Sony Hopes to Raise Profit Forecast for the PlayStation Division, Hopes PS4 Profits to Reach PS2 Levels - News
by William D'Angelo , posted on 25 September 2014 / 8,709 Views
Sony Computer Entertainment CEO Andrew House has stated that he hopes to raise the profit forecast for the fiscal year. The gaming division is the only electronic business that looks to have upside in the near future. Sony has taken a big loss for its mobile division and the image sensors business is on the fence.
"We raised our profit prediction and I hope that's a trend we can continue, even within this fiscal year," House told Reuters in an interview. The PlayStation division accounts for 10 to 12 percent of Sony's revenue.
Sony has already increased its profit forecast for the PlayStation division this year and it appears Sony CEO Kazuo Hirai hopes PlayStation 4 profits can match that of the PlayStation 2. The PS2 earned sony more than $1 billion in annual profit.
"I do feel we have a higher opportunity to build a higher ARPU (average revenue per user) than with the PS3, and that should make a very strong profit contribution over the life-cycle," said House.
Through September 13 there have been 10.81 million PlayStation 4's sold worldwide. This is double the 5.41 million the Xbox One has sold and ahead of the 7.21 million Wii U's sold.
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A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. Outside, in the real world, he has a passion for the outdoors which includes everything from hiking to having received his B.A. in Environmental Studies. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.
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Great news
Awesome.
yeah sure lol
Keep the games coming!
Given how the market has changed, I'm not sure if that's even possible.
The PS2 had a huge casual following and you can see that by looking at its software sales. Home consoles this gen are basically dependent on core gamers.
Non-sense. Wont happen.
I see Sony becoming only the PlayStation brand in a couple years. It has literally been their only source of income as of late.
If anything they will become an smaller company. Insurance is their biggest money maker.
But with Sony's other's divisions the only part of Sony that can make money (not great money) is the playstation division.
I'll be really honest here. We'd be lucky to see another gaming system break 100 million but I highly doubt we'll see another run away success like DS or PS2. The market has changed, there are WAY more gaming options. A lot of really casual people that bought a PS2 and/or DS have moved on to mobile and a lot of core gamers that would be all over dedicated gaming consoles/handhelds have moved to PC.
This isn't to say the PS4 won't do well but a repeat of gen 6 and gen 7 isn't going to happen. There's a lot of other options out there now and gaming and technology has changed. While PS4 and 3DS are both front runners, don't expect PS2 and DS levels of sales. We shouldn't even expect sales numbers equivalent to Wii in its hay day. PS4's success this gen is definitely unchallenged but it's sales have already slowed greatly and in VGChartz own comparison, has already fallen behind what Wii was at in a similar time frame. In order to bring in PS2 numbers, they'd need to be pushing 20+ million a year (more like 25+ million) and as strong the launch was and as good as the pace and momentum is right now, I just don't see that happening.
Have you read it properly? They are not aiming PS2 sales number. They are aiming PS2 like "PROFIT" in PS4.
@daredevil: and you think, that without PS2-like sales, that they're going to hit PS2-like profits? On much higher dev costs? And, likely, much fewer titles being released than on PS2? Really? Pray tell how do you wager this will occur?
@ECM from the second last paragraph "I do feel we have a higher opportunity to build a higher ARPU (average revenue per user)" Less users needed if they're aiming for higher ARPU, the likes of PSN+ and better sales on psn vs people going to buy pre owned games can give them this higher profit.
@Ganoncrotch Thing is, even with PS+, they'd need a higher attach rate then what previous gen systems had to make up for a lower install base. Again, I don't see that happening.
The only way this could possibly happen is if their other cloud based services become a hit but in the way of consoles sales, software sales, and PS+ subscriptions, it's highly improbable. The install bases for every system this gen aren't going to get anywhere near the size of PS2 and DS, the software sales aren't going to reach the same heights of the previous gen, and I doubt we'll see any of the companies extra services/addons/whatever take off.
The fat is going to be trimmed and we're gonna get is better systems with better services aimed towards their userbase, not "potential" customers, which while it won't make any of the companies as much profit, it'll give us better products.
Breaking news: Sony wants to earn alot of money on the PS4
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