Analyst Daniel Ahmad has published an analysis that demonstrates how PSN was the real engine of this generation for Sony and not hardware sales.
The analyst Daniel Ahmad has tweeted an interesting analysis, supported by graphics, which shows that it was the NDP to drive revenue and growth of PlayStation for the whole generation, not the hardware sales. It should be noted that the high number of PS4 sold has been the gateway to the PSN for millions of users, but most of the revenues have come from the digital market anyway. As is well known, hardware has extremely low profit margins.
Ahmad: “The most successful story of PlayStation in this generation has been online services (PSN). Full digital games + Add On + PlayStation Plus + PS Now have been the key to its growth since the launch of PS4. Services (PS + / PS Now = ~ 25% of the total PSN revenue in 2019. “
The PSN revenue growth chart published by Ahmad is truly impressive and perfectly reflects the idea of the revolution that has taken place in the world of video games, speaking of distribution and sale.
Ahmad continued his analysis by reporting an already known figure (released by Sony during his recent financial report): the PSN produced as much as 66% of the PlayStation revenues in 2019 .digital revenues in 2019 are eight times larger than in 2013. According to him, it is precisely this exponential growth of the PSN and related services that have definitively broken the cycles of the consoles as we knew them, not so much the launch of mid-generation hardware.