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Sony President indicates desire to "aggressively" improve margins by releasing first-party titles to other platforms


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From Genki_JPN:

 

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Sony President Hiroki Totoki says he wants to go aggressive in improving margins by growing 1st party with multi-platform #PlayStation

 

“In the past, we wanted to popularize console and the 1st party titles' main purpose was to make the console popular. It is true, but there is a synergy to it. So if you have strong first party content, not only with our console but also other platforms like computers, 1st party can be grown with multiplatform and that can help operating profit to improve. So that is another one we want to proactively work on.

 

I personally think there are opportunities out there for improvement of margins, so I would like to go aggressive in improving our margin performance.” - Hiroki Totoki

 

 

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11 minutes ago, crispy4000 said:

Is this a strategy change, or just referencing what they've already done on PC?

I read this as "just a quick note" while y'all are busy watching Xbox fans freak out, we're pretty much doing the same thing as them, thanks, K, bye! :sun:

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7 minutes ago, Mr.Vic20 said:

I read this as "just a quick note" while y'all are busy watching Xbox fans freak out, we're pretty much doing the same thing as them, thanks, K, bye! :sun:

 

Could be.  But it'd be awfully dumb to give Microsoft's their competitive mojo back like this.  There's no guarantees for Sony keeping the lead in future generations.

 

30 minutes ago, best3444 said:

Besides fuckin Nintendo. 

 

Can't hate on them for being the smart ones at the table.

 

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20 minutes ago, crispy4000 said:

 

Could be.  But it'd be awfully dumb to give Microsoft's their competitive mojo back like this.  There's no guarantees for Sony keeping the lead in future generations.

 

 

Can't hate on them for being the smart ones at the table.

 

 

Who said anything about hate, lol? Nintendo is brilliant and can't be stopped!

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Aside from Valve, Nintendo does seem to be looking like the wisest gambler in this game. With AAA being a high risk preposition, Staying behind the tech curve and pumping out quality N content while allow the ever burgeoning indie scene to fill out the rest of their roster seems like a pretty business savvy strategy with much lower stakes per release. 

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3 minutes ago, Mr.Vic20 said:

Aside from Valve, Nintendo does seem to be looking like the wisest gambler in this game. With AAA being a high risk preposition, Staying behind the tech curve and pumping out quality N content while allow the ever burgeoning indie scene to fill out the rest of their roster seems like a pretty business savvy strategy with much lower stakes per release. 

 

They really got their shit together after the WiiU. It's the Nintendo of old now...like in the SNES days. 

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Just now, best3444 said:

 

They really got their shit together after the WiiU. It's the Nintendo of old now...like in the SNES days. 

Let's just hope they don't pull a Nintendo and make a totally different form factor/function for the next system simply because they want to surprise us. The Switch is a really sweet form factor and I'd like them to stick with it. All the rumors seem to indicate a switch with some tweaks, so here's hoping! 

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I can see live service or smaller games like Helldivers 2 releasing on PC day and date but I doubt it’s big AAA single player games will.  The best margins are on its own platform. I think the most likely outcome is a one year exclusive window. 

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1 minute ago, Mr.Vic20 said:

Let's just hope they don't pull a Nintendo and make a totally different form factor/function for the next system simply because they want to surprise us. The Switch is a really sweet form factor and I'd like them to stick with it. All the rumors seem to indicate a switch with some tweaks, so here's hoping! 

 

I absolutely agree and there are too many rumors that it truly is an advanced Switch. So it's going to be awesome. 

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  • Commissar SFLUFAN changed the title to Sony President indicates desires to more "aggressively" improve margins by releasing first-party titles to other platforms
25 minutes ago, Mr.Vic20 said:

Aside from Valve, Nintendo does seem to be looking like the wisest gambler in this game. With AAA being a high risk preposition, Staying behind the tech curve and pumping out quality N content while allow the ever burgeoning indie scene to fill out the rest of their roster seems like a pretty business savvy strategy with much lower stakes per release. 

 

Nintendo's success boils down to these three things:

 

Cost Control
Cost Control

Cost Control

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Just now, AbsolutSurgen said:

Am I misinterpreting this?  All I read is that they will continue to publish games on computers.

 

He uses the generic term as "multiplatform", so it could be interpreted as other consoles.  But it doesn't have to.

 

Or, am I missing something?

 

You're correct in the sense that's the textual meaning of what was said, but the subtext could very well be that Sony will narrow and/or eliminate the gap between the first-party releases on the console and the release on the PC.

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1 hour ago, crispy4000 said:

Is this a strategy change, or just referencing what they've already done on PC?


yeah I read it as him meaning PC when he says other platforms. No way we are approaching some socialistic utopia of console gaming where exclusives from Sony and Xbox dont exist and the games are shared unequivocally. 
 

