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Sony Q4 FY2021 (Jan-Mar) Results - PS5: 2.0m (LTD: 19.3m), PS4: 116.9m (+0.1m) / 47.4m PS+ Subscribers / FY2022 forecast : 18m

I have read that SIE will increase in $400M the development budget for first-party this FY, is that true?

Exchange rate today:

¥1.000,00 - U$7,68

2022 - ¥2739,80B - U$21,05B

2023 - ¥3600,00B - U$28,12B

Not a huge growth, dolar wise.

Over $7B growht YOY is massive. Thats pretty much the revenue grow MS gaming division will have with AKB adquisition.
 

I wonder where he got the conversion rates from. I used these:

5cE6UNY.png
 
I wonder where he got the conversion rates from. I used these:

5cE6UNY.png
There is two sets of conversion rates in the documents, average ones for the period and period end.

I use the average one as well. I think I have led you down the wrong path on the other forum. I snipped and shared the wrong one, too early in the morning.
 
I have read that SIE will increase in $400M the development budget for first-party this FY, is that true?



Over $7B growht YOY is massive. Thats pretty much the revenue grow MS gaming division will have with AKB adquisition.
Did Sony stop booking 100% of digital third party transactions, or is their revenue still cooked?
 
It's criminal how hard Sony murdered the PS4.


PS/Xbox Consoles dont have long legs anymore, and it's by design apparently. Rest assured it must be for profit reasons.

While fanboys on the internet may be desperate to pump those old console numbers, Sony and MS care about something far more important, $ of profit in their pockets. It's clearly not good business to continue producing and selling older consoles, or else they would do it.
 
It's criminal how hard Sony murdered the PS4.
The pandemic had a lot to contribute to this.

Their plan was simple, make a lot of people migrate to PS5 as PS5 it's a way better PS4 and those same people likely would sell their PS4 to other people, increasing the userbase without the need to produce new consoles. In a normal situation, that was a very solid plan. But pandemic happened, slowed down PS5 production and there's no room to produce more PS4 at this stage.
 
With Xbox and Steam fighting them for the same silicon it would be hard for PlayStation to just up and double their orders. The fact that any of them can get chip's with components sourced from China is also strange and disappointing considering legislation that the U.S. Congress passed. Nintendo is in the same boat but they are the only company on record in saying they don't get their parts from forced labor Uyghurs in Xinjiang or anywhere those workers are bussed to.
 
That would be an impressive revenue increase. I do wonder if that comes from a proper forecast or forced to hedge the hit Operational Income will have.
 
So, almost 470 million software sold on PS5 in less than 18 months. That's awesome.

EDIT : or that's with PS4 combined? If it is, still awesome
 
The pandemic had a lot to contribute to this.

Their plan was simple, make a lot of people migrate to PS5 as PS5 it's a way better PS4 and those same people likely would sell their PS4 to other people, increasing the userbase without the need to produce new consoles. In a normal situation, that was a very solid plan. But pandemic happened, slowed down PS5 production and there's no room to produce more PS4 at this stage.
Yeah, agreed. I'm not sure if the release of PS4 versions of certain key first-party games shows was originally planned or not (given the time to create those ports, but also taking their original stance of "thinking in generations" into account), but those have softened the blow a bit at least. I don't know if there's much more they could've done. Manufacturing problems and chip shortages are a bitch.
 
They are quite way off from current Nintendo margins. I mean as both have consoles in different parts of their lifecycle I could see Sony making more money in some years but on average I think Nintendo stays ahead. Also with booming Chinese market Tencent can absolutely stay on top.

Margins yes, and they will likely never approach such margins as Playstation sells its hardware at far tighter margins than Nintendo, however Playstation revenue is going to approach around 440B Y, resulting in larger profits even on smaller margin. Remains to be seen what their margin will be at these levels of revenue, but I am pretty confident on the revenue numbers at least.

Tencent: domestic game growth is 6%, whereas international game growth in 31%. I'm not sure where to find Tencent's gaming division profit numbers (minus their social media part), but I am confident Playstation will be bigger than Tencent next FY in revenue.

