Sony's loss on Playstation 4, and the coming Playstation App
Today we have good news and bad news. Technically, both news are good news for gamers, but for Sony one news happens to be ominous. Sony Japan's Masayahu Ito says that Sony will incur loss at every sale of Playstation 4 hardware, but it MIGHT be able to reap profits from day one. According to Masayahu Ito, every gamer will have to open a Playstation Plus account, and every game the gamer buys, Sony will reap a slight profit from the transaction on the gamer's part.
Although, Playstation Plus' features may not be completely aligned with an average gamer's needs, but it is still a commendable service, owing to the free games and regular updates. Moreover, it is requisite for online gaming.
Furthermore, it is quite common for game consoles to lose money at launch, but it is an ingenious business tactic. By selling consoles at loss, companies are able to get the price declined, increase their install base, and draw more developers. Over time, when the hardware price falls, the companies' margins surge and the money generated through developer partnerships rises. For instance, Nintendo is allegedly losing money on every sale of Wii U console.
However, it is abstruse how much money Sony will lose on every sale of Playstation 4, but according to reliable sources, a loss in the proximity of $60 will be incurred. It is ambiguous how Sony can lose money on Playstation 4 that has a price tag of $399. The underlying reason could be that Sony was well aware that the Playstation 4 hardware is worth more than $399 and that Microsoft's Xbox One price, $499, is commensurate with the hardware, but in order to grapple with Xbox's popularity and increased user base, Sony intentionally brought the price down. This tactic has thus far served Sony well. This policy of Sony is good news for gamers, for they will taste this next-gen console for less in contrast with Xbox One's hefty price.
We cannot blame Microsoft for Xbox One's price also. Microsoft is facing disinterest shown by investors, its market share has declined, and it has not figured out how to compete with Android and Apple. As a result, it is not willing to endure losses from Xbox One quite logically.
The second good news is that a Playstation App will come on iOS and Android in Novemeber. Sony announced the Playstation App in February this year, and on Thursday at the Tokyo Game Show 2013 it revealed plans for the App's release. The Playstation App will be released in November, the same day the Playstation 4 will be released. The App will be on Android and iOS. The app will allow smartphones and tablets to serve as controllers for some games and as second screens for other games. As second screens, players will have greater information and accessibility in the game. Moreover, the app will let gamers download games remotely, and with this app players will be able to chat on Playstation Network, Twitter, and Facebook.
What do you think about it? Do both news make you jubilant? Please let us know in your comments, for we feed on them.