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[CyberPanda]

Kenichiro Yoshida talks in broad terms about the future.

The surprise collaboration with Sony and Microsoft got the gaming world talking last week. While it is focused on cloud-based gaming and streaming infrastructure, it hasn’t stopped people from speculating just what it means for the future of the industry that two of the key players are working together. Sony CEO Kenichiro Yoshida took to investors to explain a little more about the partnership, and where he sees it leading the company.

At Investors Relations Day, Yoshida talked in great length about how Sony has struggled with some of their online infrastructure in the past and that use of Microsoft’s Azure makes sense to improve that as streaming will be a big part of the industry’s future.

“We’ve been working with streaming services over the last five years and there are various difficult aspects. The network latency, for one. Some examples I could cite, for instance, the typical means of minimizing latency is the placement of servers on the edge closer to users, but moving servers closer to one group of users can mean increasing latency for another group of users.

And also, there will be an encoding process at the very end, and how we can minimize the time for compression is another challenge. And also, in order to make it a viable business, what would be the business model? Our service is a subscription model now, but depending on the game, one could be played for fifty or a hundred hours and for someone playing one game like this, what is the advantage of a subscription service per month, the all-you-can-play type of model? So in terms of technology and services, there are various aspects we would like to look into with Microsoft going forward, especially in terms of streaming solutions. We would like to proceed through collaboration.”

Hinting at the inevitable streaming focused future, he also cites it as an important evolution the company will have to go through as console gaming, as we know it, is “niche,” and streaming will open up opportunities that aren’t as readily available with dedicated devices. This is something already in its infancy with PlayStation Now, something Sony has used to dip its toes in going beyond a single device.

“As we speak, we provide, as I said, the immersive business and experience is something we would like to continue to place importance on. If you look at the game industry as a whole, the console market is not a major market, rather it’s a niche market if you will. But for core gamers, immersive experiences are something we would like to value. In this respect, for the time being, the console as something that brings about computing functionality to the users is very important, but on the other hand, technology will progress and so as I said today, the Remote Play and PlayStation Now, the streaming services will be worked on in parallel, that is what we are doing at this moment.”

Who knows where all of this will ultimately lead, but one thing is for sure, Sony has the future in mind.

Sony CEO Talks Microsoft Collaboration, Calls Console Gaming “Niche”

gamingbolt.com

 

[FranXico]

Clickbait is clickbait.

 

[STARSBarry]

but what about my anime titties did they mention anything about that?

 

[TGO]

 

[Bernkastel]

I hope Phil asked Nadella to sneak in a deal for SF V and exclusive Destiny content along with the streaming deal.

 

[MiyazakiHatesKojima]

Wtf? I love streaming now.

 

[a multicultural team of v]

I mean its just talk to make sure they stress the streaming buzzword, there is no way he can seriously call consoles niche while on the same day reporting nearly 100 million PS4s sold lol

Like I can't tell if these companies are scared of Stadia, or if they are scared that investors are scared of Stadia.

 

[Stuart360]

I mean its just talk to make sure they stress the streaming buzzword, there is no way he can seriously call consoles niche while on the same day reporting nearly 100 million PS4s sold lol

Like I can't tell if these companies are scared of Stadia, or if they are scared that investors are scared of Stadia.

Probably lost in translation. Athough i suppose 'potentially' there are a lot more potential gamers in streaming than in having to acually own a piece of hardware.
Anyway like i said yesterday, the future is streaming. I dont want it, many gamers dont, but its going to happen. The only thing gamers can do is slow it down by keeping buying consoles and hardware, and not subscribing to any streaming service, even if they have trials or big promotions.

 

[joe_zazen]

While niche compared to mobile, like 90%+ all of their gaming profits come from console players. If streaming is the future, PS as a platform with a 30% tax is doomed.

Good luck competing in non console gaming Mr Sony. Like why would i use sony streaming when they are just subletting from Microsoft? They’ve got an extra middleman between me and them that microsoft and google wont have.

I think sony is in the first e of the Microsoft patented embrace, extend, and extinguish cycle.