3 minutes ago, Commissar SFLUFAN said:

 

Nintendo's success boils down to these three things:

 

Cost Control
Cost Control

Cost Control


Yeah, for at least 30 years, I dont think theyve ever released a hardware where they were taking a loss on each unit sold. 

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Just now, Commissar SFLUFAN said:

 

You're correct in the sense that's the textual meaning of what was said, but the subtext could very well be that Sony will narrow and/or eliminate the gap between the first-party releases on the console and the release on the PC.

My impression was that they had already said they were trying to release more ports, and release them earlier.

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5 minutes ago, Commissar SFLUFAN said:

 

Nintendo's success boils down to these three things:

 

Cost Control
Cost Control

Cost Control

In a way.  They have a very specific vision of their target market -- and are executing on it.

There are others that are targeting similar demographics in other ways -- i.e. the rise of Roblox.

But, they have found a niche that is willing to pay AAA money for games that are significantly reduced in scope.

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6 minutes ago, Commissar SFLUFAN said:

 

Nintendo's success boils down to these three things:

 

Cost Control
Cost Control

Cost Control

Not expanding outside of Japan in any material way was a big decision especially during the time when you saw Sony, SE and Capcom do it.  SE and Capcom has both backtracks that decision. 
 

Plus Nintendo has really nailed the design with budget in mind for their franchises.  They clearly have a more realistic approach to game projections and budget accordingly. You never hear “XXX sold 5 million copies but it’s below our forecast and disappointing.”

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2 minutes ago, Commissar SFLUFAN said:

 

It doesn't sell consoles, but it certainly helps to mitigate the "break-even" pressure when it comes to overall sales volume.


I’m sure Nintendo felt plenty of pressure to drop the Wii U.  If it doesn’t sell well enough, the games won’t either.

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1 minute ago, crispy4000 said:


I’m sure Nintendo felt plenty of pressure to drop the Wii U.  If it doesn’t sell well enough, the games won’t either.

The Wii U had a lot of cost associated with a feature that provided very little benefit.  I think Nintendo learned a lot from it.

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2 minutes ago, Biggie said:

Nintendo has games/makes games that millions of people enjoy. Iconic characters that are recognized world wide. 


Which is the argument that @crispy4000 is making and he's absolutely correct.

 

However, the emphasis that Nintendo places on the rationalization of development costs for both its consoles and its software is one that -- as someone in the accounting department and not the marketing department -- I simply cannot ignore! :p

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8 minutes ago, Biggie said:

Nintendo has games/makes games that millions of people enjoy. Iconic characters that are recognized world wide. 


Yes, people recognized Mario and co on the cover of New Super Mario Bros U at launch.  And Mario Kart 8 too a little later on.

 

It took the Switch for people to actually buy these games en masse.

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4 minutes ago, Commissar SFLUFAN said:


Which is the argument that @crispy4000 is making and he's absolutely correct.

 

However, the emphasis that Nintendo places on the rationalization of development costs for both its consoles and its software is one that -- as someone in the accounting department and not the marketing department -- I simply cannot ignore! :p


It’s definitely not my argument that the characters are the system sellers.  If anything, that’s probably more true for Pokemon than Nintendo’s other mainstay brands.

 

The games and hardware have to be appealing and exciting.  There is no easy coast mode for Nintendo at the start of a generation.

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9 minutes ago, AbsolutSurgen said:

The Wii U had a lot of cost associated with a feature that provided very little benefit.  I think Nintendo learned a lot from it.


It did, but even the 3DS had a rough start with a more marketable feature (glassless 3D) because the 1st party games weren’t there in any meaningful way.

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11 minutes ago, crispy4000 said:


Yes, people recognized Mario and co on the cover of New Super Mario Bros U at launch.  And Mario Kart 8 too a little later on.

 

It took the Switch for people to actually buy these games en masse.

 

I mean, Mario Kart 8 did sell like 8.5m  copies on the Wii U. Sure, nowhere near 60m copies it's sold in the Switch, but I don't think Nintendo considers 8.5m sold for any of their games not a success.

 

That's kind of the thing with Nintendo. More than most other publishers, they do a great job keeping their expectations in check and budgeting accordingly.

 

I wish Nintendo shared game budgets. I'd love to know how much a big JRPG like Xenoblade Chronicles cost to make.

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I remember when Ubisoft reported that Nintendo told them releasing a second Mario and Rabbids game was a mistake in the same generation and they should have waited. Nintendo was right and the game sold poorly even though it’s way better than the first. There is no company in this segment that knows its market better than Nintendo at the moment 

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