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Sony FY22Q2 Earning Reports:

Mibu no ookami

Demoted Member® Pro™
Doesn’t seem like the ps plus overhaul really did anything for their numbers. It fell 2m actually…i don’t see sony continuing to highly invest in that service like they have been
I have a hunch, could be completely wrong, that they planned on bundling Crunchyroll with PS+ Premium but held back because of the Activision acquisition.

I think things will settle down for Sony once the acquisition has finalized and Sony does their own round of M&A, but they're not actively going to do anything anti-competitive or that could be pointed to as anti competitive.
 
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PS5 still losing further ground against PS4 and that won't chance until the March quarter in 2023.




What about the Playstation Plus numbers? Don't the include the migrated PS Now users now?
That seems very low.
 

Imtjnotu

Member
still have yet to see one on a shelf anywhere. relying on directs and having a crap manufacturing line is killing the gaming industry the last two years.

hope things pick up for them and MS this coming year. check back in q2
 

DenchDeckard

Moderated wildly
My name ain't vivftp McSonyFace, friend. I don't know the inner workings of their business. I can only by the scraps of info available to us.
So how can you be adamant that they are making a profit on the disk unit, when there hasn't been a comment for over a year.

Hopefully someone asks the question today and we get a clearer understanding on how software is selling at 70 dollars too. I feel like we haven't had any info on ps5 software sales. I would like to know how it stacks up vs ps4.
 

yurinka

Member
Is that their target? Still 18 million left until March 2023?

Why do you think it's unlikely? Do you think the demand is not there, or you think they can't make enough 18m units until March 2023?

If you ask me, I think they can make 18 million units in 6 months. The way they would do it is by shipping both PS5 models with 7nm and 6nm APUs. Keeping the old model and its production supply chain while creating a new production chain for the 6nm product.
Sony said in the call that they are getting enough chips and plan to exceed the 18M target for this FY. For the next FY they have a 23M target.

vgchartz only has them at 24.55M PS5s. I don't know who to believe anymore.
A few minutes ago was 24.53M
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And a few minutes before that they had 24.46M:
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Since Sony updated their numbers they are slowly correcting their number.
 
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vivftp

Member
So how can you be adamant that they are making a profit on the disk unit, when there hasn't been a comment for over a year.

Hopefully someone asks the question today and we get a clearer understanding on how software is selling at 70 dollars too. I feel like we haven't had any info on ps5 software sales. I would like to know how it stacks up vs ps4.

How do you take the following statement and twist that to claim that I'm adamant that they're currently making a profit on the disc unit?:

"We have no way of knowing whether the PS5 after the price increase might still be profitable with the disc model. Unless they outright say it, we probably won't know until the next quarterly report. Where you're pulling 100 to 200 dollars a box from though, I have no idea."
 

DenchDeckard

Moderated wildly
How do you take the following statement and twist that to claim that I'm adamant that they're currently making a profit on the disc unit?:

"We have no way of knowing whether the PS5 after the price increase might still be profitable with the disc model. Unless they outright say it, we probably won't know until the next quarterly report. Where you're pulling 100 to 200 dollars a box from though, I have no idea."

Honestly didn't spot that comment, just waking up. My bad. You're right there. Hopefully someone asks the question today.
 

vivftp

Member
Sony said in the call that they are getting enough chips and plan to exceed the 18M target for this FY. For the next FY they have a 23M target.

Based on the previously cited 18 million figure, they'd have to produce precisely 23 million units to surpass the PS4 sales curve next FY. If they're exceeding the 18 million figure this FY then that would further push them past the PS4.

I wonder if they chose to speak up in response to Tom Hendersons rumor. I figured we wouldn't get anything official from them on the next FY's projections until the end of this FY.
 

Mibu no ookami

Demoted Member® Pro™
PS+ numbers should be down. Value has only decreased in the last 6 months. For PS4 owners, can't imagine there is much value there at all.
 

yurinka

Member
Doesn’t seem like the ps plus overhaul really did anything for their numbers. It fell 2m actually…i don’t see sony continuing to highly invest in that service like they have been
It's weird, I thought they were going to skyrocket the number of subs but doesn't seem to be the case. What they increased but not much is the related revenue, since some players may have migrated to higher tiers:

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image.png
 
What do you mean, you believe the console manufacturers lol

VGchartz are extremely rough estimates
VGchartz are sell through (sold to consumers) estimates as of October 15, Official Shipments (sold to Retailers) are 25.00 million as of 30 September. They line up quite well since there is always going to be more Shipments than sell through due to consoles being in transit or on store shelves.
 

reksveks

Member
Sony said in the call that they are getting enough chips and plan to exceed the 18M target for this FY. For the next FY they have a 23M target.

I wonder if they chose to speak up in response to Tom Hendersons rumor. I figured we wouldn't get anything official from them on the next FY's projections until the end of this FY.

They had two questions around the unit targets and didn't give a new number for either year. Think the questions came cause of the improved production.
 
Very excited to dig through all this. I stayed up all night cause I have a really early work day and didn't want to fall asleep. So. Grabbing an apple, two cold bottles of water, and about to head out!
 

yurinka

Member
They had two questions around the unit targets and didn't give a new number for either year. Think the questions came cause of the improved production.
They said to be confident to exceed their 18M target for this fiscal year and mentioned to have a 23M target for the next one (FY2029), which also mentioned that PS5 will outsell PS4 launch aligned during FY2023.
 
I believe I also saw that Sony had actually produced 6.5 million PS5's for this quarter. So the 3.3 million figure is just what they chose to ship. I'm guessing there's a metric buttload of God of War and Call of Duty bundles out there that they held back those extra 3.2 million units for.
So unlike last year they are stockpiling units for the holiday quarter. Last years holiday was 3.9 million but this year I think 8 million is doable maybe even 8.5 million.
 
