Monday, July 5, 2010

The Economics of PlayStation Plus


PlayStation Plus is Sony's premiere service for premium content on the PlayStation 3 and PlayStation Portable systems. Many people have lost sight of what this service is all about. For first party games and content, Sony doesn't have to spend a dime other than their internet bill to let people download games from their servers. When the average PS3 user buys something on PSN, they may only spend $30 per year on content, since disc-based content is still the primary source for said content.

If PS3 users buy into to PlayStation Plus, they get:
-1 Full PSN Title per month
-1-2 minis per month
-1 PS1 Classic per month
-Free Content such as themes, avatars and DLC
-Subscription to QORE
-And DISCOUNTED ITEMS

The buy-in incentive is the FREE content, but when users see the discounts that they get each month, their like, "dang I need to get this before they raise the price." When these users purchase this content at the DISCOUNTED rate, then Sony receives more money on top of the $50 buy-in, essentially doubling their profits. The average user however will not be aware of this.

Now, I did buy into PlayStation Plus, and for the most part, it is a very solid looking program and if users do not purchase any of the discounted items but do download everything that is free, then they will definitely get their moneys worth in content within the first 2-3 months, paying off their years subscription. I for one have received $17.96 worth of free content without spending a dime. This is where Sony intentionally took this Plus package.

Users get more content and Sony gets more money. This is the perfect "WIN-WIN" situation.

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