The industry - and Sony in particular - have become so obsessed with hardware and AAA blockbusters which have less substance than a Boris Johnson house party - that they have totally forgotten about value for money.
I buy less games than I have ever done before. Why? Because there is a lack of creativity and originality. There is an over-saturation of mega bucks productions that are lacking in substance and it is bringing the industry to its knees.
The prices of games is ludicrous. £60 and £70 is a disgrace. It’s pure greed but it is desperate greed. Desperation to make back the money they are losing on these huge budgets that even when selling well, they simply can’t make back.
Gaming is about to hit a brick wall. And if it does not change direction soon, it will never be what it once was ever again.
I doubt there will be many day 1 PC releases. Exclusives will still exist on PlayStation and then go to PC 18 months or so later. Xbox hardware will do one more turn and then cease in ten years time. Nintendo will always stay exclusive. Literally no need to worry about consoles going anywhere. PS and Nintendo will continue with consoles. But day one PC will be few and far between
A number of things. AI is replacing humans but that is killing creativity and imagination. Sony have been poorly managed from a basic business point of view. To have such shallow profit margins is down to bad , bad business management. Anyone with even the smallest business knowledge knows this fact.
Xbox is just bizarre. Buying up studios only to start going 3rd party. What’s the point in having an Xbox if you will ultimately get the games on PS5 anyway? It’s a strange business model and the praise that Phil Spencer gets from some is bizarre.
Greed, poor management and more greed is ultimately to blame. Sure, there are other factors such as the global economy but like the rest of us, gaming needs to learn to live within its means.
Also, be aware that should Sony lose the lawsuit which has 90,000 signatures on it in the UK, it would amount to $7.9 billion. That far outweighs the profit margins recently announced.
Sony lose that case and PlayStation is more than just trouble. I am not sure reading some of the comments on this that people are fully aware just how precarious the situation is right now.
A loss of that lawsuit would mean pretty much no 1st party games for, not just a year, but for a number of years to come. More layoffs would be all but inevitable.
Hopefully they can act and change things but I actually fear for PlayStation’s future if they are not very careful indeed.
@Ralizah This was real leadership. This was a hands up, we have made a cock up. Rather than sacking loads of staff who were not responsible for the mistakes , they took the hit.
Look at them now. They kept the creative minds and the positive energy and they won’t be moving away from exclusives any time soon!
When things go wrong you act. Sony need to act now because selling loads of hardware is great. If the profit margins are not sustainable, as the article says, you are one moment in time away from a huge problem.
@get2sammyb Hmm, that's just conjecture. MS can handle losses easier than Sony can.
The key aspect is the profit margins.
When a film is made, a budget is set and predictions made of minimum profits to make the film make enough money to do the next and so on.
What PlayStation have done is made the gap too tight. They will have to change the types and sizes of games they produce for the foreseeable future.
Releasing a PS5 Pro this year, which simply is not needed , would be financial madness. But I suspect that they will still do it and it could be that error that pushes them into the red.
@get2sammyb It depends. Loss leaders can work if marketed right. Cut £5 off a game price and sell more of that game - doesnt take long for that loss to become a healthy profit. Yes there are risks attached but looking at how Sony have been running the PlayStation business, they could do worse than this with some of the bigger games.
The issue of currency is correct as well. That's a huge impact.
@Flinch Fees for actors in the huge games have risen a lot. These could be replaced by AI but no one wants that. It’s all about poor business management. Marketing from Sony is everywhere. Yes it’s sold them lots of consoles but you can’t sustain that. They’ve spent big to sell hardware but let their margins evaporate. Xbox was supposedly dead a week ago. It’s far from dead and PlayStation needs to change it will be they who become the next Sega.
Nintendo are doing just fine and they will be keeping their exclusives. This is about spending too much on game budgets but also about appalling business management.
And Sony want to bring out a PS5 Pro?!! It will sell fine but will only make the profit margins even tighter!!
Who do they have making these decisions? It’s madness. Anyone who knows even the tiniest bit about business can see that , whilst PlayStation sells well, it’s going to have to cut huge corners to avoid imploding altogether.
This is all caused by greed and totally mismanagement.