So their first party sales are again down YoY. But I am quite surprised PS+ sub are also down YoY. I think it's the first time since the start of the service?

What about their aggressive cross gen + PC strategy + new gamepass services? When are we going to see that pay off?
 

Heisenberg007

Gold Journalism
And also the chart shows that Sony factored the acquisition of Bungie in coming up with the operating income. I think that's the bigger factor in the small profit margin. The revenue actually increased by 12%.
Yep, that's because Sony/PS has been investing aggressively into the gaming divisions: acquisitions (Bungie and Haven) and their operating costs, games with even bigger budgets, more partnerships, more publishing agreements, PS+ revamp content acquisition, new studios (Malaysia and VASG), organic growth (SSM's 2nd team, ND's 3rd team), etc.

All of that leads to higher operating expenses, but that's good news for PS gamers. They are still making a profit, and they are increasing revenue QoQ. But they are reinvesting most of it -- while staying in green -- to bring more, bigger, and better games.
 

jm89

Member
Vgchartz is guess estimate.
One thing that has surprised me about vgchartz recently is there adjustments to their guessesb when real data comes out isn't as crazy as it use to be in the past.

I don't follow vgchartz that closely so might be wrong in that, just anecdote on what I've seen.
 
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yurinka

Member
Why would it skyrocket? PS+ tier system was mainly designed for the existing users anyway.
Because it has hundreds of games including a lot of great ones and now most of them (all except the streamed PS3 ones) are available worldwide for download unlike before, because PS Now was limited to a dozen countries or so and now PS Plus Extra or Deluxe are available worldwide (or almost).

In addition to this, the PS Plus engagament/subscription rate is higher on PS5. So as they keep selling PS5 it should go up. But well, due to chip shortages that wasn't possible. If this quarter they manage to sell a good amount of consoles I assume we'll see a nice bump.
 
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feynoob

Banned
Because it has hundreds of games including a lot of great ones and now most of them (all except the streamed PS3 ones) are available worldwide unlike before.
It won't, without marketing.

Gamepass took 4 years to reach where it is now. And that is with heavy advertisement and 1$ promotional.
 

yurinka

Member
It won't, without marketing.

Gamepass took 4 years to reach where it is now. And that is with heavy advertisement and 1$ promotional.
Well, after 12 years PS Plus has now almost 50M, around half of the PSN MAU. Maybe anybody interested on a sub and money to pay it already got it.
 

feynoob

Banned
Well, after 12 years PS Plus has now almost 50M, around half of the PSN MAU. Maybe anybody interested on a sub and money to pay it already got it.
Look at psnow.

Sony is really bad, when it comes to marketing services like these.

Also, Ps+ is mandatory for MP games. That is why numbers are high.
 

yurinka

Member
The PS5 disc edition was sold at a profit 1 year ago.

Sony Group raised the price of their electronics earlier in the year, so PlayStation may have held on a few months longer which is why they were more relatively hard hit in this particular quarter. They didn't raise the price until this quarter was 2/3rd over, after all. For all we know the PS5 disc model could be profitable under the new pricing scheme.
Since then the prices of the components, shipments and the dollar skyrocketed so maybe went back to be sold at a loss, party compensated with the $50 increase.

Sony is really bad, when it comes to marketing services like these.

Also, Ps+ is mandatory for MP games. That is why numbers are high.
Sony are the most successful in game subscriptions for consoles. MP is free for F2P games and a handful other games. According to a Sony poll the top reason to subscribe to PS Plus (before the merge with PS Now) were the games included in the sub.
 
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I think sony overestimated the sub+game model, they probably didn’t have to really go that far into it. I guess its good in case they eventually need to pivot, i also think its important to at least “try” to improve their service offerings.

But i dont think people are gonna want to rush out to sub for gaming services, its another monthly bill for a lot of people. Too many people subsist on 100% F2P games at this point. Thats where the growth is going to happen on F2P, not subs.

Sony needs their own very good and successful service games to grow revenue. Thats what it comes down to. F2P, PC and Console to generate as much mtx as possible, and mobile.

Console, and especially single player games are not a valid growth sector
 
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pasterpl

Member
https://finance.yahoo.com/news/sony...kXPkgY6mNGEqMIXbNYTdZwEO6Fwha0v8fEw8XUMjufrcE

Sony trimmed its full-year profit forecast for the games business by 12% to 225 billion yen citing lower software sales from third-party developers and the impact of dollar-denominated costs.

Sony's shares have fallen by almost a third so far this year as investors fret about the strength of the games business amid competition from Xbox maker Microsoft Corp and after a fading boost from stuck-at-home consumers during the COVID-19 pandemic.

The gaming business recorded a 49% fall in second quarter profit to 42.1 billion yen after booking higher costs from game development and acquisitions.
It sold 3.3 million units of its PlayStation 5 (PS5) console in the second quarter, equal to the year ago sales. The group has hiked the price of its console in markets including Europe and Japan as the dollar strengthens.
 

feynoob

Banned
Sony are the most successful in game subscriptions for consoles. MP is free for F2P games and a handful other games. According to a Sony poll the top reason to subscribe to PS Plus (before the merge with PS Now) were the games included in the sub.
If those games were the reason why ps+ was successful, then psnow wouldn't have been at 3m.

Just admit that Sony is bad at marketing the service.

Fifa, gtav, COd needs Ps+. You play can't their MP play without it.
 
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Goalus

Member
And also the chart shows that Sony factored the acquisition of Bungie in coming up with the operating income. I think that's the bigger factor in the small profit margin. The revenue actually increased by 12%.
Strange.
Acquisition costs are not operating loss.

Edit: I read it wrong, forget it.
 
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