3 ms·
Keeping old games running on new hardware is ESSENTIAL for continued profits. Let's do the math. PSN had 123M subscriptions in 2023. Supposedly, 70% were essen
by hajile 2y ago
Keeping old games running on new hardware is ESSENTIAL for continued profits. Let's do the math.
PSN had 123M subscriptions in 2023. Supposedly, 70% were essential, 13% were extra, and 17% were premium. Let's get the highest (per month) and lowest (per year) costs for each tier to give us a PSN income range.
Essential $6.9B to $10.3B
Extra $2.2B to $2.9B
Premium $3.3B to $4.5B
That gives a range between $12.4B to $17.7B or an average of almost exactly $15B.
Sony Playstation generated $30B total revenue in 2023.
HALF of their revenue is from PSN. The big selling point of the Extra/Premium subscriptions is game access. If these users switched back down to Essential because the PSN game service doesn't work, that would represent a $2.5B to $3B drop in revenue or around 10%.
Sony supposedly makes around 30% of the asking price for new games. Making up $3B in lost revenue would require selling an extra $9B in games. Average video game prices in the US are $70 which means they'd have to sell almost 130M more games than they currently project they will sell.
There are around 62M PS5 consoles meaning they'd have to sell an average of 2 more AAA games than projected every single year. I simply don't think that is possible.