Sony had their Investor Relations Day, which sounds like an opportunity to eat fancy food and have SCE boss Andrew House give interesting quotes. We found out that PlayStation is dominating in Middle Eastern and German markets, but Sony wants much, much more.
While the Middle East PS4 adoption has been four times that of any previously launched console, and Germany is also showing signs of moving from PC gaming to console, House explained that there are also plans to expand the PlayStation brand in general and PlayStation Plus as well.
Regarding PlayStation Plus, the plans are threefold:
- Strengthening the online multiplayer line-up to drive adoption of the subscription and membership service
- Strengthening the free content delivered to subscribers every month, increasing the value of their subscription package
- Enhancing the community-based features of PlayStation Plus, to make it appealing not just to core gamers, but also to a broader audience
I particularly like that second point. PlayStation Plus has quadrupled in membership since the launch of PS4. While it has one of the highest margins of all the businesses for Sony, House explained that they are committed to offering increasing services, including prioritized access to alpha and beta games.
House explained to investors that the PlayStation ecosystem is the core asset for the Game and Network Services part of Sony, and that the strategy in the mid term is “Bigger, Stronger and Better”.
Sony Computer Entertainment intends to be “bigger” with an increased user base of highly engaged users, to be “stronger” by strengthening the competitive appeal of Sony’s platforms, and “better” in terms of the diversity, the quality and the innovation of the offered services.
Sony Computer Entertainment has adopted the RPPU (Revenue per Paying User) as a metric to measure the business, rather than doing the hardware vs software ratio. This should help them look more holistically at the business, and help them focus on increasing value. House concluded by promising that growth targets will be achieved by increasing profit through the expansion of PlayStation users providing “compelling and cutting-edge” game and network experiences.
I’m glad that Sony is basically using a Daft Punk song to guide their strategy, but it does sound good. At least they want to boost our experiences, not just milk us for more money. Obviously they want more of our money, but at least they’re being clever in how they will go about doing it.
Last Updated: November 25, 2014