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[Updated] CFO Hiroki Totoki Not Concerned with Third Party Software Sales on PC

LectureMaster

LectureMaster

Gold Member
tech4gamers.com

PlayStation Facing No Threat Of Users Switching To PC, Says Sony

PlayStation does not see PC gaming as a current threat to its console sales despite releasing first-party offerings on the platform.
tech4gamers.com tech4gamers.com


PlayStation has become increasingly familiar with the PC gaming market over the years. Following major releases like Ghost of Tsushima and Horizon Forbidden West, Spider-Man 2 is headed to the platform next month, and the gaming giant has shown no signs of slowing down.

This focus has also sparked discussions about PlayStation potentially losing customers to the PC market. However, Sony argues that it has yet to see a trend of losing customers.

This topic was brought up during Sony’s latest shareholders Q&A last month when the gaming giant outlined that users are consistently upgrading from the PS4 to the PS5.
Addressing the subject of PlayStation missing out on potential PS5 sales due to users picking PC gaming, CFO Hiroki Totoki expressed no concerns and outlined that the PC focus is not a threat to the current business model.

We didn’t confirm any such trends at the time, nor do we see it as a major risk.
-Hiroki Totoki
Click to expand...

Interestingly, Hermen Hulst made a similar comment when discussing the PC strategy. He noted that the main intention is to entice gamers to buy consoles through flagship IPs. Elsewhere, Mark Cerny also noted that both markets are fundamentally different.


Edit:
My man Topher Topher dug in the stream video and it appears that the remark was in response to concerns about 3rd party games.
Topher said:
LectureMaster LectureMaster I watched the stream and transcribed the question/answer. The translation is a little rough as the guy is having to translate on the fly, but this is what he says....

Stockholder question:

"Looking at games, especially in the second half, in the third party software lineup, not compatible to the PS4, but some new titles are only compatible with PS5. There has been an increase in the number of that. What is the thinking behind that? Are you expecting an acceleration of transition from PS4 to PS5? Or, and of course we are talking about third party, and those users with the PC and PS4, they might be able to purchase the software for PC and there might be a risk. How do you view the risks and opportunities?"

Totoki:

"The third party lineup only for PS5. You said there might be an increase in the number of the titles, but because of the timing and because of the late stage of the console cycle and naturally we have more titles for PS5. But the transition to PS5, we believe the transition is happening as we expect. So if you upgrade to PS5 basically there will be upside in the software purchases we see that as an opportunity. As for the risk for third party software for PC, we don't see that as a risk and we haven't seen that as a trend emerging."

Everyone should note, that the entire conversation was about third party software only.
Click to expand...
 
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mansoor1980

mansoor1980

Gold Member
my-child-oh-my-child.png
 
yurinka

yurinka

Member
Almost all their console related metrics are at record numbers and growing.

There is absolutely nothing that leads to think their PC strategy is negatively affecting any of their console metrics. If something, it's helping them to increase their console userbase (one of their record metrics is their monthly active userbase).

So it's normal that they say things like that.
 
gothmog

gothmog

Gold Member
yurinka said:
Almost all their console related metrics are at record numbers and growing.

There is absolutely nothing that leads to think their PC strategy is negatively affecting any of their console metrics. If something, it's helping them to increase their console userbase (one of their record metrics is their monthly active userbase).

So it's normal that they say things like that.
Click to expand...
Yep.

The difference is Sony actually has a strategy to stagger releases across platforms. They probably also see people double dipping as well in their data.
 
Miyazaki’s Slave

Miyazaki’s Slave

Gold Member
The PC is basically universal health care...it only works if someone else does all the hard work, i.e. pays for it, while PCMR waits for hand outs.

mTN4ghV.jpeg


I thought this whole thread was a joke post..but I guess some folks REALLY have hills they want to die on. Carry on!
 
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Topher

Topher

Identifies as young
LectureMaster said:
tech4gamers.com

PlayStation Facing No Threat Of Users Switching To PC, Says Sony

PlayStation does not see PC gaming as a current threat to its console sales despite releasing first-party offerings on the platform.
tech4gamers.com tech4gamers.com


PlayStation has become increasingly familiar with the PC gaming market over the years. Following major releases like Ghost of Tsushima and Horizon Forbidden West, Spider-Man 2 is headed to the platform next month, and the gaming giant has shown no signs of slowing down.

This focus has also sparked discussions about PlayStation potentially losing customers to the PC market. However, Sony argues that it has yet to see a trend of losing customers.

This topic was brought up during Sony’s latest shareholders Q&A last month when the gaming giant outlined that users are consistently upgrading from the PS4 to the PS5.
Addressing the subject of PlayStation missing out on potential PS5 sales due to users picking PC gaming, CFO Hiroki Totoki expressed no concerns and outlined that the PC focus is not a threat to the current business model.



Interestingly, Hermen Hulst made a similar comment when discussing the PC strategy. He noted that the main intention is to entice gamers to buy consoles through flagship IPs. Elsewhere, Mark Cerny also noted that both markets are fundamentally different.


Click to expand...

That headline from the article doesn't really match what Totoki is saying
 
Gamer_By_Proxy

Gamer_By_Proxy

Member
For me it's not the first party games going to PC that's the threat. It's getting all the 3rd party and indie games a lot cheaper with free MP that's a threat.
Almost none of my 3rd party/indie spending is going to Playstation anymore. It's all PC/Steam Deck.
 
