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Pachter: PS Plus needs 2-3 million subscribers for PSN to profit

Sunday, 1 August 2010 14:46 GMT By Joe Anderson

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Sony may see some profit from PlayStation Plus initially, but the company will need 2-3 million subscribers before it sees black from PSN as a whole, Wedbush Morgan analyst Michael Patcher has claimed.

Speaking on the latest episode of his Gamestrailers show Pach Attack, the analyst compared the service to Xbox Live, which he also described as a slow starter until new services such as Netflix were introduced.

“Sony is already spending the money on PlayStation Network, so layering on a new group of users paying it for a service will be profitable,” said Pachter.

“PlayStation Plus will take a while to get up to the same level as Xbox Live and I think you will see around 1 million subscribers early on, which amounts to around $50 million in profit.”

Pachter continued: “What this means is the PlayStation Network as a whole will not become profitable, as I’m guessing it costs Sony about a couple-of-hundred-million a year to maintain. What Sony will be hoping is the new service drives people to download more movies and games and therefore bring in more money.

“I think for Sony to make a profit on the PlayStation Network, it will need at least 2-3 million PlayStation Plus subscribers within the next two years.”

Sony has so far only announced Automatic Updates as an extra service for PlayStation Plus, although there have previously been rumours of Cross Game Chat becoming a feature of the service.

PlayStation Plus was released at the end of June.

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27 Comments

  1. humanfish

    I won’t be subscribing until there is a real reason to do so. There really is nothing, absolutely nothing worthing paying for at the moment.

    #1 5 years ago
  2. sg1974

    Have approaching 100 PSN friends, two have PSN+. PSN Fail.

    #2 5 years ago
  3. Razor

    Sony made such a stupid mistake by saying things like free multiplayer was a “right” and such, as it would have been so easy to shift multiplayer to the paid service without breaking a promise you never made.

    Sony should have just said “multiplayer currently remains free on PSN” for these last few years and just left it at that.

    I think Sony are going to find it hard to find a feature that gets people to pay for, and makes the distinction between PSN+ and the normal service.

    #3 5 years ago
  4. Joe Anderson

    @2 loads of my friends have PSN +, this week the offers changes again.

    I think this is what’s on offer this month:

    * PSN PS3: Zen Pinball
    * minis: Blast-Off, Alien Zombie Death
    * PSone: Medievil
    * Full Game Trial: inFamous, Mushroom Wars
    * Discounts: Zen Pinball Earth Defence Table – 20%, Warhawk Triple Combo Pack – 50%, Super Stardust HD – 20%, WipeOutHD Fury – 20%
    * Premium Game Elements: Motorstorm Pacific Rift: Adrenaline Pack
    * Push Demo: Flower, Pixel Junk Shooter
    * Themes: “SCEE produced: PlayStation Plus Dynamic Theme, Heavy Rain Crime Scene Theme
    2 x Heavy Rain Avatars (Bird and Butterfly)

    #4 5 years ago
  5. sg1974

    It doesnt help when one of the things you boast of in your introductory offer is free Fat Princess avatars. Yeah, that will get people opening their wallets by the hunderds of thousands.

    It also doesn’t help when you boast that people whove paid for it get a demo of K&L2 two days earlier than everyone who pays nothing. Wow, two days head start on a free demo. What an awesome benefit.

    Whoever came up with the design of PSN+ should be fired.

    #5 5 years ago
  6. sg1974

    @4 thats better I suppose.

    PSN+ subscribers who already have what’s on offer should get their money backon the original purchases.

    #6 5 years ago
  7. Gama_888

    @3
    are u mad?
    im guessing you have xbox live?

    I do not think we should have to pay to play ANY game online?

    im not entirely sure how an online service for a game works but i had always thought it was that the people who make the game, have the servers to run it. if that is true then im sure they make plenty of profit just from selling the game to host them for a few years.

    as for an online service like psn and xbox live well both companies are making prophets from console sales so there shouldn’t be a problem their either?

    i cant understand why anyone pays for xbox live tbh?

    #7 5 years ago
  8. Anthorne

    @7 its not hard to understand why people pay for xbox live. Its to play games online, what cant you understand about that.

