Paid subscription services to Xbox Live and the PlayStation Network generate a lot of money for the people behind them. For the longest time, Sony made its gaming subscriptions free, allowing anyone with Internet access and a PlayStation 3 to log on and compete with their friends. Unfortunately, that will no longer be the case when the company's next-generation console, the PS4, hits shelves for consumers in November. While the move might rub some gamers the wrong way, it is perhaps one of the most profitable moves Sony has made so far with Forbes citing sources estimating a $1.2 billion annual profit.
Luckily for some users, the PlayStation 4 won't have all of its online features hidden behind a paid subscription. Users can still access many online services through their console for free including Netflix videos and sharing gameplay videos.
According HIS Electronics and Media, Sony only made $140 million from PlayStation Plus subscriptions in 2012. By 2017, that number is expected to rise into the $1.2 billion range.
"IHS believes that lower research and development costs for PlayStation 4 hardware, additional revenue streams from online service subscriptions and a more aggressive transition to higher margin digital content sales are combining to strengthen Sony's games business outlook even in the face of increased competition from cheap Android consoles and alternative devices eating into consumers' gaming time, including smartphones and tablets," the research company writes.
This seems about right as Xbox Live Gold memberships, a similar service, raked in $1.25 billion in 2012. The reason Xbox Live is making more money now than expected for PS4 four years from now is simply the fact that Sony hasn't committed to keeping all of its online content locked away to users who don't pay.
With such significant amounts of money on the table, it's not hard to understand why Sony couldn't continue to let online gaming on the PS4 continue to be free. With precious few other quality next-gen online gaming consoles out there, it appears PlayStation users free ride has finally ended.
