How big is the PlayStation Network these days? The answer: very big. Sony’s online storefront generated an eye-watering ¥1,373 billion yen (~$12.5 billion) of revenue in 2018, which is more than the entirety of Nintendo during the same period. To put this in perspective: the PlayStation maker made more money through the PSN alone than the House of Mario could manage across every component of its business.
The PSN also made more than the entirety of Microsoft’s gaming sector, which itself was up 23 per cent year-over-year. It really hammers home how important services are becoming to platform holders, as persistent games like Fortnite and subscriptions like PlayStation Plus generate significant recurring revenue for the manufacturers.
This brilliant graph by Niko Partners analyst Daniel Ahmad illustrates the situation perfectly:
It’s another reason why the PlayStation 5 is almost certain to be backwards compatible with the PS4, as Sony’s going to want to transition consumers across to the new console as easily as possible. The good news is that a new patent suggests it’s already working on ways to deliver on that oft-requested feature.
[source twitter.com, via sony.net]
Comments 80
Wow, just WOW 🤯😳 Good thing Sony is the underdog next gen.
@3Above Right?
That headline will get some ad revenue.
Still it shows why investors over at certain companies want in on this. So. Much. Profit.
WOW just with PSN, i wonder how much more they made taking into other things like consoles and physical sales?
@FullbringIchigo Double.
Makes me wonder why sites arent making headlines like "Super Smash Bros outsold Spiderman in 3 weeks".
Somebody with a better memory, tell me percentage of time leading console in a generation made next iteration backwards compatiable? I want to believe...
um, why would you compare PSN revenue (a store that sells products from 100s of companies) with a single company (Nintendo)? If you want to make a fair comparison you have to compare PSN to eShop revenue, not Nintendo.
@manu0 ???
@manu0 the Nintendo figure includes eshop sales too
@manu0 i think you missed the point, the article is saying that PSN alone beat Nintendo after EVERYTHING they sold, Console, Physical games, accessories etc including third party sales
@ShogunRok "which is more than the entirety of Nintendo during the same period. To put this in perspective: the PlayStation maker made more money through the PSN alone than the House of Mario could manage with hardware, software, and accessories included."
none of that statement makes any sense.
@Knuckles-Fajita Because one's an open world superhero game for the PlayStation 4 while the other's a fighting game mash-up for the Nintendo Switch. But if you'd to make that comparison, you're entitled to.
@manu0 I've edited for clarity.
@manu0 in other words PSN made Sony more money than Nintendo made last year with everything they sold
@manu0 ?????
Damn that's insane , Sony doing there thing as usual 👌🏽
PlayStation is the g.o.a.t.from underdog in 1995.to the king of gaming.word up son
@get2sammyb Well, I had money on Spiderman being the best selling exclusive of 2018 And I mean, it may well still be the case. 9m by November 31st, huge install base and marketing campaign, well known popular at the time brand?
But as you say, one is sales of a fighting game for a smaller system and the other is sales of an open world superhero game for a huge system.
If you think thats an odd thing to compare, then revenue of a subscription service for one platform vs revenue for another company is also quite an odd one.
Crazy.
A lot of money being tossed around, lol.
@Knuckles-Fajita It's not a subscription service, it's the PlayStation Network. I don't find the comparison odd at all because it serves to demonstrate just what a juggernaut PSN has become when it's making more money than the entirety of Nintendo — a company that we can all agree is doing very well at the moment.
@get2sammyb I cant agree Nintendo is doing well. Delays of major titles, reduced forecasts, delays of mobile titles, and a noted move to one major source of revenue.
I could easily argue jumpinv ship is wise given if anything gpes wrong with the current platform the business will falter. And looking at future prospects the uncertainty and failure to deliver after extended time simply knocks confidence further.
The raw numbers now are fine. The future numbers look bleak. And remember that its a company that can look success in the eyes and turn around to walk away.
Well done Sony, that is an eye watering amount of money. With lots of people going digital, this is to be expected, but still very impressive. And just to think that some people think that the PSN is not relevant lol
Insert grabs popcorn GIF.