    #8 5 years ago
  9. Crysis

    @7, both companies have made measly (if any) profits from their consoles, most comes from the software developed for the consoles, tho i do not know the % sony & ms take, also, it’s not so much the content people are after, it’s services, some people may already have this content, others do not care for this content, i have no idea what services would make me consider getting PSN+, but nothing has shifted me yet.. maybe unlimeted psone games after establishing a much larger catalogue? that would ALMOST do it for me, a PS2 emulator would be an instant sale to me, but that won’t happen, maybe 1 free movie download each month out of a smallish selection? free Hulu plaus mabe a good seller, though they would have to bring it to Europe & Australia first =\ any other good ideas floating around?

    #9 5 years ago
  10. Redh3lix

    Doesn’t help that our US cousins get a fuck load more content on PSN+. Not that ANY of the content is worth it. Fuck mini’s. Fuck PS1 classics. We want PS2 classics and further functionalty (party chat?) etc. Fuckety fuck btw.

    #10 5 years ago
  11. OlderGamer

    I think that Sony shot themselves in the foot by pitching this idea that Online Play was a gamers right and that it should be free.

    Online networks cost alot of cash to run. And the scale at which the PSN and XBL networks are at is off the chart. On the PS2 the amount of gamers playing online was very small % wise. And the scope of service and conetnt being offered was also small. Thus the overall expense to maintan was no where near what PSN is now.

    Gamers need to understand that. And in the end, Gold and PSN+ do not cost a lot of money, about 50/yr each. Less if you know where to look.

    And as far as Sony goes, you and I know that the only feature that will convert the masses to PSN+ is Online Gameing. Thus the foot shooting. The very thing they convinced their users should be free.

    #11 5 years ago
  12. Nozz

    As soon as cross game voice chat drops i’ll be getting PS+

    The only reason i haven’t got it yet is because i have most of the stuff on offer already.

    #12 5 years ago
  13. Crysis

    well for many people, including myself, the free online play was the biggest sales point for the ps3, it needed to be after that initial cost

    #13 5 years ago
  14. Lord Gremlin

    Right now, there is no reson to subscribe. But people who suggest that Sony need to make online gaming itself premium are wrong. This will kill their business. There are numerous ways to get people to subscribe with free basic online gaming. Imagine:
    PS Plus users earn 3x XP in MW3.
    PS Plus users may use any car in GT5 online even if they haven’t unlock it yet.
    PS Plus users can buy and run PS2 classics from store. when your subscription expire PS2 classics stop working. PS2 compatibility is premium.

    Hey, GT5 fans! Wanna pink Ferrari online? PS Plus exclusive.

    Also, remember that Sony is not Microsoft, Microsoft are fuckers, nuff said.

    #14 5 years ago
  15. Crysis

    @14, I AGREE WITH EXCLUSIVE INGAME CONTENT, BUT THE XP SUGGESTION IS JUST STUPID, NO OFFENCE, damn caps!!, meh i cbf rewriting

    #15 5 years ago
  16. NiceFellow

    He’s just guessing based on his estimate of the cost of keeping PSN going, which doesn’t seem to include revenue Sony might get from other sources to cover PSN, such as micro transactions on Home and revenue from the titles sold digitally via PSN.

    For all we – and he – know PSN is already profitable or breaking even and PSN Plus is just adding more on top.

    PSN Plus, while not appealing to me, I think makes sense for Sony right now. Having PSN free for online is necessary right now as a difference to Live particularly as Sony continues to play catch up in US/UK.

    No matter what they say now Sony can quietly change PSN Plus to cover online later if they want, or offer a two tier online.

    Free gets you basic online and friends, PSN Plus online gets you cross-game chat and other perks.

    #16 5 years ago
  17. Lord Gremlin

    @Crysis, there are actually people out there who will pay for triple XP in their favorite online game.

    #17 5 years ago
  18. ivycrew707

    I’m a plus subscriber, and its honestly not worth it……I still have to sign up for beta’s on separate sites which was one reason I really wanted to try it…..but once again Sony’s big down fall is advertising and promoting it….I have only 32 friends on my list, me and one other subscribing, but about 15 others had no idea what it even was

    #18 5 years ago
  19. DigitalEnemy

    The only way they are going to sell more subscriptions is simple – add features like cross game chat and other perks like auto sync trophies and maybe even PS2 emulation.

