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, 6 tweets, 2 min read
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A look at Sony's mid to long term growth strategy for its Game and Network Services.
Slide below is from Sony's report.

Sony notes that they plan to strengthen first party content and IP by enhancing the existing studios they have and looking for growth investment opportunities that enhance content IP. Looking at additional M&A opportunities etc...
Sony is looking to create a smooth transition to PS5 and remains on track to launch the console in Holiday 2020.

Working with third parties to ensure content is ready for the platform.
Cloud Gaming is set to play a large role next gen through PS Now.

Cloud is set to be a key distribution channel alongside Blu-Ray disc and digital download to allow players to play anytime, anywhere.

Recent price drop and new game launches led to 1m sub milestone.
PS Vue was unable to compete and is being shut down as a cost saving measure. The service was never able to take off despite being on the market for 4 years.
Sony has reduced its forecast for the game and network services division this fiscal year.

Primary reason due to the delay of TLOU2 into next fiscal year as well as lower than expected PS4 sales in the first half of the year. Third party software revenue also lower than expected
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Daniel Ahmad
@ZhugeEX
Ubisoft Conference Call:

- Strong back catalog performance due to R6S and ACO
- Latest 2 AAA releases underperformed.
- Ghost Recon Breakpoint was disappointing, significantly below expectations.
- Taking steps to ensure this does not happen again (See previous tweets)
Ubisoft Conference Call:

- Could have launched the delayed games in Q1 CY2020 as announced.
- Decided to delay to improve the quality of the games and ensure they can deliver optimal experiences for players.
- Will impact financial performance this year, boost next year
Ubisoft Conference Call:

- Plan to leverage IP across esports, streaming and multiple platforms.
- Investing deeply in franchises and player recurring investment.
- Expanding franchises to mobile
- Investing in Asia market
- Aim to drive topline and profitability growth
Read 3 tweets
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Daniel Ahmad
@ZhugeEX
Ok. Let's talk briefly about Ring Fit Adventure from Nintendo.

As expected, this is the spiritual to successor to Wii Fit and Wii Fit Plus which sold a combined 43.8 million units.

A new adventure game that utilizes a Ring Con and Leg Strap accessory to play. $79, Oct 18th.
Wii Fit launched as a collection of exercise mini games that would track your workouts and push you to improve your health and fitness levels. The balance board was easy to understand and use.

This was at a time when smartphones weren't around and didn't have dedicated apps.
More than a decade after Wii Fit, everyone now uses their smartphone / Apple Watch to track calories, steps, fitness routines, heart rates and other ways of staying healthy.

The market for something like Wii Fit has moved on and Nintendo are of course aware of that.
Read 6 tweets
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Daniel Ahmad
@ZhugeEX
Ok. Let’s talk about Apple Arcade.

$4.99 a month for access to a library of games across Apple devices. Good publisher support. Strong push from Apple to expand its gaming services and offering.

App Store Gaming revenue in 2018 was $33b according to Sensor Tower.
Pricing:

Extremely competitive compared to other game and even non game subscription services.

Addition of family sharing means 6 family members can share one sub at just $4.99 a month.

One month free trial provides an easy way to jump in and try out games with no commitment.
Games:

Apple has been able to court top developers to support the service.

There is a good mix of known IP and original games, most of which have been developed exclusively for the platform.

Most seem to be bitesize / touch orientated titles, but still appeal to core gamers
Read 11 tweets

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