Sony’s game publishing arm has done a 180-degree turn on a controversial policy of requiring PC players to sign in with PlayStation accounts for some games, according to a blog post by the company.
A PlayStation account will “become optional” for Marvel’s Spider-Man 2, God of War Ragnarok, The Last of Us Part II Remastered, and Horizon Zero Dawn Remastered. Sony hasn’t lost hope that players will still go ahead and use a PlayStation account, though, as it’s tying several benefits to signing in.
Logging in with PlayStation will be required to access trophies, the PlayStation equivalent of achievements. (Steam achievements appear to be supported regardless.) It will also allow friend management, provided you have social contacts on the PlayStation Network.
Additionally, Sony is providing some small in-game rewards to each title that are available if you log in with its account system. You’ll get early unlocks of the Spider-Man 2099 Black Suit and the Miles Morales 2099 Suit in Spider-Man 2, for example—or the Nora Valiant outfit in Horizon: Zero Dawn.
Some of these rewards are available via other means within the games, such as the Armor of the Black Bear set for Kratos in Ragnarok.
So when Sony put out the recent “remaster” of Zero Dawn, I was cautiously optimistic. Any sort of non-half-assed PS5 reworking ought to reduce load times, right?
Machines make it hard to enjoy the view.
I meant to dip into the world of Zero Dawn only for a few hours, but I ended up playing through the whole game and its expansion, The Frozen Wilds, over the last few weeks. The arrow-based gameplay, complex story, and voice acting were still terrific, and the remastered elements were far more than a simple cash-in. Even little things, like the way the adaptive triggers on the PS5 controllers mimic the tension of a bowstring, felt perfect.
I didn’t expect to get sucked back into the game’s world for so many hours, but I had a great time doing it and wanted to spread the good word for those who might be looking for an engaging single-player experience over the holidays.
Big changes
When it comes to major changes, the remaster has three.
First, the game loads fast. It feels like a ground-up PS5 title. Death—and its attendant reloads—no longer makes me want to throw my controller across the room during difficult battles. It’s great.
Second, the game looks unbelievable. This is not a case of just upping the resolution to 4K and calling it a day. Sony claims that the game features “over 10 hours of re-recorded conversation, mocap and countless graphical improvements that bring the game to the same visual fidelity as its critically acclaimed sequel.” Also, the game’s characters have “been upgraded, bringing them in line with current generation advances in character models and rendering.”
This is not just marketing fluff. The faces look incredible, even in close-up cinematic interludes, but what really caught my eye was the lighting. From the moment a young Aloy spelunks into a cave and finds an electronic gadget attached to a skeleton lying peacefully in a sunbeam, the revamped lighting engine makes its presence clear. No, it’s not “realistic”—everything looks like a postcard shot. But I found myself pausing the game just to look at the sunlight scattered by a snowstorm or dawn breaking over a mountain range. The lighting interacts with a volumetric set of effects that bring fog and dust devils to life like few other games I’ve seen. When Aloy tramps through a winter squall, leaving footsteps in the mountain snow as she walks, the effect is magical. (Until a Glinthawk swoops in, screaming, and attacks.)
PlayStation 5 owners are reporting advertisements on the device’s home screen. Frustratingly, the ads seem to be rather difficult to disable, and some are also outdated ads and/or confusing content.
The ads, visible on users’ home screens when they hover over a game title, can only be removed if you disconnect from the Internet, IGN reported today. However, that would block a lot of the console’s functionality. The PS5 dashboard previously had ads but not on the home screen.
Before this recent development, people would see game art if they hovered over a game icon on the PS5’s home screen. Now, doing so reportedly brings up dated advertisements. For example, IGN reported seeing an ad for Spider-Man: Across the Spider-Verse “coming soon exclusively in cinemas” when hovering over the Marvel’s Spider-Man: Miles Morales game. Webheads will of course recall that the Spider-Verse movie came out in June 2023.
Similarly, going to NBA 2K25 reportedly shows an ad for gaining early access. But the game came out early this month.
Per IGN, it seems that the console is “pulling in the latest news for each game, whether it be a YouTube video, patch notes, or even the announcement of a different game entirely.” That means that not all games are showing advertisements. Instead, some show an image for a YouTube video about the game or a note about patch notes or updates for the game.
There also seem to be some mix-ups, with MP1st reporting seeing an ad for the LEGO Horizon Adventures game when hovering over the icon for Horizon Zero Dawn. The publication wrote: “The ad also make[s it] confusing a bit, as… it looks like you’re playing LEGO Horizon Adventures and not the actual Horizon game we’re on.”
Some games, like Astro Bot, however, don’t seem to be affected by the changes, per IGN.
Annoyed and confused
Gamers noticing the change have taken to the web to share their annoyance, disappointment, and, at times, confusion about the content suddenly forced into the PS5’s home screen.
“As someone playing through the Spiderman series now, this confused the hell out of me,” Crack_an_ag said via Reddit.
Others are urging Sony to either remove the feature or fix it so that it can be helpful, while others argue that the feature couldn’t be helpful regardless.
