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access_time August 15, 2013 at 12:59 PM in News by Dragos Dobre

PlayStation Plus paywall to net Sony $1.2 billion a year

If you thought the main way for any console maker to make big chunks of money is by selling a lot of consoles, you could not be more wrong. One of the main reason being that online stores have always supported both Microsoft and Sony in previous generation consoles, as the production often costs more than the retail price of a console. Amazing, right?

So, we’ve always wondered how much Sony will have to gain for PlayStation Plus membership. And, well, now we know!

In a statement sent to VG247 this morning, IHS analyst Piers Harding-Rolls revealed some pretty amazing numbers regarding Sony’s possible future earnings.

“IHS forecasts that Sony’s change in strategy will help generate $1.2bn in annual consumer spending on PlayStation Plus subscriptions by 2017 and will give Sony access to an essential and substantial new revenue stream, one which Microsoft has enjoyed since the launch of Xbox Live way back in 2002.” he said.

“In contrast, Microsoft Xbox Live users, who only have access to online multiplayer gaming through Gold accounts, spent nine times as much – $1.25 billion – on service subscriptions in 2012,” the statement continues.

“And since the launch of Xbox Live in 2002, total spending on Xbox Live subscriptions has reached a very substantial $4.7 billion. Over the past decade, the revenue derived from this spending has enabled Microsoft to invest in and build a world-class online platform and digital content service, allowing the company to stay ahead of its console competitors.”

“IHS believes that lower research and development costs for PlayStation 4 hardware, additional revenue streams from online service subscriptions and a more aggressive transition to higher margin digital content sales are combining to strengthen Sony’s games business outlook even in the face of increased competition from cheap Android consoles and alternative devices eating into consumers’ gaming time, including smartphones and tablets.”

With the launch of PlayStation 4, Sony will introduce for the first time the requirement of PlayStation Plus membership in order to play online. Will it be a good move for them or will they have to lose due to this decision?


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