Japanese electronics firm Sony has highlighted the strength of user engagement with its gaming platform as the PlayStation 5 console sales taper off and businesses in the industry search for recurring revenue stream.
Thanks in part to add-on services and content like PlayStation Plus, PS5 owners are paying about 25% more than they did when the PS4 was in production.
"Our revenue base is durable and predictable because of this behaviour," Hideaki Nishino, a gaming executive, stated during a strategy conference.
Investors have expressed worry about the gaming sector's low profit margins, so Sony reorganised its management. Nishino will take over as CEO of the company's platform business group starting next month.
After just reaching its revised goal of 21 million units last year, the company forecasts reduced PS5 sales of 18 million units in the coming fiscal year.
The expense of creating well-known games and the slow development of the business are causing companies in the gaming sector to cancel initiatives and fire personnel.
Although Sony's game lineup for this year is limited, the live service title "Helldivers 2" has been a success, selling over 12 million copies since its February release.
According to Herman Hulst, who is set to take over as CEO of the studio business group, live service games—which provide constant, updated gameplay—are being concurrently developed for the PlayStation 5 and PC.
Sony is mostly recognised for its single-player games. The PC version of the 2020 original "Ghosts of Tsushima" was published this month.
(Source:www.reuters.com)
Thanks in part to add-on services and content like PlayStation Plus, PS5 owners are paying about 25% more than they did when the PS4 was in production.
"Our revenue base is durable and predictable because of this behaviour," Hideaki Nishino, a gaming executive, stated during a strategy conference.
Investors have expressed worry about the gaming sector's low profit margins, so Sony reorganised its management. Nishino will take over as CEO of the company's platform business group starting next month.
After just reaching its revised goal of 21 million units last year, the company forecasts reduced PS5 sales of 18 million units in the coming fiscal year.
The expense of creating well-known games and the slow development of the business are causing companies in the gaming sector to cancel initiatives and fire personnel.
Although Sony's game lineup for this year is limited, the live service title "Helldivers 2" has been a success, selling over 12 million copies since its February release.
According to Herman Hulst, who is set to take over as CEO of the studio business group, live service games—which provide constant, updated gameplay—are being concurrently developed for the PlayStation 5 and PC.
Sony is mostly recognised for its single-player games. The PC version of the 2020 original "Ghosts of Tsushima" was published this month.
(Source:www.reuters.com)