×

PlayStation Now Has 700,000 Users, Use Contributed to Sony’s Increase in Sales

PlayStation Now’s continued growth was one of the factors that led to Sony’s ¥2.3 trillion yen ($20.7 billion USD) in sales for its Game and Network Services segment in the 2018 fiscal year, the company revealed in its earnings announcements on Friday.

For 2018, PlayStation 4 console sales were down. But, overall sales still increased 19% from the prior year “mainly due to an increase in game software and network services revenue,” according to Sony CFO Hiroki Totoki. The PlayStation Now network service has increased in popularity since downloading offered titles was introduced last year.

PlayStation Now is Sony’s cloud gaming service which launched in 2014. The service is a subscription-based model, in which consumers can purchase a monthly membership for $19.99 and get access to stream over 750 PlayStation 3 and PlayStation 4 games. Anticipating the future interest in game streaming, Sony Interactive Entertainment (SIE) purchase Gaikai in 2012. A smart move, as Gaikai would have likely been a competitor as it offered game streaming. SIE’s purchase of the company meant that it acquired Gaikai’s technology and intellectual property (IP) for itself.

In the five years since PlayStation Now launched, the membership has grown about 40% on average each year. Now, the service has about 700,000 subscribers.

The report also found that downloading PlayStation Now titles is increasingly popular. Though streaming is convenient, it also could provide a lag-filled play experience if users have a weak network connection.

The download service for PlayStation Now launched in September of 2018, and since its release, the gameplay time of PS Now titles per user has grown, according to the report.

“Since the launch of this download service,” Totoki said. “Gameplay time per user has grown significantly to the point where gameplay time on downloaded PS4 titles is double that of streamed titles, a trend which has contributed to higher user engagement with, and retention on, the PS Now service.”

Sony will further discuss its vision for PlayStation’s place in the cloud gaming space in May, at the company’s Corporate Strategy Meeting and IR Day.

Looking ahead, Sony expects operating income to decrease in the fiscal year 2019, due to increased development expenses around its next generation console. Further, there are less first-party games coming out compared to 2018, which was helped significantly by PlayStation 4 exclusives like “God of War.”

More Gaming

  • Nintendo Switch

    Nintendo Releases Updated Switch With Better Battery

    Nintendo just refreshed its wildly successful Switch game console, but the company isn’t giving existing Switch owners many reasons to upgrade: The renewed game console comes with a better battery that guarantees up to 9 hours of game play, while otherwise sticking with the same design and features of the original Switch. The new model [...]

  • Spotify logo is presented on a

    U.S. Consumers to Spend $26 Billion on Music, Video Subscriptions This Year

    U.S. consumers are expected to spend a combined $26 billion on music and video subscription services this year, according to new estimates from the Consumer Technology Association. That’s up from $20.4 billion in 2018, and nearly twice the amount spent on such services in 2017. Propelled by the continued success of Apple Music and Spotify, [...]

  • Gears 5 - Xbox Game Studios

    'Gears 5' Will Exclude Smoking Depictions After Concerns Raised by Youth Anti-Tobacco Org (EXCLUSIVE)

    “Gears 5,” the forthcoming installment in the “Gears of Wars” third-person shooter game franchise, will be a smoke-free establishment. The game, set for Sept. 10 release, comes from Xbox Game Studios and game developer The Coalition. The decision to remove all smoking references from “Gears 5” came after not-for-profit anti-smoking organization Truth Initiative approached Turner, [...]

  • Amazon Game Studios - Lord of

    Amazon Teams on 'Lord of the Rings'-Prequel Massively Multiplayer Game

    Amazon announced plans for a massively multiplayer online game set in J.R.R. Tokien’s Middle-earth — but in an era well before the events in “The Lord of the Rings.” Amazon Game Studios has teamed with Leyou Technologies, a Hong Kong-based games company. The companies will jointly develop the free-to-play game for PC and console platforms, [...]

  • Nintendo Switch Lite

    Nintendo Launches Switch Lite Handheld-Only Game System for $200

    Nintendo Switch is getting a cheaper, more colorful little sibling: Switch Lite, a device designed specifically to play Nintendo Switch games in handheld mode. The Switch Lite system is set to ship Sept. 20 at a suggested retail price of $199.99 — $100 less than the flagship Switch, which works in both handheld and TV-connected [...]

  • Walter Scopely Strictly Business Podcast

    Listen: How Scopely Turns TV Hits Into Video Game Gold

    “Star Trek,” “The Walking Dead” and “Wheel of Fortune” are more than just iconic TV brands; they’re the intellectual property powering mobile games on course to reach $100 million each. And they’re all produced by Scopely, a Los Angeles-based video game business led by co-CEO Walter Driver, who has made a specialty of adapting from [...]

More From Our Brands

Access exclusive content