 

[Klayzer]

and now 90% of the forum will suddenly like streaming.

and now 90% of Xbox gaffers will suddenly start high-fiving each other like they won something.

 

[Stuart360]

and now 90% of Xbox gaffers will suddenly start high-fiving each other like they won something.

Well Xbox fans seem to be against streaming as much as anyone. Its the casuals we ahve to worry about. If they start taking up streaming, we are screwed.

 

[TwiztidElf]

This is all going to end badly.

 

[zeorhymer]

WTF. They had a whole section with *multiple* slides on console gaming. What a trash article. It takes 5 seconds to look at the slides.

 

[DanielsM]

This is all going to end badly.

The bloodbath is going to continue for quite some time.

 

[GreatnessRD]

I hope I can enjoy this upcoming last generation of consoles before my retirement. I want zero parts of this all digital, streaming world. So help me go out with a bang Sony, Microsoft and Nintendo! Make gaming great again!

 

[Dargor]

They'll never get a dime of mine if they go full streaming. Want my money, better have physical and don't even think about putting any barriers on it.

 

[Aintitcool]

When I tried Gaikai before it was bought by sony it was already amazingly good at low latency and image quality. I played their demo of Alan Wake and was amazed. On PS Now I tried PS3 games and was disappointed. I wonder if those innovators left the company after the buy out and now sony is forced to go elsewhere because inhouse somehow failed to meet the expectations. Than sony also bought OnLive tech and they too had a great system.

Sony has been in the streaming market longer than microsoft but somehow microsoft still leapfrogged them in tech and that's just sad.

 

[kevin_trinh]

While niche compared to mobile, like 90%+ all of their gaming profits come from console players. If streaming is the future, PS as a platform with a 30% tax is doomed.

Good luck competing in non console gaming Mr Sony. Like why would i use sony streaming when they are just subletting from Microsoft? They’ve got an extra middleman between me and them that microsoft and google wont have.

I think sony is in the first e of the Microsoft patented embrace, extend, and extinguish cycle.

Better game, better hardware, same power of the cloud?

 

[bitbydeath]

 

[Texas Pride]

Imagine a 3rd of your companies revenue being "niche". That must be fucking nice. Keep up the NIChE work boys.

 

[Pallas]

Console gaming is niche?

 

[Rugabuga]

Console gaming is niche?

Compared to mobile? Yeah. Even PC is growing alot, while consoles have been stagnant.

 

[Pallas]

Compared to mobile? Yeah. Even PC is growing alot, while consoles have been stagnant.

Console market has been stagnant? If anything it’s stronger than ever after this current gen.

 

[Ma-Yuan]

Consoles are keeping them afloat... What nonsense...

 

[Rugabuga]

Console market has been stagnant? If anything it’s stronger than ever after this current gen.

ps4 and xb1 numbers are basically inline with last gen, plus there's been an increase in multi-console ownership.
Nintendo wii u and 3ds together are outpacing the switch, despite the latter being a hybrid.
And lets not get started with the wii and the ds. Portable gaming is dead because of mobile.

 

[thelastword]

So in other words, "Sony has been into streaming for 5 years, they will continue to provide streaming services, but much improved from what we have now".........

 

[Slings and Arrows]

Fuck streaming.

 

[mckmas8808]

Probably lost in translation. Athough i suppose 'potentially' there are a lot more potential gamers in streaming than in having to acually own a piece of hardware.
Anyway like i said yesterday, the future is streaming. I dont want it, many gamers dont, but its going to happen. The only thing gamers can do is slow it down by keeping buying consoles and hardware, and not subscribing to any streaming service, even if they have trials or big promotions.

But how much money per person do these companies make for casual "mobile" players? Especially compared to console and PC gamers.

 

[alabtrosMyster]

I hope they don't put too much ressources in this cloud/streaming effort.

If they want to go after mobile gamers they should make mobile games, I don't see much benefits to streaming interactive content like that... neither do I see benefits in being able to restore your gaming session from your console or PC (with proper input) to your mobile phone or tablet (with touch input)... Maybe I should be more addicted.

