Comparing the service to XBOX Live on his GameTrailers show Pach Attack, the Wedbush Morgan man said that the Microsoft service had a slow start until extras 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, he said.
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.
What this means is the PlayStation Network as a whole will not become profitable, as Im 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.
We reckon a good 35% of our PSN friends list are subscribers, which is probably a decent attach rate this early on. What would PSN Plus have to offer you if you're not already a subscriber?
[source vg247.com]
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