    Subscriptions would rocket if they implemented those 3 features.

    #19 5 years ago
  20. Joe Anderson

    @19 your right. I think Cross Game Chat is coming personally. I also think I weekly Kevin Butler show would swing it :)

    #20 5 years ago
  21. Robo_1

    I’ve always thought the fairest way to do it, would be to offer every gamer 4 free hours per week online, which would nicely cover casual online players like me.

    For unlimited online play time, Sony could charge a small 15 – 20 euro fee, which would significantly undercut Live whilst likely paying the bandwidth costs for all users.

    Free online is important for me, but only to dip my toe in now and again.

    #21 5 years ago
  22. The1stMJC

    PSN+ has been a plague on my friend list. I have around 65 people from around the world on it and 20 of them have PSN+ and each week it seems one more person gets PSN+.

    I am still waiting for PSN+ to offer a game I don’t own before I jump on PSN+. Also an actual useful feature would be nice automatic download seems like something that would piss me off.

    #22 5 years ago
  23. LOLshock94

    sony made a mistake by saying PSN was free

    #23 5 years ago
  24. sickpuppysoftware

    The problem for me is the age of the games on offer. Month one I had most of the games offered, certainly all the ones I wanted. Month two exactly the same. I’m not sure if month three is the same but if it is I still won’t bite.
    I know they won’t give away brand new stuff but they should at least offer discounts, more themes, avatars, in-game trinkets and baubles, movie rentals, firstplay etc.

    It doesn’t help that the US version has been massively generous either. It just smacks of the same old console trick of treating europe like dirt.

    #24 5 years ago
  25. Crysis

    The only was PS+ will become a success is if they start to add features & services, content is fine, but many of the core gamers which would be likely to get this service would also likely to own most of the offered content, maybe arrange it so every single preorder exclusive item is available to PS+ subscribers for a start, that would sway quite a few people, heck, just offer in-game content, cross-game chat is definately very wanted, i could not care less myself cuz i lost my mic :( PS2 playback would likely make every single core gamer sign up, though i do not know if it’s even possible, maybe also a larger store content selection, like adding to whole psone catalogue, there are many gems missing on it right now which ppl would absolutely love, maybe a free movie a month out of a selection would be great, or atleast a discount, also would love to see a largber catalogue of downloadable ps3 games, if the future of gaming is download only, why not give us that alternative now, & offer frequent discounts in the same way steam does

    #25 5 years ago
  26. LOLshock94

    @25 you lost ur mic :0 buy SOCOM………… and then bin it

    #26 5 years ago
  27. sg1974

    PS One games were good 15 years ago. Now? Not so much.

    And a bit patheic that one of the benefits of the service is being pushed demos of things available free on the store which any gamer worth his salt has already tried if not actually bought anyway. Its one giant clusterfuck. Only a mug would pay for this.

    #27 5 years ago

Comments are now closed on this article.

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    A Mini Cooper has invaded Gran Turismo 6 via a new update. The Mid-Field Raceway track has also been added, and its a new and improved version of the original track from previous Gran Turismos. The new B-Spec Mode feature has also been added which allows the AI driver to race on your behalf. Additional […]

  • Nintendo is bringing New 3DS Xl and some playable titles to PAX East

    Nintendo is bringing New 3DS Xl and Splatoon with it to PAX East next month. The E3 2014 build of the game lets eight players transform into squids in a race for “splattered-paint dominance.” Code Name: S.T.E.A.M. will also be playable and featured in stage presentations at the Nintendo booth. Upcoming or newly released Nintendo […]

  • Battlefield Hardline Premium information seems to have slipped out early

    Battlefield Hardline Premium perks have apparently leaked a bit early, according to a post on Reddit. Over on the Hardline subreddit is an image which was take at a GameStop location, noting two week early access to content additional Battlepacks and more. Here’s the rundown: Four expansions Two weeks early access 12 additional Battlepacks Exclusive […]

  • Final Fantasy: Record Keeper arrives in the US this spring

    Final Fantasy: Record Keeper will be released in the US on iOS and Android this spring, DeNA and Square Enix today. The mobile titles allows players to “relive favorite moments” across all Final Fantasy installments and build a team of classic characters from across the entire franchise. If you sign up for email updates, you […]