I applied the corresponding exchange rates per quarter and arrived at $23.87B in revenue for FY2021. How did you arrive at close to $35B? Maybe I'm missing something.

The Yen has massively depreciated in recent months, moreso than any other major currency. I was doing some mental math of what the dollar equivalent would be if the yen had held its value, around $33B.

Exchange rate today:

¥1.000,00 - U$7,68

2022 - ¥2739,80B - U$21,05B

2023 - ¥3600,00B - U$28,12B

Not a huge growth, dolar wise.

$7-8B in growth in a single FY would be the largest YoY growth in the history of gaming from what I've seen.
Furthermore, one must note the depreciation of the yen. If we were holding it at last year levels, Playstation is around $33B next FY.

Or we can simply use growth metrics, which is a monumental 34%.
 
2m is quite better than I expected, almost the same as PS4 at the time, which is is impressive considering the whole shortage situation.
 
Interesting, "Add-on content" sales were down YoY (but still well ahead of FY ending March 2020).
To understand the importance of DLCs for SIE bottom line consider that in the last 3 fiscal years such revenue was bigger than physical software and digital software sales combined.
Basically DLCs accounted for about 55%-60% of the total game software sales in the last 3 years.

You can understand why Sony is investing heavily in GaaS.
 
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Something's missing. 🤔
Cold as ice.

Interesting, "Add-on content" sales were down YoY (but still well ahead of FY ending March 2020).
To understand the importance of DLCs for SIE bottom line consider that in the last 3 fiscal years such revenue was bigger than physical software and digital software sales combined.
Basically DLCs accounted for about 55%-60% of the total game software sales in the last 3 years.

You can understand why Sony is investing heavily in GaaS.
Yes. It makes you wonder if Nintendo will follow suit with their launch line-up for Drake, and beyond.
 
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I think that's when Sony started combining their PSP + PSV sales figures.
I mean yeah but obviously Sony themselves has data just for PSP too so considering how usually companies want to present biggest possible figure for any sales it's bit weird they don't use it here.
 
Margins yes, and they will likely never approach such margins as Playstation sells its hardware at far tighter margins than Nintendo, however Playstation revenue is going to approach around 440B Y, resulting in larger profits even on smaller margin. Remains to be seen what their margin will be at these levels of revenue, but I am pretty confident on the revenue numbers at least.
A direct revenue comparison between G&NS and Nintendo is tough because Sony doesn't clarify how exactly they account 3rd party revenue. Given the disparity I would guess it's likely they account 100% of all digital revenue but we don't know for sure. This would also help some way in explaining the wide disparity in profit (this time in Nintendo's favor).

Nintendo's hardware margins are slim, they just have a policy of not taking a loss per unit. What really drives the overall margin for Nintendo is the massive amount of 1st party software sales at held high MSRPs. And even here the advantages are somewhat mitigated on packaged software due to much higher component and manufacturing costs on Nintendo's end versus PlayStation or Xbox. The real future growth area for them will be in MTX (both DLC and Sub/RR) which has extraordinary potential depending on their roadmap.
 
A direct revenue comparison between G&NS and Nintendo is tough because Sony doesn't clarify how exactly they account 3rd party revenue. Given the disparity I would guess it's likely they account 100% of all digital revenue but we don't know for sure. This would also help some way in explaining the wide disparity in profit (this time in Nintendo's favor).
Sony does clarify, they count the entirety of the third party digital sale. From their supplementary info:
2 Physical Software is revenue from first party game software for PlayStation® consoles sold on discs to retailers and royalties from third party software sold on discs.
3 Digital Software is revenue from full game downloads of both first and third party titles sold via the PlayStation™Store
 
A direct revenue comparison between G&NS and Nintendo is tough because Sony doesn't clarify how exactly they account 3rd party revenue. Given the disparity I would guess it's likely they account 100% of all digital revenue but we don't know for sure. This would also help some way in explaining the wide disparity in profit (this time in Nintendo's favor).