All the talk recently has been around the death of Xbox , yet in reality, Xbox is not the one that is anywhere near its grave right now.
If the industry keeps going the way it is, it will eventually implode in on itself. It’s gotten out of control. Sony are at the point where they will soon be haemorrhaging money if they don’t act. Xbox is clearly going multi platform despite its recent announcements. Only Nintendo has manageable profit margins and they are still flogging the Switch with little interest in updating it anytime soon it seems. Mergers, takeovers, lack of willingness to collaborate have all led to the industry becoming more and more toxic ever day. Jobs being cut in favour of AI is disgraceful and not ethical.
We have a multi billion pound industry that has been badly managed and badly run and now it stands facing into a fire.
We should be under no illusions that gaming is on a precipice of disaster. It’s so close to hitting the red button.
People need to stop worrying about what consoles have what games and actually consider just what an absolute mess the industry finds itself in.
Those margins are tiny. PlayStation is on the precipice of a financial distaster. You can have the high revenue, but if your margins are this low, you are one small step from entering the red and finding yourself very close to game over territory. Worrying that they haven’t got that margin bigger.
@PsBoxSwitchOwner With COD alone they will bring in even more money with it being on PE5. In fact they will bring in more money from the PS5 version than Xbox. That’s why they will bring more games to more platforms. It’s all about money. And nothing else.
@cragis0001 This is the key point and really the only point. If they keep Game Pass and make consoles then fine. If they put game pass onto PS5 - they won’t as Sony won’t allow it for a start - then yes, that would make Xbox consoles pointless.
@Yozora146_ MS gaming revenue is now bringing in more money than Windows. Whether they make more consoles or not, gaming will be one of the biggest areas for MS now and in the future. How they go about it we will see but I suspect we will hear very little this week at all. A quick update to confirm the new all digital Series X and confirmation of Hi Fi Rush and SoT coming to PE5. And that will be it.
Not for me as I already have a Logitech G Cloud but The #PlayStation brand is unstoppable now IMHO. The loyalty and the strength is crazy. You could sell a pencil case for £200 if it had a #PlayStation logo and fans would buy it. They have obliterated #Xbox and I can’t see any way back. Not now, not in twenty years.
Been playing on my mates since yesterday and today and I’m really not impressed. Looks nice enough and good feel but far too much lag. Will sell well but just not worth it.
I don’t see how Xbox can keep this going. They are floundering with console sales , GamePass subs and even cloud usage. Even the Acti/Blizz deal isn’t enough I don’t think.
The Xbox model is simply only sustainable due to their deep pockets. Game Pass has nowhere near as many subscribers as Nintendo online - a service on a nearly 7 year old console! That’s actually ridiculous. The notion that COD on Game Pass will suddenly make people buy an XBSX/S eventually isn’t going to work. Sure, via PC they may pick up more subs but even the Acti/Blizzard deal isn’t guaranteed to change the momentum now. Xbox May as well go Cloud only asap tbh.
They are a total mess and I play Xbox! We will then have the new Switch and I can only see sales tor Xbox deteriorating even more.
@sammy just to clarify as per PlayStation themselves / it can ne used anywhere with a wi fo connection or 4G 5G etc. Many have reported that this can only be played at home. Which is false.
And it CAN be played anywhere with wi fi. I have seen many saying it can only be played at home on the same network as your wi fi and this is NOT true! Just read the PlayStation website where it is clear that it can be played anywhere!
@StonyKL exactly - if Xbox want to make gaming more accessible and it’s at their cost, that’s not for me to worry about. We all know that Xbox is going down the cloud route and it’s not a secret. Never was. Also leaks are never accidental. Ever. Usually PR ‘accidents.’
Sony goes on to note games that are streamed through PS Plus Premium are not supported on PlayStation Portal. The same is true of PSVR2 titles, but that was obviously expected.
What I don’t get with Xbox is why they don’t advertise it in the UK. I see maybe one Xbox advert every few months whereas PlayStation ads there up to ten a day, especially on certain channels.
You can’t sell something if you don’t market it. Bizarre strategy
@Powerplay94 Also, cloud is the lowest used Xbox feature. Now that should be a huge concern for them. Huge. Because any day now. Sony will announce their cloud service and if Sony gets ahead on that , Xbox really are up gaming Schitt creek without a paddle!