Killjoy-NL

Killjoy-NL

Banned
Zacfoldor said:
PS5 is most profitable gen for Sony so far.

gamerant.com

PS5 is Now the Most Profitable Console Generation in Sony History

A new report from Sony reveals that the PlayStation 5 has surpassed the PS4 as the company's most profitable console generation.
gamerant.com gamerant.com

Xbox took a shit, so if anything I expect a lot of Xbox players moving to PS5 vs PS5 players moving to PC. Just being honest.
Click to expand...
This is the only realistic outcome.
Whatever Xbox loses, Playstation gains.

The small percentage that moves to PC or other platforms is negligible.
 
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Y

yogaflame

Member
Brand loyalty is still pretty big for PS. It is not the 90's and early 2000 OG PS era where they are at there best, but still, PS still have there moments of greatness even if its not perfect.
 
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xrnzaaas

xrnzaaas

Member
Sony are doing a lot of stuff to drive people away. Playing on PlayStation has generally become much more expensive - games are super expensive, hardware is more expensive, same with base PS+. At the same time they've been delivering less exclusives during this generation.

It's not just a wild theory that more people will do calculations in their head whether it's worth it to remain in PS ecosystem or maybe upgrade to a PC... and enjoy the additional benefits like free online or being able to mod games.
 
O

Ozriel

M$FT
onQ123 said:
PS5 at a higher price is on track to sale the same as PS4 while Xbox Series with a model that is a cheaper than Xbox One is falling behind.
Click to expand...

You realize that would imply a shrinking console market overall, and significant overlap with PC?
 
E

Ebrietas

Member
Idiotic statement. If he really believes that why not release everything day 1 on PC? It’s obviously a major competing platform, much more so than Xbox at this point.

You can’t say that two platforms are “fundamentally different” when they offer nearly identical games library and almost the same top selling games.
 
E

EN250

Member
That's probably what Uncle Phil told to papa Satya at the beggining of the GP push along with "it actually increases sales" not realizing at the time, how he really fucked up, guess Sony is about to find out too :messenger_tears_of_joy:
 
Fess

Fess

Member
Fabieter said:
So if no one is switching you can start releasing games day one on PC.
Click to expand...
I’ve only had the Pro for a month but I would still love that. I play on console when I can’t play on PC, with no exclusivity I would be on PC 100%.
 
Fabieter

Fabieter

Member
Fess said:
I’ve only had the Pro for a month but I would still love that. I play on console when I can’t play on PC, with no exclusivity I would be on PC 100%.
Click to expand...

Do you mostly play exclusive games than I don't think Sony would care if you still buy their games on pc.
 
hououinkyouma00

hououinkyouma00

Member
Fabieter said:
So if no one is switching you can start releasing games day one on PC.
Click to expand...
Buggy Loop said:
Seth Meyers Lol GIF by Late Night with Seth Meyers
Click to expand...
Ebrietas said:
Idiotic statement. If he really believes that why not release everything day 1 on PC? It’s obviously a major competing platform, much more so than Xbox at this point.

You can’t say that two platforms are “fundamentally different” when they offer nearly identical games library and almost the same top selling games.
Click to expand...

They are saying their current strategy has not resulted in a noticeable trend of people moving off platform.

Right now, their strategy is to release on PC after a certain period of time (I doubt it's a set amount of time and more like a majority of possible sales have been sold type of thing), and this strategy hasn't resulted in a platform shift. As much as Gaf likes to think they are smarter then billion-dollar companies they aren't stupid. They know if they release all of their titles day 1 on PC that they would lose players because you can be brain dead and that is still obvious. They can obvious see what happened to Xbox and part of the downfall of Xbox is Play Anywhere (I would say it's one of the biggest reasons and the one that truly ruined any chance they had at coming back after the XBO fiasco). This strategy allows them to still have the big console sellers, and then when the games have sold the vast majority of what they will sell on PS then they release it on PC and makes some more money.

You still get the regular console folks, you get the double dippers, and you get some sales from the people who were never going to buy your console in the first place.

Now whether or not their idea behind the strategy actually works or not (entice people to become console owners by releasing IP) who knows but you can't argue that their strategy is working for them.
 
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LectureMaster

LectureMaster

Gold Member
Topher said:
That headline from the article doesn't really match what Totoki is saying
Click to expand...
The author is rocking a GTX 1660 with a 1300W PSU, you need to cut him some slack.

Current PC setup​

Here are my PC specs, picked carefully to cater to my requirements:
Click to expand...
 
Mr Hyde

Mr Hyde

Member
I'm one of the PS users that is currently in the midst of transitioning to a woman.. I mean PC landscape after being a longtime Playstation fan. I know we aren't many at the moment. But we are growing. And will soon become massive.
 
Fabieter

Fabieter

Member
hououinkyouma00 said:
They are saying their current strategy has not resulted in a noticeable trend of people moving off platform.

Right now, their strategy is to release on PC after a certain period of time (I doubt it's a set amount of time and more like a majority of possible sales have been sold type of thing), and this strategy hasn't resulted in a platform shift. As much as Gaf likes to think they are smarter then billion-dollar companies they aren't stupid. They know if they release all of their titles day 1 on PC that they would lose players because you can be brain dead and that is still obvious. They can obvious see what happened to Xbox and part of the downfall of Xbox is Play Anywhere (I would say it's one of the biggest reasons and the one that truly ruined any chance they had at coming back after the XBO fiasco).

Now whether or not their idea behind the strategy actually works or not (entice people to become console owners by releasing IP) who knows but you can't argue that their strategy is working for them.
Click to expand...

So all of the brand power is a lie and they would still bleed players like Xbox did in the past while releasing games on pc. I think at this point they just go ahead with it.
 
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