Multiplayer on PS4 requires a PlayStation Plus subscription and analyst Piers Harding-Rolls of IHS Electronics and Media believes the decision to charge will pay off for Sony with the company fetching as much as $1.2 billion from subscription fees by 2017.
In a statement sent to VG24/7 Harding-Rolls said:
“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.”
According to IHS PS Plus subscriptions have earned Sony $140 million to date as it is not currently requirement for online play.
“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.”
The analyst expects the PS4 and its Plus requirements to be significant revenue drivers for Sony.
“Sony is positioning itself to deliver its most profitable PlayStation business since the launch of the PlayStation 3," the statement adds.
“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.”
Online play will continue to be free on PS3 and PS Vita. Unlike Xbox 360 and Xbox One, entertainment apps and free-to-play games will not require a paid subcription on PS4.
