plus paying another $400-$500 for a console right now would suck. Right now I want games more than I want new hardware.

There is no plan for another console this year, unless there is some huge secret that they have been keeping. They are obviously working on the next proper console currently (PS5), which many believe to release in the '19/'20 window. I expect to see a price cut either this E3 for the PS4 slim and PS4 Pro (by 40-50 USD), or at a later press event (maybe PSX, TGS, or Gamescom?).

With the changes to PS+, there will be far more "free" PS4 games coming to the system, which will help push sales for late adopters (along with the aformentioned price cut). This can help them keep sales up until the new console is released (which will then follow another price cut to the PS4 family, assuredly).

 

[The_Mike]

A $200 ps4 will fix declining sales

But why would people need two or even three PS 4’s?

 

[JaffeLion]

so.. they are going for the xbox way?

 

[mckmas8808]

so.. they are going for the xbox way?

LOL no.

 

[ThatStupidLion]

Sonys 2018 focus - mobile???? Wtf?!

Sucks vue isnt doing as well as they want. I have two nongaming friends that love it and was consodering i myself when I move.

Ps5 release fall of 2020 is my guess!

 

[Imtjnotu]

But why would people need two or even three PS 4’s?

Its more for people who haven't adopted yet. Ps2 hit those sales because of its price tag at the end.

 

[Dabaus]

Strategy for 2018

• More online services
• Different game models (PS Now, F2P, Mobile, and console)
• PS4 Hardware sales are declining
• Changing mantra from "We are aiming for X units" to "We are aiming for X MAU"
• Game & Network Service Segment will account for #2 of total income across all segments.

Its like they've chosen everything they shouldn't do and decided to go full steam ahead with it. Where is the investment in first party titles and exclusives? Investment in new studios and technology? Outreach to third parties? Focus on backwards compatibility? This looks like a Microsoft list more than what we expect from PlayStation.

 

[Pejo]

Disappointed to see the focus on MAU. Games as a service is here to stay.