Sony plunged $10 billion after its PS5 sales cut. But a bigger issue is its near decade low games margin

Depends on the company. Nintendos sales are down because people are waiting for the Switch 2. Sony's are down because they haven't had an exclusive announced anyone cares about since Wolverine and people are moving to PC.

That's because Helldivers isn't a system seller. People bought PS5's for Spider-Man 2 but the crowd has come and gone. Sony needs some announcements or they will continue to bleed.

We will have to agree to disagree.

Sony stock has been shitty for quite sometime so nothing has changed.

spoken like a true fanboy.. Sony bought insomniac and has made a ton of money off of games like Spiderman with no complaints from you.. Microsoft breaks out the adult wallet and buys ABK and it's "b bu but!!1!"..

so all I'm seeing in the above response is a moving of the goalpost to justify why "the Xbox brand is dead" yet they have more active users and are generating more revenue than Nintendo.. i'm sorry but the facts don't support your narrative and Microsoft's strategy is clearly working for Xbox..

and at the end of the day, that's all you're going to do as Sony continues down the same path as Microsoft.. move the goalpost..

and honestly, the conversation is moot.. Sony's strategy has already changed.. we'll just have to wait and see who's correct:

The multi-billion dollar company with decades of experience in the gaming industry (Sony) or the console fanboy who desperately wants to maintain ammo for a non-existent console war (You)..

yep, "revenue doesn't matter" to the end-user.. but revenue is clearly a conversation to be had in financial discussions (ie this thread)..

you're just butthurt because your worship of "Revenue Wars" means that Nintendo is firmly in "3rd place" with a "losing strategy"..

noticed that too huh.. 😉

I wonder if Microsoft and Sony would consider making a Home console together? Before Microsoft made their first Home console they did try to team up with Nintendo and, Ninty told them no.

@BIOKILLER123: Microsoft and Sony made home computer based video game consoles together called the MSX and the MSX2. It is the platform metal gear ran on.

I am unsure many Western gamers are familiar with the MSX and MSX2 as they were available only in Japan. Not only that, they were released in an era (1980s) when PCs were like home consoles.

But you're not understanding that Microsoft bought their way into that. Thst isn't a strategy that will work for Sony.

Nintendo also has far larger profit margins then MS in the gaming segment.

Antwan clearly doesn't get it. "A losing strategy" where Nintendo has the most money when all the bills are paid... The knock against PlayStation right now is that they are making so much revenue but have less than a 6% margin. Their spending is out of control and segments that should be making 20% margins aren't. There is some gross mismanagement going on there. While at Xbox they are spending for all their revenue, and having to put the games from the developers they bought on rival platforms to recoup the money. While they miss all their growth and revenue targets... Congrats?

That’s the thing though. They don’t need to “recoup” the money. They still have the asset. And as a consumer we are not concerned about the profitability of Sony or MS.

You say that until the studios get shutdown and the games you love stop coming out. Healthy profit margins mean you keep getting what you enjoy. If games don’t perform well on the balance sheet, investments in future titles start to dry up. I really don’t understand why gamers don’t get this.

Most gamers don't know this or care about this. Most gamers don't even know what first party is, nor do they know who publishers are. They just buy fun games. They don't care about financial statements.

This thread is starting to Concern me a bit. lol :P

For me I want them to be rewarded when they make shit I like and punished when they make trash, so hopefully we will get more of what I like.

Well said!

All I care about are games and gaming with friends. I don't care about rewards, bonuses, profits, revenue. I worry about that stuff at home and at work. PS and Xbox aren't going anywhere (nor is Nintendo), so all good here.

Remember Silent, this is SW. I am just fuckin' with ya.

Just glad I can play any Sony game on my Steam Deck soon. 😘

Permanently coping🤭And i am glad to know that you can't wait to play Sony titles, wish you thought the same about your xbox games. But since they're made for the $1 renting service, you know damn well that their quality is far behind sony's, and that's why you're glad to see one Sony title to come out on pc per year😅😅😅

Good call!

@kuu2: Multiplatform for the win

Nintendo has a "losing strategy" according to your logic; not mine..

according to your "Revenue Wars" nonsense, Nintendo is 3rd place.. according to your logic, consumers are voting with thier wallets and they simply prefer PlayStation and Xbox.. 🤷‍♂️

i understand just fine.. what you don't understand is that it doesn't matter.. the end result is that Xbox is doing better than ever before.. Microsoft invested heavily into gaming and now their gaming division is generating more money than Windows..

and i personally don't care who's making more money.. i was just demonstrating that you can't claim "Xbox is dead" when they have more active users and are generating more revenue than Nintendo..

Oh yeah, I forgot about that. Thanks.

Generating more revenue and generating more profits are not the same thing. There's a reason Microsoft hasn't posted their profit margins for their gaming divisions and that's because they are probably not very good. Buying up half the industry and praising their revenue is irrelevant. Most companies would be bankrupt if they attempted what Microsoft has done but they are a two trillion dollar company off their other businesses so its a non issue to them.

They have a loss leading strategy that neither Sony nor Nintendo could copy.

no one said they were.. but when these companies are compared in financial reports, revenue is typically the comparison point..

so the result is still the same: Xbox has more active users than both PlayStation and Nintendo.. Xbox generates more revenue than Nintendo.. plain facts that prove Xbox's strategy is working for them..

another fact is that PlayStation is going in the same direction.. Sony's strategy has already changed (per Jim Ryan), they changed it because the "old way" is no longer sustainable (per Shawn Layden), and the future of PlayStation is console, PC, mobile, and cloud (per the CEO)..

"console, PC, mobile, and cloud".. now, who's strategy does that sound like?.. 🤔😏

dude, you're still trying to talk in hypotheticals when this is already happening.. either accept it or go build that PC..

More active users because they bought up half the industry and put them on a subscription service 🤣.

Sony would need to buy at least two major publishers to have the same output now. Again Somy will force themselves from 1st place platform holder to 3rd place publisher if they focused on the Day 1 strategy that lems are so desperate for them to do.

I'll wait to play them all on the MS X-Deck coming soon. ;o

lol :P

Xbox has more active users because they have a relatively seamless ecosystem across consoles, PC, cloud, and mobile.. a strategy that Sony is aspiring to follow:

"it will be ubiquitous. Wherever there is computing, users will be able to play their favorite games, seamlessly. Gamers will be able to find a place to play in different spaces." - Kenichiro Yoshida, Sony CEO

and

"multi-platform continues to be the way forward" - Hiroki Totoki, PlayStation Chairman

don't be mad at the messenger.. this is all coming from Sony.. and Day One on PC is already here since they are focusing on live service games with no major singleplayer release until sometime in 2025~2026 (and alot can change between now and then)..

so, again, either accept it or build that PC.. PlayStation will be fine either way.. 🤷‍♂️

@ghostofgolden: most of the games coming out of AAA studios are shitty nowadays, while indies are hitting it out of the park. I mean, look at all the big studios releasing remakes and remasters. Mean while, its the indies that are making games like palworld, helldivers 2, lies of p, etc etc.