As big as it is, Apple still beats them all...with reported payout of 30 billion dollars to developers (Jun 2017 to Jun 2018), that equates to over 42 billion ( given Apples 30 percent cut from sales) in Apple Appstore sales...
I still have my concerns about what success of PSN, Xbox Live, etc could mean for the future of gaming but have to give credit where it's due. PSN has come a long way this gen from where it was at the start.
@techdude It’s kinda amazing even when they’re in complete stagnation (iPhone X - iPhone XR) in innovation... Apple just kills it.
@Lonejester three generations out of eight IIRC (PS1→PS2, PS2→PS3 albeit to limited extents, Wii→Wii U). More consistent among portables where the market leader's every console has been backwards compatible with at least one previous iteration, including physical media. And while not its generation's leader, PSP partly reincarnated into Vita's digital library as well.
Good news, hopefully that means we'll continue to get lots more awesome exclusives as they have plenty of funding to go round.
Great news from Sony now they just need to used that money and make a few studios acquisition so they can stay ahead and keep up with MS. Since now they lost Quantic Dream.
@get2sammyb After the last article I'm not going to bother you again about the merits of the tile, I'll let BLPs take care of that stuff, just a softball question.
What is included in PSN?
PS+
PS Now
PS Vue
PS movie rentals
If they are making a ton of money from movie rentals and PS Vue then that has absolutely nothing to do w/ your sentence about BC. In fact, if a lot of their money is coming from PS Now thats' an argument against BC, b/c they could make more money from PS Now if you have to pay to play PS4 games via streaming on your PS5 than they would make w/ BC.
PSN is WAY bigger than BC if it includes all of the above. If PSN $ only includes the PSN digital game store and none of the movies, TV or Now then you have a point about BC.
I read every word of the article but really dont' know what is and isn't included in "PSN".
Come on, @rjejr — let's have some common sense here. Which parts of the PlayStation Network do you think contributed most to its overall revenue? Game sales and microtransactions for Fortnite or PS Vue subscriptions?
Let's use our brains.
But switch be switching with its switching switches.
Impossibru, I tellz ya.
I love PSN but dude, it's like fanboys' den here. The title could easily have said "Sony CRUSHED Nintendo this year" and I can see the hypothetical tears of joy in the eyes of that one dude with the Sora avatar.
Kids find it so important that "their company" is "winning" only to justify their choice, as they usually don't have means to own more than one console. I mean yeah, I used to feel the same in the good old days of the bit wars, but now, even though I only own a PS4, I would not like to see Nintendo failing, or "quitting the console race", as haters like to put it. Nintendo games are (usually) superb but unfortunatelly (for them) they're too arrogant to make as many good calls as Sony does. And that seals the deal.
@makoshichi Are you a Ninty fanboy never seen you here before this article. 😃🤓
I literally feel like I have become dumber reading this comment section, sheesh!
Anywho, certainly impressive numbers, really hope your prediction of BC on the PS5 turns out to be fact!
@Flaming_Kaiser
Guess you ain't looking close enough then...
Just kidding, I usually just don't comment, but I really like the community here. Mostly.
@makoshichi This article is not about Nintendo “losing the console war”. Nintendo is doing an excellent job! That is why this comparison greatly puts in perspective how big PSN is.
This is a website run by and for Playstation fans, very down-to-earth and sincere. Ofcourse there are jokes and banter but calling Push Square a fanboy den is not fair IMO.
Have a great weekend!
@Knuckles-Fajita Holy (€&-&;”#%* , you are DLP.. it was in your avatar all allong
@JJ-firl I wasn't talking about Push Square as a whole, I have only been around for a couple of months, and I really love it here! But this article and the follow-up comments just didn't sit well with me. Maybe @Flaming_Kaiser is right and the Nintendo fanboy in me never died completely
Man sony the underdog always deliver
@makoshichi
I find the article and the comparison with Nin very informative. I had no idea. I'd like to see factual comparison with PlayStation, Xbox and Nintendo more often in an informative way.
