Many people on the various posts about the Sony leaks have been wondering what exactly all this means and why Sony is having issues. This post is designed to break some of the scattered info down to create an idea of where Sony is headed.
To understand anything about modern Sony, one needs to understand 3 key things:
The PlayStation 5 was released a little over 3 years ago, in that time 12 exclusives have been released.
The Game & Network Services (gaming) division is Sony's largest division, making about 26 billion USD of the 88 billion they made across the whole company in FY2022. It is also the primary driver of the company's growth. The Music division and the Imaging and Sensing division are also growing, but not nearly as quickly. The Electronics Products & Solutions division is a good source of revenue, but it's basically stagnant.
In April 2016 (April 1st lol), Sony Interactive Entertainment LLC (SIE) was created to operate PlayStation (and pretty much the entire gaming division). This ended up effectively moving the HQ of the PlayStation part of the company from Japan (the HQ of SIE's two predecessors) to San Mateo, California, the HQ of the newly formed SIE.
Sony's PlayStation brand has always been a very strong performer in the gaming market, ever since the PS1. It has had it's ups and downs, but has always been a good source of revenue and growth that's been able to capitalize on the continuously growing video game industry. This is best shown with the fact that PS5 has sold way more units than the Xbox series X and S, about twice as many.
However Sony is actually 2nd in a 3 player race, Nintendo is absolutely crushing both Sony and Microsoft in terms of console units sold. The Switch has sold 3x more than the PS5 despite only being twice as old. In fact in 2023 the Switch has been estimated to have sold an extra 10 million units over the PS5, so the Switch's advantage is not all because of it's age.
The main reason is that many Japanese developers and customers started to switch to the Switch, this will be explained later.
No big deal, right? Sony can at least keep a lock on the American AAA market and claw back over the next few years, right? Well, that was probably the plan, until Microsoft did the unexpected: they changed the entire industry.
Microsoft has always treated Xbox as a side business, never really getting the full backing of the entire company. This is because Microsoft is 24x larger than Sony in terms of market cap. Even if Xbox had an overwhelmingly dominant position in the current console business, it wouldn't really be a huge deal.
Thus, Sony always remained safe knowing that they were too small and insignificant to be crushed by Microsoft, and that they also had a very strong Japanese following (of both customers and developers) that would never go team Xbox. That is of course until two different developments occurred:
Microsoft decided that the console business isn't important... but the entire gaming industry is. They determined that if they could get a large slice of the entire gaming pie, not just console money, they would be able to make tons of money.
The Japanese turned on Sony, and started to move to Nintendo.
Both of these developments are best explained separately, so I'll be making 2 different posts that will cover each side of this 2 pronged assault on Sony's lunch.
Which should I write about first:
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Sony Imaging and Sensing the type of company to charge $150 for four png files.
I really don't know what the frick is wrong with that division. I love my alpha camera but their idiotic protectionist policies (limiting burst mode on third party lenses, refusing to update older bodies with newer algorithms) is leaving a gaping hole for Nikon and Canon to come charging right back through.
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Lol wtf. I have an ancient 40 year old k mount lens that works fine on my 90d. Canon Chads keep winning
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The super expensive cameras that can shoot 30-120fps are limited to just 15fps when using a third party lens. This isn't a problem on the A7 and A6000 because they can't shoot that fast in the first place.
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Idk man, Canon and Nikon aren't much better. Canon didn't allow third party lenses at all, though apparently Sigma will come, and Nikon does but they're weird about it, they rebrand Tamron lenses as their own and only a very limited amount of lenses makes it on the mount.
They aren't much better with updates either, though their latest flagships do get better support, not like the A1. But older, lower down the stack cameras don't.
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You're right about Canon. Nikon seems to at least be updating their cameras with new AF algorithms which is more than Sony can say. Sony struck gold with the openness of E Mount, but that seems to be a fluke decision especially because they artificially gimp the camera's abilities when a third party lens is on it.
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Yeah, honestly Nikon has the best excuse to not update since they're on their 3rd processor (kinda) since they launched mirrorless. But them and Canon do at least take care of their flagships, Z9 got huge updates, R5/R5C got big updates, but their lower end isn't supported very well. Sony, OTOH, can't even be bothered to add small things like the lens breathing comp to their flagship. Also, isn't that feature also locked into 1st party lenses?
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