Sony Shifts Focus from Console Gross sales to Participant Engagement: How Will This Affect Profitability?

As we reported earlier this week, Sony delivered its newest monetary report the day earlier than, masking each the final quarter (January-March) and in addition a abstract of the 2023 monetary yr. this has introduced in quite a few fascinating information, together with the truth that Sony is now adopting a brand new approach of measuring success.

For the previous two generations, console gross sales have been a very powerful parameter for Sony, however the firm’s CFO Sadahiko Hayakawa says that they now measure success another way, the place taking part in time is rather more necessary, including to that. “PlayStation’s enterprise mannequin has modified dramatically for the reason that launch of the PS4” :

“The enterprise mannequin as much as and together with the PlayStation 3 was centered on rising the variety of software program models offered relative to new {hardware} offered for every console technology . After a interval of transition in the course of the PS4 technology, the PS5 mannequin has moved to a mannequin the place Play time on the platform has elevated because of the enlargement of the person group past the console generations As a result of this modification within the enterprise mannequin, in the course of the PS4 technology we had been capable of considerably improve the earnings on this sector, due to the fast digitization. and enlargement of community providers.”

Hayakawa additionally says that he expects the PlayStation 5 to decelerate when it comes to gross sales sooner or later, however as an alternative goals to get extra energetic gamers over an extended time frame (which explains Sony’s heavy funding in stay providers this technology), which is able to. capable of generate increased earnings:

“As we enter the second half of the console cycle, we count on the variety of new PS5 models offered to step by step lower. Nevertheless, by sustaining and increasing the variety of energetic customers and rising buyer engagement, whereas on the similar time strengthening management of enterprise prices, we consider that we will for us to extend gross sales and earnings on the PS platform sooner or later.”

The assertion is considerably paying homage to what Phil Spencer stated a number of years in the past, when in reference to the marketing campaign to launch all Xbox video games for PC he made it clear that it was extra necessary to him Microsoft to achieve many gamers than to promote many consoles.

How do you see your self, is Sony’s CFO proper, or ought to he nonetheless be promoting as many consoles as attainable which is extra necessary to them?

Thanks Wccftech