  • Battlefield Hardline now available for pre-order, pre-download on Xbox One

    Battlefield Hardline is now available for pre-order and pre-download on Xbox One. You can pre-order it now from the Xbox Store and once you have paid for it, you can start your pre-download. Battlefield Hardline releases on March 17, and will be made available to pre-downloaders come 12.01am EDT. Check pricing and availability for your […]

  • Dying Light interactive video allows you switch between day and night

    A new video for Dying Light has been released, which allows you to hit the Z key to change between day and night. Titles Life and Death in the Quarantine Zone, the interactive story video showcases how the game changes between day and night. Daytime and nighttime are shown side-by-side but the z key allows […]

  • Havoc DLC for Call of Duty: Advanced Warfare out on PS3, PS4; PC delayed

    The Havoc DLC for Call of Duty: Advanced Warfare is now available for PlayStation 3 and PS4. Havoc contains the four multiplayer maps Core, Drift, Sideshow, and Urban along with the AE4 directed energy assault rifle, its custom variant, and the Exo Zombies cooperative mode. You can purchase the DLC separately or pick up the […]

  • Here’s a teaser for Resident Evil Revelations 2: Episode 2

    A teaser video for the second episode of Resident Evil Revelations 2 is available, so if you’ve yet to play the first episode, you may want to skip this. Resident Evil Revelations 2′s first episode is out now. Thanks, GamesHQMedia.

  • North American eShop update is full of Donkey Kong games

    Nintendo has updated the North American end of the eShop with Titan Attacks, Donkey Kong Land, Donkey Kong Country and more. eShop on 3DS Ironfall Invasion Titan Attacks! Donkey Kong Land – Virtual Console Donkey Kong Land 2 – Virtual Console Donkey Kong Land 3 – Virtual Console Luv Me Buddies Wonderland Around the World […]

  • Venture into the Valley of the Yetis next week in Far Cry 4

    The next batch of Far Cry 4 DLC, Valley of the Yetis, releases in March and Ajay Ghale will be tasked with surviving violent cultists and the mythical Yeti. Apparently the cult is looking for a secret hidden in the valley, and Ajay has discovered their motives. The DLC features co-op with a friend taking […]

  • The Butcher’s AK/CAR Mod Pack out for Payday 2, has dino masks

    The 19th DLC pack for Payday 2 title The Butcher’s AK/CAR Mod Pack is available on Steam from today. The pack will run you $4.99/€4.99 and features: 11 new weapon modifications for the AK rifles in the game 11 new weapon modifications for the CAR rifles in the game Four new masks together with their […]

  • Battle Chasers slated for PC, consoles; comic picks up where 2001 storyline left off

    Darksiders creator Joe Madureira and Vigil co-founder Ryan Stefanelli have confirmed a Battle Chasers game and a new comic are in the works at their new studio Airship Syndicate. Speaking to Polygon, Madureira and Stefanelli wouldn’t provide details on the the game, but did divulge it will be an adventure RPG with player-controlled Battle Chasers […]

  • Shovel Knight, Hotline Miami 2 discounted for Sony’s annual Spring Fever Sale

    Sony is hosting its annual Spring Fever Sale which runs for eight weeks and features a new title each week. The sale starts next week on March 3 with the launch of Helldivers. Here’s just a few items included in the sale: HELLDIVERS (PS4/PS3/PS Vita) March 3 Hotline Miami 2: Wrong Number (PS4/PS3/PS Vita) March […]

  • The gold Super Mario amiibo is a Walmart exclusive

    The Super Mario Gold amiibo which surfaced via a CPSIA certificate earlier this month will be a Walmart-exclusive, Nintendo has announced. The gold-colored Mario amiibo will be released the same day as the Mario Party 10 game for Wii U and will run you $12,96 at 3,000 participating Walmart stores in the US. Along with […]

  • Here’s an overview trailer for Final Fantasy Type-0 HD

    As new gameplay overview trailer for Final Fantasy Type-0 HD, culled from the Active Time Report, stream has been sent over by Square Enix. The video provides a look at the history and environments of the Kingdom of Orience; the 14 memebers of Class Zero; the battle system with customizable magic spells; and the ability […]

  • Final Fantasy 15 video gives you a look at the game’s wildlife

    A new video shown by Final Fantasy 15 director Hajime Tabata during the latest Active Time Report, contains a look at the game’s wildlife and ecology. You can watch the full stream two hour stream through here, or a smaller clip courtesy of GamesHQMedia below.

