Monday, 2 August 2010

PlayStation Plus Needs 2-3 Million To Be Profitable

Industry analyst Michael Pachter has shared his view that PlayStation Plus will need to gain somewhere between 2 and 3 million subscribers before it becomes profitable. Pachter compared the service to that of Xbox Live, which was a slow starter until extra services such as Netflix were introduced
“Sony is already spending the money on PlayStation Network, so layering on a new group of users paying it for a service will be profitable."

“PlayStation Plus will take a while to get up to the same level as Xbox Live and I think you will see around 1 million subscribers early on, which amounts to around $50 million in profit.”

“What this means is the PlayStation Network as a whole will not become profitable, as I’m guessing it costs Sony about a couple-of-hundred-million a year to maintain. What Sony will be hoping is the new service drives people to download more movies and games and therefore bring in more money."

“I think for Sony to make a profit on the PlayStation Network, it will need at least 2-3 million PlayStation Plus subscribers within the next two years.”

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