Nintendo's hardware margins are slim, they just have a policy of not taking a loss per unit. What really drives the overall margin for Nintendo is the massive amount of 1st party software sales at held high MSRPs. And even here the advantages are somewhat mitigated on packaged software due to much higher component and manufacturing costs on Nintendo's end versus PlayStation or Xbox. The real future growth area for them will be in MTX (both DLC and Sub/RR) which has extraordinary potential depending on their roadmap.

Sony does clarify, they count the entirety of the third party digital sale. From their supplementary info:

I'll look into this.

From what Mega has commented, physical sales revenue is based on commission. It may not be stated explicitly, but the norm for digital platforms from the filings I've read, such as Apple, is to have revenue as commission.
 
I'll look into this.

From what Mega has commented, physical sales revenue is based on commission. It may not be stated explicitly, but the norm for digital platforms from the filings I've read, such as Apple, is to have revenue as commission.
I mean it's I think it's pretty clear from note 3 that the digital revenue is the entire sale not just the royalty for SIE. I brought up the physical note to show that/how they'd mention a difference.
 
I mean it's I think it's pretty clear from note 3 that the digital revenue is the entire sale not just the royalty for SIE. I brought up the physical note to show that/how they'd mention a difference.
If I recall correctly, Matt over on Era has mentioned in the past that Xbox/Sony count the $60/$70 as revenue.

Found it
 
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I’m talking about next fiscal year. And no Nintendo is not being conservative with a 21 million forecast. That is a huge amount and the idea they’d be able to sell 26 million this coming FY is completely outside the realm of possibility.

They could totally sell 26 million in units if they are able to produce and ship that many. It’s more on the possible side than the impossible side. It would would be predicated on a new model releasing during the FY, of course.

It’s only 1 million more than they expected to ship this last FY (which was reduced because they couldn’t make that many, not that demand was less than they thought)
 
It's clearly not good business to continue producing and selling older consoles, or else they would do it.
None of these companies are so failureproof that it seems wise to say "Because they did X, X must be the best move." I have to think that in a different universe Sony would be happier having shipped more than 13m consoles, even if some of them were PS4s.
 
I mean it's I think it's pretty clear from note 3 that the digital revenue is the entire sale not just the royalty for SIE. I brought up the physical note to show that/how they'd mention a difference.
Not necessarily, as accounting in the digital space has revenue as the commission as default from what I've seen. It should be easy to spot what is being accounted either way, as the difference between 30% and 100% counted as revenue is 3x.
 
Not necessarily, as accounting in the digital space has revenue as the commission as default from what I've seen. It should be easy to spot what is being accounted either way, as the difference between 30% and 100% counted as revenue is 3x.
This isnt something new, Sony has been doing it since last year I believe. And I'm not sure how you could interpret that footnote to mean anything else than yes, they are essentially triple booking their digital revenue.
 
"Sales data on PS Vita are not disclosed"? C'mon even Nintendo told us about the paltry sales of the Wii U and that must have been excruciating for them. 😆

Nintendo is proud for the floppa lol. THe flopper the console is, the more they can reuse those flop platform software as remastered in the future kek.

Where is my VB remastered again?
 
It still annoys me that Sony combines the software sales of PS4 and PS5
Show some damn courage Sony and give us all the numbers!
 
The news story here isn't PS5 sales numbers.

Playstation is nearing $35B a year in revenue (from an outdated exchange rate as the usd/yen rate has collapsed recently). They're predicting a 34% growth, $8B in a year in growth. I'll make a more detailed post later but I expected this and it won't be long before Playstation is making $40B a year. They'll be working on bringing their margin up as well, won't be long before they're both the largest gaming company in the world and the most profitable. I don't see Tencent being able to keep up with Playstation.