  • Lionhead ventures into the free-to-play space with Fable Legends

    Fable Legends will be free-to-play when it launches on PC and Xbox One. According to Lionhead, the one versus four cross-platform title borrows from MOBA games such as Dota 2 and League of Legends as it will contain free, rotating heroes which will be added to a roster for a two week period. Once the […]

  • Win! 5 pairs of tickets to the Call of Duty European Championships

    We have five pairs of tickets to giveaway for the Call of Duty European Championships, taking place in London this weekend. The event takes place this Saturday February 28 and Sunday March 1 at the Royal Opera House in Covent Garden. Winners can watch teams will go head to head for a $10,000 prize pot […]

  • Republique Remastered has released on Mac and PC

    Republique Remastered, which was announced earlier this month, is now available for Mac and PC. The game is 20% off through Steam, GOG and the Humble Store for $19.99 until March 4. Thereafter, it will run you $24.99. The Remastered edition contains all five episodes of the game, with 1-3 available now and the remaining […]

  • LA Cops coming to Xbox One in March

    Isometric shooter LA Cops is coming to Xbox One on March 13. Already on Steam Early Access, the game looks like it’s been heavily inspired by Hotline Miami. Walk into a room, open fire, leave bloody puddles in your wake. It’s being published by Team 17. Check out the video below for some 70s cop […]

  • We have $500 of Steam Wallet funds to giveaway!

    We’re giving away 10 Steam Wallet prizes worth $50 each to VG247 readers, courtesy of Bundle Stars. All you need to do to be in with a chance of winning $50 Steam credit is to enter your details below. Join the Bundle Stars Steam group for entry in the sweepstake, and gain extra entries for […]

  • Lapsed Final Fantasy 14 players tempted back with 10 day freebie

    Square is offering lapsed FF 14: A Realm Reborn players a chance to come back to the game for 10 days worth of free adventuring. Provided you’ve already bought and registered an account you’ll be able to play free of charge from Feb 27 to March 9. Square wants you to sample the new content […]

  • Advanced Warfare: Sledgehammer looking at “opportunities” to recreate classic Call of Duty maps

    Sledgehammer Games has told VG247 it’s looking at opportunities to recreate classic Call of Duty maps in Advanced Warfare. According to co-founder Michael Condrey, players of the latest Havoc DLC are asking how Exo abilities and verticality can be added to classic franchise maps. “We’re taking a look at some opportunities to really highlight the […]

  • GTA Online reader playlist week 7: and the winner is…

    Stuff was shot. But only one player emerged victorious. GTA Online player e031271 won last night’s VG247 reader playlist, beating myself, Matt and regulars solidorwot and Revolting. Congratulations, Mr e031271. A deserved victory. We play a GTA Online playlist in an open session every Wednesday on PS4, because it’s both funny and fun. Anyone’s welcome […]

  • Leaked screens reveal The Reef as Destiny’s new “social space”

    A handful of leaked Destiny screens seem to confirm that The Reef location will be the new social space in Destiny. The new addition is likely to be revealed as part of the upcoming House of Wolves expansion. Reddit user Megamanexe4 dropped the screens on the site earlier this morning, along with grabs that reveal […]

  • Darksiders creator teases Battle Chasers game

    Joe Madureira, creator of Darksiders, has released art that strongly suggests a Battle Chasers game is in the works. Battle Chasers was a comic book from the late 1990s that suffered notorious production problems between issues and was never finished. Madureira formed Airship Syndicate after the collapse of THQ, where he co-created Darksiders. His latest […]

  • Infamous video nasty Axe recreated in GTA 5

    The trailer for notorious horror movie Axe has been recreated in GTA 5. The shot for shot remake is the work of gigerbrick who has previously recreated exploitation flicks like Machete and Hostel using Lego. The original Axe movie was banned in 1984 in the UK but passed with cuts in the late 1990s. Movie […]

  • Payday 2 for PS4 and Xbox One includes “a year’s worth of paid DLC” for free

    Payday 2: Crimewave Edition will include a year’s worth of paid DLC from the PC version of the game for free. The new-gen version of the game will be available June 2015, and includes almost all of the paid and free DLC released so far for Overkill’s popular first-person shooter. That DLC includes The Big […]