Maybe people see what they want to see?
Edit.
People always see what they want to see.
that's a lot of fortnite skins, FUT packs, and overwatch lootboxes.
If Kaz is happy then I am happy
@manu0 um where in the article does it say 'compare'. It's simply a fact. If you want comparisons we could point out that the PS4 is the world's leading console of this gen right now COMPARED to the Xbox and switch. Compared to Xbox and switch the ps4 has double the amount of players. Compared to the switch the ps4 has over ten times as many blockbuster games! See the difference!! Compared to the switch, ps4 studios and its third party partners allow games to reduce in price so more gamers can access their games unlike ninty who constantly hold 'control' prices to ninty fanboys! I love Nintendo games (since snes days) but the price fixing is crummy.
Not sure it's THAT surprising really. I mean, they take a pretty significant cut of every single game sold on the PS Store, and for every game they don't publish, that's pure profit. With 90 million customers out there, that's going to be a huge amount of income without ANY money spent on the product itself. Nintendo aren't going to be making much at all from third party sales on the eShop. All their big sellers will be games they also put a lot of money into developing.
That's a pretty insane comparison, it shows just how far digital has come, i also think it helps that Sony do such great deals/offers throughout the year, there's been many times where i've planned to get a game physically but it becomes so cheap in a sale that i just buy it digitally.
People worrying about the comparison just need to remember that all three consoles are doing well, the industry is the healthiest it's been for a long while, which is great for the industry as a whole
@Morenoj1220 they can use that money to bulid there own studios
@manu0 You asked for a comparison of PSN to eShop, so ZhugeEx made one:
@get2sammyb wow that is indeed impressive..would be nice to compare it to xbox and steam as well
You mean the year's worth of last-gen ports and indie titles and cardboard toys from Nintendo couldn't outperform PSN with it's constant flash sales, larger customer base, and first party launches?! I'm shocked
@manu0 Unfortunately I don't think Xbox divulges this data. I agree, would be nice to see.
@get2sammyb I’m a little confused... How does PlayStation make 112 million over a three-month period (according to the financial report published earlier), but the PSN makes 12.5 billion in one year? Shouldn’t they be including the PSN numbers in the PlayStation division reporting? Something isn’t adding up.
But I thought that Sony was being arrogant and lost their leadership?
@get2sammyb It's not about brains, it was a simple question, what is and is not included in PSN. I'm guessing by your reply you dont' actually know the answer, do you? 😂
And if the answer is Fortnite, well BC won't matter then either, will it, free on PS4, free on PS5, so what could that possibly have to do with BC?
If you are going to get all nasty about it at least pick an example that makes sense. Free-to-play games have nothing to do w/ BC b/c they are always free-to-play.
@makoshichi ??? These are facts... Too bad if some folks will not like this news, but Push Square are here to report, especially accurate numbers.
@rjejr PlayStation Network is PlayStation Network — it's anything that you can purchase in the PlayStation Store. It's PS Plus subscriptions, full-game downloads, DLC, movies, themes, PS Now subscriptions, PS Vue subscriptions, Season Passes, virtual currency, soundtracks, and so on.
@doctommaso You're comparing revenue to operating income. Obviously Sony makes money every time something is bought on the PlayStation Network, but it also has to pay for the bandwidth so that it can be downloaded. And it has to pay people to manage the files. And so on.
The revenue is the money it makes without any cost; the operating income is what's left once the costs are accounted for.
@JJ2 @PS_Nation
It is not as much regarding to what has been said rather than how it has been said. I mean, if I didn't like my PS4 and the "Playstation family" as a whole, obviously I wouldn't be hanging around here, but like I mentioned in another post on this article, I feel like this news takes a jab at my dormant Nintendo fanboy side. Dormant being the keyword here, as I didn't even know I still had it in me. Heck, I do not own a Switch nor a 3DS, but it seems like I'm gonna have to remedy this situation after the events that took place this afternoon
Just a quick google shows 32million PS+ subs active!
