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PS4′s PlayStation Plus memberships will net Sony $1.2 billion by 2017, says analyst

Thursday, 15th August 2013 11:17 GMT By Dave Cook

PlayStation 4′s PS Plus online paywall will generate $1.2 billion for Sony by 2017, according to analyst firm IHS Electronics and Media.

In a statement sent to VG247 this morning, IHS analyst Piers Harding-Rolls explained that while major companies are set to show-down at gamescom next week, Sony has already taken a significant step towards prosperity by charging all online players a PS Plus fee.

It reads, “While this battle to engage publishers and consumers ensues, Sony has already taken a major step towards a more profitable and competitive PlayStation business with a single but significant commercial decision to place online multiplayer gaming behind the PlayStation Plus subscription paywall.

“IHS forecasts that Sony’s change in strategy will help generate $1.2bn in annual consumer spending on PlayStation Plus subscriptions by 2017 and will give Sony access to an essential and substantial new revenue stream, one which Microsoft has enjoyed since the launch of Xbox Live way back in 2002.”

The firm claims that to-date, PS Plus subscriptions have earned Sony $140 million as it is not yet a mandatory requirement for online play.

“In contrast, Microsoft Xbox Live users, who only have access to online multiplayer gaming through Gold accounts, spent nine times as much – $1.25 billion – on service subscriptions in 2012,” the statement continues.

“And since the launch of Xbox Live in 2002, total spending on Xbox Live subscriptions has reached a very substantial $4.7 billion. Over the past decade, the revenue derived from this spending has enabled Microsoft to invest in and build a world-class online platform and digital content service, allowing the company to stay ahead of its console competitors.”

Overall, the firm believes that PS4 will be a big money spinner for Sony. The statement concludes, “Sony is positioning itself to deliver its most profitable PlayStation business since the launch of the PlayStation 3.

“IHS believes that lower research and development costs for PlayStation 4 hardware, additional revenue streams from online service subscriptions and a more aggressive transition to higher margin digital content sales are combining to strengthen Sony’s games business outlook even in the face of increased competition from cheap Android consoles and alternative devices eating into consumers’ gaming time, including smartphones and tablets.”

Is the PS Plus paywall on PS4 a smart move from Sony? Does it matter much given the amount of freebies subscribers should be looking to receive? Let us know below.

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19 Comments

  1. Digital Bamboo

    I must admit, it’s getting increasingly tempting to sign up. The only thing holding me back are the potentially large downloads and fact that I wouldn’t actually own the games (though I know the degree to which I “own” my other games is questionable)…still, small price to pay for the 3 games I want to buy now that are currently on offer for “free”.

    Would be annoying if games I bought came out for free later though…

    #1 12 months ago
  2. DrDamn

    @1
    It’s great value and it just gets better the more you have of PSV, PS3 and PS4 and the longer you have the sub for. I found when games got released which I already had physical copies of I ended up trading them in and putting the money I got back towards next years sub :).

    ‘Ownership’ is not a problem for me because if I want to own something I buy it, and as long as they keep offering get value I’ll keep the sub up. I’ve saved loads on not buying games and also discovered gems that would otherwise have passed by (like Payday).

    It’s not for everyone, but I reckon there is good value in there for the majority of owners.

    #2 12 months ago
  3. viralshag

    I definitely think PS+ is great value for money. MS really need to step up their game with Live to contend. Although I have no immediate plans to buy another PS3 or get the PS4, this service is definitely a highlight of the system.

    #3 12 months ago
  4. Unknown_Gamer

    They deserve every penny , they are always supporting the gaming industry unlike other companies .

    #4 12 months ago
  5. RandomTiger

    As someone who was looking forward to not having to pay for gold anymore by transitioning from the 360 to the PS4 it was a little disappointing but they’ve managed to sell PS+ to me on its own merit anyway.

    I just hope its not an issue if my woman wants to play online split screen with me, you shouldn’t need a whole new sub just for that.

    PS+ and a general dissatisfaction with MS has seen me go from buying everything I can on the 360 to using the PS3 by default, preordering a PS4 and mulling the merits of the Vita.

    #5 12 months ago
  6. Lv01

    @5 to help with the mulling over the vita, the benefits and merits of PS+ that have already won you over for the PS3, that will be doubled with the addition of PS4, could be trebled with the addition of vita..!

    so many more and extra free games for it with the PS+ sub, that with all the ones i get for my PS3, i almost have too many games to play! there simply isnt enough time in the day!

    and when the PS4 comes out and they start playing together…

    and technically it is a superb little console in its own right, of course!
    i love it.