@ChrisDeku MS will be fine as they have deep pockets. Nintendo is focused on its exclusives and always will be. You will never see Nintendo games like Mario on another console. Won’t happen. Xbox are focused on having as many people as possible playing games through Game Pass. The fact that their cloud infrastructure is so strong and play so well makes owning an Xbox redundant. So that’s where they have ***** themselves in the foot from a console point of view. But MS isn’t going to drop out of the gaming scene any time soon. And I still wouldn’t be at all surprised if Game Pass turns up on the next Nintendo console.
@Neverwild It’s selling because of the brand name. I can’t say that this gen, the PS5 is blowing me away with its line up and I have both Xbox and PS5. It’s selling due to brand loyalty and that’s a huge success for Sony. Huge.
@REALAIS when did I say it was better?! I said that Xbox was more user friendly and PS isn’t better. I didn’t say Xbox was better. Big difference. There are more games available on Xbox overall. Backwards comparable is better, I will say that. Be careful not twist someone’s words because its not clever and certainly not acceptable behaviour. I can agree to disagree but I don’t accept my words being twisted. Ever.
Comments 137
Re: Reaction: What Is Happening to the Video Games Industry and Why Are There So Many Layoffs?
The industry - and Sony in particular - have become so obsessed with hardware and AAA blockbusters which have less substance than a Boris Johnson house party - that they have totally forgotten about value for money.
I buy less games than I have ever done before. Why? Because there is a lack of creativity and originality. There is an over-saturation of mega bucks productions that are lacking in substance and it is bringing the industry to its knees.
The prices of games is ludicrous. £60 and £70 is a disgrace. It’s pure greed but it is desperate greed. Desperation to make back the money they are losing on these huge budgets that even when selling well, they simply can’t make back.
Gaming is about to hit a brick wall. And if it does not change direction soon, it will never be what it once was ever again.
Re: Ghost of Tsushima Director's Cut Finally Confirmed for PC, Launches This May
I doubt there will be many day 1 PC releases. Exclusives will still exist on PlayStation and then go to PC 18 months or so later.
Xbox hardware will do one more turn and then cease in ten years time.
Nintendo will always stay exclusive.
Literally no need to worry about consoles going anywhere. PS and Nintendo will continue with consoles.
But day one PC will be few and far between
Re: Reaction: What Is Happening to the Video Games Industry and Why Are There So Many Layoffs?
A number of things. AI is replacing humans but that is killing creativity and imagination.
Sony have been poorly managed from a basic business point of view. To have such shallow profit margins is down to bad , bad business management. Anyone with even the smallest business knowledge knows this fact.
Xbox is just bizarre. Buying up studios only to start going 3rd party. What’s the point in having an Xbox if you will ultimately get the games on PS5 anyway? It’s a strange business model and the praise that Phil Spencer gets from some is bizarre.
Greed, poor management and more greed is ultimately to blame. Sure, there are other factors such as the global economy but like the rest of us, gaming needs to learn to live within its means.
Re: Poll: Are You Happy with Your PS Plus Essential Games for March 2024?
Pretty poor. Yet again.
Re: Reaction: The Problem with PlayStation Right Now
And now more layoffs at EA
The industry is in huge trouble
Re: Reaction: The Problem with PlayStation Right Now
Also, be aware that should Sony lose the lawsuit which has 90,000 signatures on it in the UK, it would amount to $7.9 billion.
That far outweighs the profit margins recently announced.
Sony lose that case and PlayStation is more than just trouble. I am not sure reading some of the comments on this that people are fully aware just how precarious the situation is right now.
A loss of that lawsuit would mean pretty much no 1st party games for, not just a year, but for a number of years to come. More layoffs would be all but inevitable.
Hopefully they can act and change things but I actually fear for PlayStation’s future if they are not very careful indeed.
Re: Reaction: The Problem with PlayStation Right Now
@Ralizah This was real leadership. This was a hands up, we have made a cock up. Rather than sacking loads of staff who were not responsible for the mistakes , they took the hit.
Look at them now. They kept the creative minds and the positive energy and they won’t be moving away from exclusives any time soon!