  • Yes, Mortal Kombat X will require Xbox Live Gold or PS Plus

    Mortal Kombat X won’t bypass Microsoft and Sony’s premium online play requirements. Reports that Mortal Kombat X wouldn’t require PS Plus or Xbox Live Gold started circling earlier this week thanks to a communications error. Answering fan questions on Twitter, producer Shaun Himmerick accidentally gave the impression that premium console subs would not be required […]

  • This is what Destiny players most want next

    Destiny patch 1.1.1 has resolved or at least addressed a number of complaints voiced by the community, but there are plenty more. des Destiny community manage David “Deej” Dague has put out a call for Guardians to share their concerns – or rather, what they think the community is most concerned about. “Set aside your […]

  • Google AI can play games now, so we’re probably all going to die

    Google has brought us one step closer to our inevitable slaughter or enslavement by machine overlords. Google has developed an AI that can learn to play video games and devise brand new strategies. Let me just rephrase that: Google has created an AI that can teach itself new skills, including how to play video games. […]

  • First footage of Renowned Explorers: International Society surfaces

    Renowned Explorers: International Society is a turn-based strategy game from the team behind Reus, and it looks great. Renowned Explorers was announced almost a full year ago, but has been pretty quiet since then. Developer Abbey games has now announced that the game has hit alpha, and will be open to select testers soon. You […]

  • Cities: Skylines developer commits to mod support

    Cities: Skylines will fully support the modding community. Hailing from famously mod-friendly publisher Paradox, Cities: Skylines is a no-brainer for mod support – especially as a lack of mod support is one of the things SimCity was so heavily criticised for when it firts launched. In the developer diary below, Paradox’s Jakob Munthe is joined […]

  • Nosgoth update adds Vanguard, many fixes

    Nosgoth, the free-to-play multiplayer brawler set in the Legacy of Kain universe, has been given a significant makeover. The major feature of the latest Nosogth game update is a new playable human character called the Vanguard. “Equipped with mighty throwing axes and a shield, the Vanguard can take more punishment than any human class that […]

  • Xbox Live Gold 12 month sub $40 on Microsoft store

    Microsoft is offering $20 off 12 month Xbox Live Gold subscriptions at the moment. An Xbox Live Gold 12 month subscription will normally set you back $60, but a Microsoft Store promotion has it on offer for $40. The offer is restricted to the US store. Although you can opt to grab your sub as […]

  • Tomb Raider movie script to be penned by TMNT writer

    Tomb Raider will be Evan Daugherty’s second reboot of an established universe. The Tomb Raider movie reboot has signed on a writer and a distributor. Deadline reports Teenage Mutant Ninja Turtles, Divergent, Snow White And The Huntsman and G.I. Joe 3 writer Daugherty will write the film. Additionally, Warner Bros. has signed on to distribute, […]

  • Shelter 2 pre-orders open, launch trailer debuts early

    Shelter 2 is a game in which you are a mother lynx and must protect a den of kittens. Yes, it’s delightful. Shelter 2 is coming to Mac and PC on March 9. Pre-orders are now available on Steam at 10% off or on GOG.com with a free skin and soundtrack, or 20% off if […]

  • That Batman: Arkham Knight trailer is full of codes

    Batman: Arkham Knight’s trailer is like a Transformer – there’s more than meets the eye. The new Batman: Arkham Knight trailer contains a number of codes. Eagle-eyed users have spotted four so far, and work on cracking their meaning is progressing. According to an /r/games thread rounding up results so far, the codes pertain to […]

  • Assassin’s Creed haystacks won’t save you from a fall

    Assassin’s Creed fans, don’t try this at home. Assassin’s Creed characters can survive falls of almost any distance as long as they aim for the haystacks scattered handily throughout the environment. As you probably deduced from your familiarity with common sense, this isn’t a real thing: falling from heights kills you, the same way a […]

  • Why are people buying PS4 and not Xbox One?

    PS4 is outselling Xbox One – but why? A new report may have the answer. Last month, the PS4 outsold the Xbox One in the US again, returning it to the top of the charts after just two months away. Why? What has caused this reversal in fortunes in Microsoft’s home territory? According to a […]