@get2sammyb thanks for the clarification. I didn’t realize operating income was the same as “profit“. Learning business terms now. Based on this, the numbers are less impressive; even though Sony is bringing in more revenue, I’m willing to bet that Nintendo is making more profit.
And that is why they want to invest so much into PSN. Tbh if sony wanted to try a disc less ps4 in some countries they could probably do so with reasonable success.
@Knuckles-Fajita damn... these Nintendo dudes are FURIOS with this positive Sony news!! 😂😂 lol
@manu0 I don't know, seems to be in plain English if you ask me.
That's impressive
This honestly made me wet ( ͡° ͜ʖ ͡°) You won't see GameXplain report these. In fact, no YouTuber will cause none of them know how to research.
Completely don’t understand the comments on this article. One the comparison with Nintendo is a fair one as they disclose revenue and profitability. As a competitor that is doing well overall, this shows just how much PSN is worth.
It also makes complete sense to mention backwards compatibility. This includes films and other media, inc anything bought for f2play games. Of course Sony wants people to keep buying this stuff and if they locked all your past purchases behind a generation it would discourage that.
r/whoosh
In all seriousness, though, that's a good sign for Sony. Can't wait to see what happens next.
@Rudy_Manchego
I agree. This is exactly why Sony is investing and improving PSN even more for next gen. The reason is not because 'PSN is so much worse than XBL' narrative so many people try to push and completely false as demonstrated by the horrendous week xbl just had.
Sony exclusives were marketed really well last year so many PS4 gamers likely preordered them (I know I did with GoW and Spider-Cop! Also bought Detroit before the year was out) and PSN had so many sales, including good prices on Plus membership...haha, if I added up everything I spent on digital storefront sales in 2018, I'd probably have a heart attack! Hopefully Sony will deliver on the BC for PS5 like most of us expect them too, as I really don't want to have to buy a load of remasters/re-releases again! Was ok last time as I was upgrading from my main last gen console which was a 360, so the PS exclusive remasters I had mostly never played, but it would be annoying if I felt I had to buy stuff again from the same company next time (unless the graphical overhaul was significant that is).
While I don't doubt Sony did amazing this year (with amazing exclusives like GoW and Spiderman) I think a good chunk of this revolves around PS+ which I can't really say is a win since it's still a stupid market practice. Without having to pay the monthly subscription, I'd probably say that the money from the psn sales would be cut by a large portion.
That being said while probably not higher than Nintendo's entire rev of the year, I'm sure it would still be pretty dang high.
@PS_Nation
They're also doomed.
Glad to see Backwards Compatible is looking likely. Due to my backlog of games, that will well make the difference between me buying a PS5 at launch, or waiting a while.
@Knuckles-Fajita The demographics for the two consoles is different. Not to mention that Super Smash is more family friendly which gives it more of an edge in sales. Plus, the franchise has been around since the N64, so no one is really surprised by the numbers. I personally expected Smash to outsell it. Even having said that, does it really matter? Spider-Man sold 9 million last it was mentioned, and probably still is selling at a good pace.
@Morenoj1220 Eh...well they can acquire a few more studios, or they can just add on to the ones they have now. Adding more staff is in my opinion a better route, and cost less than buying out a whole studio. Plus more employees also means multiple games being developed rather than focusing on one. Guerrilla Games has jumped on that train so far.
@makoshichi I think you should probably lay off the fanboy remarks as it tends to get most banned here, and rightfully so. There's no reason to even use it and it's off topic anyway. Nothing here is fanboyism from the article. It was based on facts, and that's about it. Crazies on all ends are rampant no matter what site you visit. Being biased is not a good character flaw.
@makoshichi I'd just refrain from even responding to those comments if you feel bothered by what they say. It's just their opinion and shouldn't even really phase you. It's rare that anyone really posts anything that is within crazy territory. I've seen worse.
@InsertUsername to me I feel like they can at least acquire 2 or 3 more studios so they can be deliver more games for ps5. Just imagine if they can purchase from software and studios like platinum games or atlus. They won’t break the bank like a studio insomniac.
Not surprised at all, Sony is King.
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