When things go wrong you act. Sony need to act now because selling loads of hardware is great. If the profit margins are not sustainable, as the article says, you are one moment in time away from a huge problem.
Re: Reaction: The Problem with PlayStation Right Now
@get2sammyb Hmm, that's just conjecture. MS can handle losses easier than Sony can.
The key aspect is the profit margins.
When a film is made, a budget is set and predictions made of minimum profits to make the film make enough money to do the next and so on.
What PlayStation have done is made the gap too tight. They will have to change the types and sizes of games they produce for the foreseeable future.
Releasing a PS5 Pro this year, which simply is not needed , would be financial madness. But I suspect that they will still do it and it could be that error that pushes them into the red.
Dangerous game being played.
Re: Reaction: The Problem with PlayStation Right Now
@get2sammyb It depends. Loss leaders can work if marketed right. Cut £5 off a game price and sell more of that game - doesnt take long for that loss to become a healthy profit.
Yes there are risks attached but looking at how Sony have been running the PlayStation business, they could do worse than this with some of the bigger games.
The issue of currency is correct as well. That's a huge impact.
Re: Reaction: The Problem with PlayStation Right Now
@ZhuckelDror True enough.
Re: Reaction: The Problem with PlayStation Right Now
@ZhuckelDror PlayStation needs to change otherwise it will be. If those margins drop into negatives , they are totally f00ked.
Re: Reaction: The Problem with PlayStation Right Now
@Flinch Fees for actors in the huge games have risen a lot. These could be replaced by AI but no one wants that.
It’s all about poor business management. Marketing from Sony is everywhere. Yes it’s sold them lots of consoles but you can’t sustain that.
They’ve spent big to sell hardware but let their margins evaporate.
Xbox was supposedly dead a week ago. It’s far from dead and PlayStation needs to change it will be they who become the next Sega.
Re: Reaction: The Problem with PlayStation Right Now
Nintendo are doing just fine and they will be keeping their exclusives.
This is about spending too much on game budgets but also about appalling business management.
And Sony want to bring out a PS5 Pro?!! It will sell fine but will only make the profit margins even tighter!!
Who do they have making these decisions? It’s madness. Anyone who knows even the tiniest bit about business can see that , whilst PlayStation sells well, it’s going to have to cut huge corners to avoid imploding altogether.
This is all caused by greed and totally mismanagement.
All the talk recently has been around the death of Xbox , yet in reality, Xbox is not the one that is anywhere near its grave right now.
Sony must change and change quickly.
Re: 900 PlayStation Employees Laid Off, London Studio Closed
The industry is on its knees due to greed, overinflated gaming budgets and poor management.
It’s an absolute mess
Re: Baldur's Gate 3 Devs Call Out State of the Industry from DICE Awards Stage
@GeminiReign I hope not but if things don’t change soon, that’s where we are headed.
Re: Baldur's Gate 3 Devs Call Out State of the Industry from DICE Awards Stage
If the industry keeps going the way it is, it will eventually implode in on itself. It’s gotten out of control.
Sony are at the point where they will soon be haemorrhaging money if they don’t act. Xbox is clearly going multi platform despite its recent announcements. Only Nintendo has manageable profit margins and they are still flogging the Switch with little interest in updating it anytime soon it seems.
Mergers, takeovers, lack of willingness to collaborate have all led to the industry becoming more and more toxic ever day.
Jobs being cut in favour of AI is disgraceful and not ethical.
We have a multi billion pound industry that has been badly managed and badly run and now it stands facing into a fire.
We should be under no illusions that gaming is on a precipice of disaster. It’s so close to hitting the red button.
People need to stop worrying about what consoles have what games and actually consider just what an absolute mess the industry finds itself in.
Warnings need to be heeded.
Re: Xbox Has Allegedly Insisted It Won't Stop Making Consoles, As PS5 Port Rumours Mount
@cragis0001
https://mattjarviswriting.wixsite.com/mjjmedia/post/is-gaming-doing-as-well-as-we-think
Re: Sony Slashes PS5 Forecast to 21 Million for Fiscal Year
Those margins are tiny. PlayStation is on the precipice of a financial distaster.
