PS4 “Close to the Peak” According to Sony: “Confident” About First Party Games
During Sony’s Investor Day currently being held in Tokyo, Sony Interactive Entertainment President Andrew House was asked if the PS4 finally reached its peak, and expectations for the performance of first party games during the current fiscal year.
House mentioned that it’s difficult to answer on whether PS4 has reached its peak or not, primarily because looking at past cycles, the software peak and hardware peak normally don’t come at the same time, but he software peak happens one year after the hardware one.
According to House, the goal for PS4 is to maintain the current momentum until either fiscal year 2017 or 2018 (meaning until March 2018 or 2019). The console might be “close to the peak” now, but House feels that there is still more margin to improve and increase its performance.
House also mentioned that the company expects a very good fiscal year for its first party games. The games showcased at E3 included games for both 2016 and 2017, and that’s why this is the right timing to be confident about Sony’s first party game line-up.
Responding to another question, House explained that in the past Sony has been very conservative in the past for what concerns revenue predictions, because they had to consider what impact the mobile market could have had on the business, making drawing a precise outlook difficult.
Now PlayStation 4 is on its third year and the momentum is continuing, so the company is now more confident, and feels that the business is more stable.
On top of that, the company noticed that the contribution of network sales is more significant than in the past. The pattern is different than what was seen in the PS3 era, as PlayStation Plus generates very stable profit. The fact that the financial outlook shifted to a less conservative stance reflects that as well.