 

[Bryank75]

Compared to mobile? Yeah. Even PC is growing alot, while consoles have been stagnant.
[/QUOTE
Not for Sony, they made nearly 3B operating profit last year on 21B of revenue. Bringing total operating profit to over 8 billion. Their best year financially in recent history. They'll easily end this gen well north of 120M consoles, nearly 40m more consoles than last gen.

 

[DanielsM]

I hope they don't put too much ressources in this cloud/streaming effort.

If they want to go after mobile gamers they should make mobile games, I don't see much benefits to streaming interactive content like that... neither do I see benefits in being able to restore your gaming session from your console or PC (with proper input) to your mobile phone or tablet (with touch input)... Maybe I should be more addicted.

Sony moves fairly slow but steady, generally speaking. Just look at VR, they put a little money into it over the last 20 years, and slowly see if there is a market. People don't realize but Sony has been doing VR since the 90s. Same goes with streaming, Sony has been developing streaming since the mid-2000s, Remote Play was actually somewhat working in limited use (testing) on the PS3 back in 2006 for instance. There really isn't much demand for streaming so they are slowly over time working on it, to see if there is a market - the press makes a big deal about streaming because they have nothing else to write about.

They already have the tech, no reason to abandon it, but no reason to throw money down the toilet for the sake of a dozen streaming customers. Remote Play is a nice little feature, I wouldn't pay for it, but its nice that Sony provides that and is trying to improve it. Sony knows streaming isn't going to replace native playing, at least anytime soon.

 

[Gamernyc78]

Wtf? I love streaming now.

Lol No young lad stand your ground!!!!

 

[Neofire]

A very hallow statement, seeing that his own gaming division has kept Sony afloat for the last decade.

As for the "streaming is the future" rhetoric it's inevitable I know but when it does take hold I stop gaming, period. I don't rent video games and I'm planning on to anytime soon.

 

[Virex]

Gamingbolt should be banned on gaf. It's a shit clickbait site. Gamingbolt is shit tier.

 

[MDSLKTR]

Gamingbolt should be banned on gaf. It's a shit clickbait site. Gamingbolt is shit tier.

Also full of malware.

 

[Shifty]

and now 90% of Xbox gaffers will suddenly start high-fiving each other like they won something.

And now the console warriors pop out of the woodwork to slate the other side unprompted, thus perpetuating the increasingly tiresome console war.

 

[Trogdor1123]

Console gaming is niche.... Every market is by definition.

 

[demigod]

Was this approved by a Hellpoint Dev?

 

[joe_zazen]

Better game, better hardware, same power of the cloud?

I am talking about choosing a game streaming platform.

MS will own the hardware and software and will demand a money for Sony’s use of that. So, why would i pay $60 per year for ps+ and pay sony a 30% cut of third party games and pay money to MS for a sony streaming service when i can just cut out the Sony middleman and go strait to Google or MS? Google and MS will have better and or cheaper offerings. If I own the mall, my stores will be able to offer better prices and services than the stores that have to pay rent to me.

I’ll still stream some of their first party stuff, as long as it isn't depressing, with dead moms, daughters, and torture sequences. But using it as a platform? Why? Trophies? Lol. And as far as hardware goes, why bother with PS5 if i can stream their games with no upfront cost? I guess vr experiences?

I dont see how this is a good long term strategy if they believe in streaming. It looks,like they want to ride out the ps profit wave. And stock buy backs says to me they dont know where to invest their money and are using the worst way imaginable to pump up share prices so execs can get their bonuses.

 

[Bernkastel]

I am talking about choosing a game streaming platform.

MS will own the hardware and software and will demand a money for Sony’s use of that. So, why would i pay $60 per year for ps+ and pay sony a 30% cut of third party games and pay money to MS for a sony streaming service when i can just cut out the Sony middleman and go strait to Google or MS? Google and MS will have better and or cheaper offerings. If I own the mall, my stores will be able to offer better prices and services than the stores that have to pay rent to me.

I’ll still stream some of their first party stuff, as long as it isn't depressing, with dead moms, daughters, and torture sequences. But using it as a platform? Why? Trophies? Lol. And as far as hardware goes, why bother with PS5 if i can stream their games with no upfront cost? I guess vr experiences?