You can have the high revenue, but if your margins are this low, you are one small step from entering the red and finding yourself very close to game over territory.
Worrying that they haven’t got that margin bigger.
Re: Turbo Golf Racing Is a Rocket League-Style Arcade Sports Hybrid Hitting PS5 in 2024
It’s a great game. Really chaotic fun. Glad it’s coming to PS5
Re: Xbox Has Allegedly Insisted It Won't Stop Making Consoles, As PS5 Port Rumours Mount
@PsBoxSwitchOwner With COD alone they will bring in even more money with it being on PE5. In fact they will bring in more money from the PS5 version than Xbox.
That’s why they will bring more games to more platforms.
It’s all about money. And nothing else.
Re: Xbox Has Allegedly Insisted It Won't Stop Making Consoles, As PS5 Port Rumours Mount
@cragis0001 This is the key point and really the only point. If they keep Game Pass and make consoles then fine. If they put game pass onto PS5 - they won’t as Sony won’t allow it for a start - then yes, that would make Xbox consoles pointless.
Re: Xbox Has Allegedly Insisted It Won't Stop Making Consoles, As PS5 Port Rumours Mount
@Yozora146_ MS gaming revenue is now bringing in more money than Windows.
Whether they make more consoles or not, gaming will be one of the biggest areas for MS now and in the future.
How they go about it we will see but I suspect we will hear very little this week at all.
A quick update to confirm the new all digital Series X and confirmation of Hi Fi Rush and SoT coming to PE5.
And that will be it.
Re: Elden Ring Is Allegedly Getting a Smartphone Adaptation
Please God no.
Re: Poll: Did You Buy a PS Portal?
Not for me as I already have a Logitech G Cloud but The #PlayStation brand is unstoppable now IMHO. The loyalty and the strength is crazy.
You could sell a pencil case for £200 if it had a #PlayStation logo and fans would buy it.
They have obliterated #Xbox and I can’t see any way back. Not now, not in twenty years.
Re: Poll: Did You Buy a PS Portal?
Been playing on my mates since yesterday and today and I’m really not impressed.
Looks nice enough and good feel but far too much lag.
Will sell well but just not worth it.
Re: Japan Sales Charts: PS5 Rockets to the Top as 'Slim' Model Arrives
@Sakai Yeah I guess but it’s still grim really. And n US and Europe they are struggling.
Re: Japan Sales Charts: PS5 Rockets to the Top as 'Slim' Model Arrives
I don’t see how Xbox can keep this going. They are floundering with console sales , GamePass subs and even cloud usage.
Even the Acti/Blizz deal isn’t enough I don’t think.
Re: Sony Says PS Portal Wasn't Designed to Make a Profit
Whatever people may like or dislike about it, it’s sold our everywhere.
Re: PS5 Is Now Above PS4 in USA, While Its New-Gen Rival Flounders
The Xbox model is simply only sustainable due to their deep pockets.
Game Pass has nowhere near as many subscribers as Nintendo online - a service on a nearly 7 year old console! That’s actually ridiculous.
The notion that COD on Game Pass will suddenly make people buy an XBSX/S eventually isn’t going to work.
Sure, via PC they may pick up more subs but even the Acti/Blizzard deal isn’t guaranteed to change the momentum now.
Xbox May as well go Cloud only asap tbh.
They are a total mess and I play Xbox! We will then have the new Switch and I can only see sales tor Xbox deteriorating even more.
Re: PS5 Slim Officially Unveiled, Attachable Disc Drive, Launches November
@Pranwell I won’t.
Re: PS5 Slim Officially Unveiled, Attachable Disc Drive, Launches November
PlayStation - The most expensive way to play.
Re: PS5's Remote Play Handheld PS Portal Releases on 15th November
@sammy just to clarify as per PlayStation themselves / it can ne used anywhere with a wi fo connection or 4G 5G etc.
Many have reported that this can only be played at home. Which is false.
Re: PlayStation Portal Is Sony's PS5 Remote Play Handheld, Priced at $200 / £200
And it CAN be played anywhere with wi fi. I have seen many saying it can only be played at home on the same network as your wi fi and this is NOT true! Just read the PlayStation website where it is clear that it can be played anywhere!