This is without taking acquisitions into account. For instance, a SE acquisition will add around $4B in revenue to that figure. Bungie could offer a potential 1B in revenue down the line (right estimates are 300-500M)

Napkin estimates on where the growth is coming from:
  • 1-2B from PSVR (Oculus sells around 7-10M and generates 2B in rev, with a expected lower price point)
  • 1-2B from PS+ Premium
  • 1-2B from 1st party growth
  • 2-3B from hardware/ecosystem growth

I think PlayStation ever increasing revenue is a bit overrated. They're just consolidating GameStop, Best Buy, Amazon etc, as they essentially become the sole seller of PlayStation software.
 
It still annoys me that Sony combines the software sales of PS4 and PS5
Show some damn courage Sony and give us all the numbers!

It is kinda sad that MS and SIE has been trying to blur sales number as much as they can nowadays.

Finger crossed that Nintendo will do the same thing here soon as we always know they love being late to the trend.T_T

(Where is our digital number lol)
 
Something I've been trying to find and maybe someone smarter can help me: When you pay that $10 upgrade fee to get the PS5 version of a PS4 game you bought does that count as an additional software sale or a DLC sale?
 
It's at 117M now. This thread title means that too. Gematsu for some reason thinks it's at 117.2M, but they're wrong.
I'd bet it's rounding errors thanks to the various slightly different ways Sony reports things, and since they report to only the nearest hundred thousand the difference can look pretty big. If you add up all the announced quarterly numbers, it's 117.2. If you add up all the announced yearly numbers, it's 117.1. But they still list the total as "More than 117" whereas a few days ago it was "More than 116.9".
 
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I'd bet it's rounding errors thanks to the various slightly different ways Sony reports things, and since they report to only the nearest hundred thousand allows the difference look pretty big. If you add up all the announced quarterly numbers, it's 117.2. If you add up all the announced yearly numbers, it's 117.1. But they still list the total as "More than 117" whereas a few days ago it was "More than 116.9".
116.9 was up until December 31st 2021.
 
@Lelouch0612 could you edit the title of the thread to reflect the actual reported number of PS4 which is 117.1 going by their quarterly breakdown or 117.2 going by their stated number in their report?
 
Looking at the files in their IR library, 117.0m is the LTD, already considerings adjustments in later reports.

I don't saw 117.2m in any material related to the last earnings results, so this is not "stated" by Sony
 
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Not necessarily, as accounting in the digital space has revenue as the commission as default from what I've seen. It should be easy to spot what is being accounted either way, as the difference between 30% and 100% counted as revenue is 3x.
Look at this graph from earlier up the thread:
FSbpxYqWYAE9nX5

In FY 2020, SIE reported the split between digital and physical was ~51%. But according to this graph, Digital Software made up 78% of all software sales excluding Add-on Content for that FY.
Unless SIE has ~25% of all its software sales revenue coming from the indie space (somehow becoming the 2nd-largest indie game platform in FY2020 when no one was paying attention) and indie devs are lying to us about how bad sales are on PS platforms, the numbers don't add up and never will if one continues under the assumption that they're only adding royalties on digital software to their revenue line.
 
Look at this graph from earlier up the thread:
FSbpxYqWYAE9nX5

In FY 2020, SIE reported the split between digital and physical was ~51%. But according to this graph, Digital Software made up 78% of all software sales excluding Add-on Content for that FY.
Unless SIE has ~25% of all its software sales revenue coming from the indie space (somehow becoming the 2nd-largest indie game platform in FY2020 when no one was paying attention) and indie devs are lying to us about how bad sales are on PS platforms, the numbers don't add up and never will if one continues under the assumption that they're only adding royalties on digital software to their revenue line.

This is wrong.

ZHugeX talks about unit sales. The graph shows revenue.
 
This is wrong.

ZHugeX talks about unit sales. The graph shows revenue.
Yeah, that's the problem.
If unit sales are roughly 50-50 AND they're counting only SIE's royalties on both digital and retail as you suggest, that would mean, from the numbers we have, digital sales are somehow worth double or more what retail sales are every single quarter. How do you explain that, when the majority of retail sales are still at full price and PS Store also has regularly-scheduled sale pricing?

EDIT: Or do you think they're making $16 on a $60 game on PS Store and then consistently taking $8 or less for retail copies?
 
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