I am sure they teamed with Microsoft because the offer was attractive enough to make it both profitable and as good as xCloud. Hell, I wouldn't be surprised if there is an agreement in favour of Microsoft.

 

[Rugabuga]

Sony doesn't represent the whole of the console market. And besides, even if you want to play that one. they made 2.8B in operating profits. You still need to revenue taxes are others deductions to get to neet income.
EA, by themselves, had a neet income of 1.4B from 5B in total revenue. Sony game division had 20B in total revenue.

 

[Klayzer]

And now the console warriors pop out of the woodwork to slate the other side unprompted, thus perpetuating the increasingly tiresome console war.

Yeah, totally unprompted.

 

[joe_zazen]

I am sure they teamed with Microsoft because the offer was attractive enough to make it both profitable and as good as xCloud. Hell, I wouldn't be surprised if there is an agreement in favour of Microsoft.

Or they threw in the streaming towel. We’ll see i guess, but like i said stock buy backs tell me sony management is not about investing for long term growth, but about maximising short term bonuses.

 

[Spukc]

 

[Hudo]

This is all going to end badly.

Is Sony's Season 8 upcoming?

 

[LOLCats]

out of touch CEO.... we know how that ends.

Definitely explains a few things about Sony lately.

 

[DanielsM]

I am talking about choosing a game streaming platform.

MS will own the hardware and software and will demand a money for Sony’s use of that.

So, let me get this right, if I use a cloud provider for anything they own everything on it or runs on it. What happens if I put a server in a co-location, does the data center own my server and everything that's on it? That's not how this stuff really works, generally speaking. They could be using AWS right now and there is a good chance you wouldn't even notice or even know about. My guess, even if they come to an agreement, they'll be using Sony technology for the bulk of the game streaming service, meaning output/input on both ends - why would they change something that's already working?

You are not forced to use all "services" a company can provide, you could simply be using a VM running Linux to run your database for instance, and you can in theory move it back to on-prem or normal data-center.

Since they don't even have an agreement on anything in particular (its mutual understanding to possibly work on things), this is all premature anyway... there really isn't a cloud gaming market to speak of anyway.

 

[joe_zazen]

So, let me get this right, if I use a cloud provider for anything they own everything on it or runs on it. What happens if I put a server in a co-location, does the data center own my server and everything that's on it? That's now this stuff really works, generally speaking. They could be using AWS right now and there is a good chance you wouldn't even notice or even know about.

My guess, even if they come to an agreement, they'll be using Sony technology for the bulk of the game streaming service, meaning output/input on both ends - why would they change something that's already working?

MS is in direct competition with sony, so aws comparison doesn't work. This is more like Netscape trying to carve out a niche on Windows while competing with IE. And it sounds like sony is going to be using ms owned data centers and ms owned streaming software, however, the patent situation might give sony some nice licensing fees for a time if they own a bunch more than MS.

But yes, this is all conjecture.

 

[Great Hair]

 

[DanielsM]

MS is in direct competition with sony, so aws comparison doesn't work. This is more like Netscape trying to carve out a niche on Windows while competing with IE. And it sounds like sony is going to be using ms owned data centers and ms owned streaming software, however, the patent situation might give sony some nice licensing fees for a time if they own a bunch more than MS.

But yes, this is all conjecture.

All the tech companies are competitors and partners at the same time. For the record, nothing necessarily wrong with a little speculation in a discussion.

If I were to guess, this is more about the back-end of things i.e. the ability to say spin-up a virtual console say past the PS5 even, 8-12 years from now. The gaming steaming technology Sony already has, and has been developing for 13+ years. Although, Sony does provide "cloud service", as that is a very general word(s), their experience isn't into virtual host instance software. Right now, its my understanding that neither Sony or Microsoft can spin of virtual PS4/Xbox ones for instance, the goal, in the future I suspect is to be able create very unique hardware which can be more easily replicated in a virtual environment. This in theory, could help both companies... if cloud gaming actually had more than dozen users.

Right now, all they have is a mutual understanding to work on some things, nothing is set in stone and from what Sony said, there are no agreements at this point.