Re: PlayStation's 2024 Release Schedule Is Already a Joke
So where are all these exclusives that PlayStation has that Xbox doesn’t?
Re: Xbox Documents Reveal Staggering Cost of Bringing Games to Game Pass, PS Plus
@StonyKL exactly - if Xbox want to make gaming more accessible and it’s at their cost, that’s not for me to worry about. We all know that Xbox is going down the cloud route and it’s not a secret. Never was.
Also leaks are never accidental. Ever. Usually PR ‘accidents.’
Re: Xbox Documents Reveal Staggering Cost of Bringing Games to Game Pass, PS Plus
@RedShirtRod exactly!!!
Re: Xbox Documents Reveal Staggering Cost of Bringing Games to Game Pass, PS Plus
@BusyOlf The Nintendo news is so old. And dull. It’s not new news.
Re: Apple Insinuates iPhone 15 Pro Will Be a Better Games Console Than PS5, PS4
April 1st comes round quick
Re: What Time Is PlayStation's State of Play?
Can we all stop using the phrase ‘next gen.’ Next gen was when we went from 8 to 16 bit, 16 to 32 etc.
We are now just in the world of PC style upgrades. Next Gen is old hat.
Re: What Time Is PlayStation's State of Play?
I suspect there won’t be anywhere near as much gaming to see as in the Nintendo Direct.
Re: Poll: Are You Sold on PlayStation Portal?
If you have more money sense then I’m sure this will appeal. Other than that, I’m sure it’s just a very late April Fools joke.
Re: PS Portal's Battery Life Aiming to Match PS5 Controller
Is the Portal an April Fool? I mean seriously?
Re: PlayStation Portal Is Sony's PS5 Remote Play Handheld, Priced at $200 / £200
Sony goes on to note games that are streamed through PS Plus Premium are not supported on PlayStation Portal. The same is true of PSVR2 titles, but that was obviously expected.
Well that’s sh1te!
Re: PS5 Sales Surge a Frankly Flabbergasting 244% in Europe
What I don’t get with Xbox is why they don’t advertise it in the UK. I see maybe one Xbox advert every few months whereas PlayStation ads there up to ten a day, especially on certain channels.
You can’t sell something if you don’t market it. Bizarre strategy
Re: PS5 Sales Surge a Frankly Flabbergasting 244% in Europe
@Powerplay94 Also, cloud is the lowest used Xbox feature. Now that should be a huge concern for them. Huge. Because any day now. Sony will announce their cloud service and if Sony gets ahead on that , Xbox really are up gaming Schitt creek without a paddle!
Re: PS5 Sales Surge a Frankly Flabbergasting 244% in Europe
@Powerplay94 Pretty much that.
Re: PS5 Sales Surge a Frankly Flabbergasting 244% in Europe
@ChrisDeku MS will be fine as they have deep pockets. Nintendo is focused on its exclusives and always will be. You will never see Nintendo games like Mario on another console. Won’t happen. Xbox are focused on having as many people as possible playing games through Game Pass.
The fact that their cloud infrastructure is so strong and play so well makes owning an Xbox redundant. So that’s where they have ***** themselves in the foot from a console point of view. But MS isn’t going to drop out of the gaming scene any time soon. And I still wouldn’t be at all surprised if Game Pass turns up on the next Nintendo console.
Re: PS5 Sales Surge a Frankly Flabbergasting 244% in Europe
@Neverwild It’s selling because of the brand name. I can’t say that this gen, the PS5 is blowing me away with its line up and I have both Xbox and PS5. It’s selling due to brand loyalty and that’s a huge success for Sony. Huge.
Re: PS5 Sales Surge a Frankly Flabbergasting 244% in Europe
@REALAIS I couldn’t care less about PRO mid gen updates. They are just released for greeds sake.
Re: PS5 Sales Surge a Frankly Flabbergasting 244% in Europe
@REALAIS when did I say it was better?! I said that Xbox was more user friendly and PS isn’t better. I didn’t say Xbox was better. Big difference. There are more games available on Xbox overall. Backwards comparable is better, I will say that. Be careful not twist someone’s words because its not clever and certainly not acceptable behaviour. I can agree to disagree but I don’t accept my words being twisted. Ever.