    #6 12 months ago
  7. wildBoar

    I find it kinda baffling how some people are still on the fence with PS+. I picked up a sub in January and since then, I’ve just gotten drowned in awesome titles. There are the filler games in between obviously, but you get so much for the sub fee. Tried this game the other day called Malicious, not great bu still a lot of fun. Never ever would’ve played it otherwise.
    I don’t have room for physical copies anymore anyways, having to swap discs.. If Sony would push digital harder on PS4, that’d be the dream.

    #7 12 months ago
  8. Irani

    Oh Man ,Sony Are You Serious? Are you kidding Me? Yeah You Are kidding Me , Fu.ck You Sony

    #8 12 months ago
  9. Dave Cook

    @9 What the hell are you talking about? Xbox Live Gold is the same, except without the awesome free games.

    Mental…

    #9 12 months ago
  10. Lengendaryboss

    @Dave
    Keep humouring the trolls ;)

    i’ll help out http://www.youtube.com/watch?v=yy0Bvu7vy9I

    Edit: This video is king: http://www.youtube.com/watch?v=MvVykmoalI4

    #10 12 months ago
  11. MrWaffles

    I’m a pc/mobile gamer, threw my consoles away a while back, but when I learned about the free games thrown in the +PSN subscription I found it extremely tempting.

    I wonder how long will it take for PS4 games to start being offered after launch. (If they get any there day-one people will lose their shit, including myself).

    If you have a sony console and are not taking advantage of this, then you’re a fool (and/or have loads of cash)

    -Waffles

    #11 12 months ago
  12. Lukos

    @1

    That only applies to free games. If you buy a game at a discount, i.e. if you pay anything at all for a game, it’s yours whether you eventually leave PS+ or not. Any DLC you buy around a free game will remain, but you will need to buy the game to use it after leaving PS+.

    #12 12 months ago
  13. DrDamn

    @MrWaffles
    Day one PS+ on PS4 gives you DriveClub PS+ edition (that includes all the games functionality including online and the full single player campaign – just not all the tracks and cars). Over the following months PS+ also gets you 3 indie titles Don’t Starve, Outlast and Secret Ponchos.

    #13 12 months ago
  14. deathm00n

    @11 There’s already 3 games anounced as free to PS+ members on PS4 day one, Driveclub (with less cars and tracks) is one of them. Outlast is the other and the third one I don’t remember…

    Edit: took to long to comment, ninja’d by DrDamn

    #14 12 months ago
  15. DrDamn

    @15
    :-)
    It’s not clear yet the schedule of the indie games. I’d expect one a month for the first three months something like that. The indie strategy is quite a cunning one to fill the gap before full retail like titles can realistically be made available.

    #15 12 months ago
  16. sebastien rivas

    Dave,

    Out of this 1.2 billion$ how much is the forcasted profit after paying everybody and hardware launch, and transport/export etc?

    I am interested to know.

    To answer you, yes I believe it could be a great potential for Ps paywall and Sony in general.
    Although the great point to consider is price tag, price tag, and again price tag.
    If Sony aligns itself with MS with similar content/feature versus price tag, then it may work. But again I would foresee great difficulties because competing with something in place for such a long time will overt many criticisms if only with ui just to start with.

    1) I would be Sony, in order to grab more and keep happy children then I would discount the paywall feature to keep everypone happy compared to MS. Even if it is a 1 year deal because it goes in equation with (2)
    2) Work, and work harder to understand what users think of it, like and like not and also most importantly… user wishes . Then develop and implement.
    Then you can add up to the price tag along the way.

    Otherwise there is a good risk to encounter a complete flop that will start from something completely unexpected and ridicul in many eyes.

    This was my 2 pennies.

    Cheer ;)

    #16 12 months ago
  17. Eregol

    @Dave I love how in your post at number 9 you seem to be talking to yourself. ;)

    #17 12 months ago
  18. DarkElfa

    in case you thought you were doing something else other than just giving Sony your cash for no reason, here you go. Same for Microsoft.

    #18 12 months ago
  19. MrWaffles

    @14 + @15 ok… didn’t lose my shit over those games… but it’s definitely something! Hope they get one of the “big” guys in there for launch :)

    #19 12 months ago

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