Sony's PS Grew Over 40% for 5 Straight Years - Ultimate Guide
Sony's PS Grew Over 40% for 5 Straight Years
Sony has been quite committed to the expansion of PS Now. So much so that last year expanded its service to nine new countries reaching a total of 19 countries. as incredible as the company sounds is now transmitting more than 750 games of PS3 and PS4 to PS4 consoles and PC with Windows.The company also added a download service, which makes life easier for users who have more punctual Internet connections, as they can now download games instead of transmitting them, and this is possible since last month of September. Sony knows from its statistics that users now spend twice as much time on downloaded games as on streaming games. Increasing levels of menbresias and engagement rates indicate that PS Now on the top line of the GN&S unit and it is very likely that it could increase significantly over time.
An important event a bit away from the subject is that both Sony's PS4 and Microsoft's Xbox One have been on the market for more than 5 years and although both consoles after their releases have been updated with smaller form factors and updated hardware, the market was simply saturated. For an answer to this Sony and Microsoft are concentrating their work on expanding their software ecosystems and thus get more revenue per player.
Last year Sony's GN&S total revenue rose to reach a 19% increase with the fact that software sales were higher and there was a growth in the number of PlayStation Plus subscribers, which these events compensated for the increase in hardware sales. Microsoft's revenues last quarter were not very different from these in fact, reached a 31% increase in sales of software and services, which offset the low revenues from hardware sales.
This reality shows that there is a high probability that cloud games, which many people call "Netflix for videogames", will be very lucrative and profitable in the long run. If both Sony and Microsoft can get players to use subscriptions constantly with on-demand access for video games, companies could become less dependent in the long run on hardware sales revenue.
In the event that the tiresome in the future become obsolete PlayStation and Xbox technology, they could earn comfortable revenues from video game applications stored in the cloud, and be used in decoders, smart TVs and perhaps other new devices. Sony has long since been concerned about this highly probable future forecast acquired Gaikai, the cloud platform that would finally become PS Now in 2012.
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