Those shareholders want answers
Yeah, the reality is obvious. Still, this week has been surreal.
This is why we say that they can't really do a gamepass model, like a true 1:1. PlayStation supports the company.
This is why siphoning 3rd party support and converting it to a competitor's first party hurts a lot. Looking at the 6 quarters here, at best, Sony games account for 20% of all sales and at worst, 9%.
https://www.nintendo.co.jp/ir/pdf/2021/210805_3e.pdf
Slide 19
Between Q1 FY21 to Q1 FY22, Nintendo's 1st party sales to overall sales ranges from 71.7% to 82.5%. That's a company able to support themselves.
Nobody else can come close to that.
The numbers did not move much with the Bethesda news. That is why I'm not even trying to be snide with people across the internet saying not to overreact. We aren't overreacting, we understand the numbers here. Its time for Sony to figure out what we want to be. Yes, it sounds odd that the defacto leader of gaming for a long time needs to suddenly come to that conclusion but a lot of their success is dependent on others and the competition that has always been 25x bigger than them, as of Tuesday, started acting like a company 25x bigger than them.
This is the week Ken Kutaragi wanted to prevent.
Moore's War - November 1, 2005
In the late 1990s, Gates was in talks with Kutaragi to include the Windows operating system in the PS2. But Kutaragi had long seen Gates as the most lethal threat to his empire. Bernie Stolar, a former Sony executive, remembers Kutaragi asking him as early as 1994 where he thought the nascent PlayStation console's main competition would come from. Nintendo, Stolar guessed. Maybe Intel. Kutaragi looked him squarely in the eyes. "No, Bernie, you are wrong," he said. "It is Microsoft. And I will kill them."
Ken knew the stakes. I'm sure that when this was presented to Microsoft. Nadella probably went over all of the misses which usually happened because they were late to the party. Lumia phones, Groove Music, Zune, Bing, Kin. Goes on and on and on. Day late and a dollar short never again. Not in gaming will they be. Ken tried to catch them while Microsoft was still sleeping. 70 billion means that they are wide awake.