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 PlayStation 4 May Struggle With Profitability

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Usman
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PostSubject: PlayStation 4 May Struggle With Profitability   PlayStation 4 May Struggle With Profitability EmptyFri Aug 16, 2013 2:59 pm

Sony may be winning the race for positive buzz and consumer goodwill over its rival Microsoft in the months leading to the release of PS4 and Xbox One, but interesting choices the company made in recent years may hinder the company from making heavy profits once the console’s out the door.

As we reported last week, Sony turned a very modest profit in the last fiscal quarter. However, Bloomberg reports that the U.S. dollar’s rise against the Japanese yen may end up hurting Sony’s PlayStation division’s ability to deliver a strong performance on the balance sheet.

“Those currency related losses [from the quarterly report] are poised to deepen as analysts project a further 10 percent rise in the dollar by the end of Sony’s year in March, based on 74 analysts’ estimates compiled by Bloomberg,” the news agency notes, stating later that, “While the weaker yen will lift the value of sales abroad for the new PlayStation 4, margins will be crimped as parts and production are paid for in dollars.”

Sony originally “agreed to pay suppliers in U.S. currency to reduce costs as it made plans to challenge Microsoft in the U.S. video-market.” This was a move designed “to shield its PlayStation game unit from a strengthening yen,” but now that the dollar is on the rise, the move is “backfiring.”

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Hopefully it's not too big of a profitable issue.
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PostSubject: Re: PlayStation 4 May Struggle With Profitability   PlayStation 4 May Struggle With Profitability EmptyFri Aug 16, 2013 6:24 pm

That's probably why they're charging for online.

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PostSubject: Re: PlayStation 4 May Struggle With Profitability   PlayStation 4 May Struggle With Profitability EmptyFri Aug 16, 2013 6:45 pm

I'm not sure if I'm correct here or not.. but since we'll need PS Plus in order to play online with a charging fee of $5/month, we'll be able to access other features that PS Plus includes. Like discounts, free items, etc.
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PostSubject: Re: PlayStation 4 May Struggle With Profitability   PlayStation 4 May Struggle With Profitability EmptyFri Aug 16, 2013 6:48 pm

Yeah, but they're still requiring, just working backwards to make it seem nice. Instead of saying "Oh, if you upgrade to membership, you can play games online and have all these nice things!" they're saying "Look at all these nice things you CAN have.... oh btw, now we're going to make you have it, at least you'll get all these nice things though!" it's sneaky but it works.

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PostSubject: Re: PlayStation 4 May Struggle With Profitability   PlayStation 4 May Struggle With Profitability EmptyFri Aug 16, 2013 6:51 pm

^ uhh..what? You got all the cool shit from PSN+ on the PS3 as well.  Free games, discounts etc, the only difference was you didnt have to pay to play online. The only exception to that are the free to play games like Planetside 2, you wont be required to have PSN+.
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PostSubject: Re: PlayStation 4 May Struggle With Profitability   PlayStation 4 May Struggle With Profitability EmptyFri Aug 16, 2013 6:53 pm

I know that, I'm saying that if they're going to MAKE you pay for it anyway, it wasn't much a bonus to begin with. It's like if Xbox were to offer live but let you play games online for free. Then later on said "Oh you guys now need to have Live to play online, but it's ok cause with Live you can have all this other cool shit". It's the same thing.

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PostSubject: Re: PlayStation 4 May Struggle With Profitability   PlayStation 4 May Struggle With Profitability EmptySat Aug 17, 2013 6:10 am

It was only a matter of time before they charged to play online anyway.
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