PlayStation Plus PS4 paywall will make Sony over one billion in membership fees
- Posted August 15th, 2013 at 07:27 EDT by Michael Harradence
Sony is set to rake in a whopping $1.2 billion by 2017 as a result of PlayStation Plus membership fees on PlayStation 4, IHS Electronics and Media has stated.
The analyst firm said in a statement (via VG247) that the console maker’s decision to charge for online gaming on its next-generation console has put itself on the road to profitability.
“While this battle to engage publishers and consumers ensues, Sony has already taken a major step towards a more profitable and competitive PlayStation business with a single but significant commercial decision to place online multiplayer gaming behind the PlayStation Plus subscription paywall.
“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.”
Sony has earned $140 million from PS Plus memberships to date, though at present it is not required in order to enjoy online gaming. This is in contrast to Microsoft’s Xbox 360, which requires users sign up for Xbox LIVE Gold to game online.
“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 firm added.
“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 painted a rosy outlook for PS4, believing the high-end games machine will see a return to form for Sony.
“Sony is positioning itself to deliver its most profitable PlayStation business since the launch of the PlayStation 3,” it added.
“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.”
What do you think of Sony’s decision to charge for online gaming? Are you already a member of PS Plus and therefore are happy to continue paying for the premium service? Sound off in the comments section below.