“Forcing every single game to make its latest news story its dashboard art is SO stupid as no one game uses the news feature consistently,” Reddit user jackcos wrote.
Sam88FPS, meanwhile, noted that ads drove them from Xbox to PlayStation:
One of the main reasons I moved away from Xbox was the fact they started to build the Xbox UI around ads and pushing [Game Pass]. Hopefully Sony listens more because Xbox absolutely refused to, in fact, they even added full screen startup ads lmao.
It’s unclear what exactly prompted this change. Some suspect it’s related to firmware update 24.06-10.00.00. But that update came out on September 12, and, as IGN noted, its patch notes don’t say anything about this. Considering the obvious problems and mix of content being populated, it’s possible that Sony is working out some kinks and that eventually the content shown on users’ home screens will become more relevant or consistent. The change has also come a few days after a developer claimed that Sony lost $400 million after pulling the Concord online game after just two weeks, prompting digs at Sony and unconfirmed theories that Sony is trying to make up for financial losses with ads.
Ars Technica has reached out to Sony about why it decided to add non-removable ads to the PS5 home screen and about the outdated and otherwise perplexing content being displayed. We’ll let you know if we hear back.
California recently became the first state to ban deceptive sales of so-called “disappearing media.”
On Tuesday, Governor Gavin Newsom signed AB 2426 into law, protecting consumers of digital goods like books, movies, and video games from being duped into purchasing content without realizing access was only granted through a temporary license.
Sponsored by Democratic assemblymember Jacqui Irwin, the law makes it illegal to “advertise or offer for sale a digital good to a purchaser with the terms buy, purchase, or any other term which a reasonable person would understand to confer an unrestricted ownership interest in the digital good, or alongside an option for a time-limited rental.”
Moving forward, sellers must clearly mark when a buyer is only receiving a license for—rather than making a purchase of—a digital good. Sellers must also clearly disclose that access to the digital good could be revoked if the seller no longer retains rights to license that good.
Perhaps most significantly, these disclosures cannot be buried in terms of service, but “shall be distinct and separate from any other terms and conditions of the transaction that the purchaser acknowledges or agrees to,” the law says.
An exception applies for goods that are advertised using “plain language” that states that “buying or purchasing the digital good is a license.” And there are also carve-outs for free goods and subscription services providing limited access based on a subscription’s duration. Additionally, it’s OK to advertise a digital good if access isn’t ever revoked, such as when users purchase a permanent download that can be accessed offline, regardless of a seller’s rights to license the content.
Ubisoft, Sony called out for consumer harms
In a press release earlier this month, Irwin noted that the law was drafted to “address the increasingly-common instance of consumers losing access to their digital media purchases through no fault of their own.”
Irwin noted that the US has been monitoring this problem since at least 2016, when the Department of Commerce’s Internet Policy Task Force published a white paper concluding that “consumers would benefit from more information on the nature of the transactions they enter into, including whether they are paying for access to content or for ownership of a copy, in order to instill greater confidence and enhance participation in the online marketplace.”
It took eight years for the first state lawmakers to follow through on the recommendation, Irwin said, noting that sellers are increasingly licensing content over selling goods and rarely offer refunds for “disappearing media.”
“As retailers continue to pivot away from selling physical media, the need for consumer protections on the purchase of digital media has become increasingly more important,” Irwin said. “AB 2426 will ensure the false and deceptive advertising from sellers of digital media incorrectly telling consumers they own their purchases becomes a thing of the past.”
In Irwin’s press release, University of Michigan law professor Aaron Perzanowski praised California for trailblazing with a law that clearly labels this practice as false advertising.
“Consumers around the world deserve to understand that when they spend money on digital movies, music, books, and games, those so-called ‘purchases’ can disappear without notice,” Perzanowski said. “There is still important work to do in securing consumers’ digital rights, but AB 2426 is a crucial step in the right direction.”
When we first received our PlayStation 5 review unit from Sony in 2020, we reacted with some bemusement to the “8K” logo on the box and its implied promise of full 7630×4320 resolution output. We then promptly forgot all about it since native 8K content and 8K compatible TVs have remained a relative curiosity thus far in the PS5’s lifespan.
But on Wednesday, Digital Foundry’s John Linneman discovered that Sony has quietly removed that longstanding 8K label from the PS5 box. The ultra-high-resolution promise no longer appears on the packaging shown on Sony’s official PlayStation Direct store, a change that appears to have happened between late January and mid-February, according to Internet Archive captures of the store page (the old “8K” box can still be seen at other online retailers, though).
A promise deferred
This packaging change has been a long time coming since the PS5 hasn’t technically been living up to its 8K promise for years now. While Sony’s Mark Cerny mentioned the then-upcoming hardware’s 8K support in a 2019 interview, the system eventually launched with a pretty big “coming soon” caveat for that feature. “PS5 is compatible with 8K displays at launch, and after a future system software update will be able to output resolutions up to 8K when content is available, with supported software,” the company said in an FAQ surrounding the console’s 2020 launch.
Well over three years later, that 8K-enabling software update has yet to appear, meaning the console’s technical ability to push 8K graphics is still a practical impossibility for users. Until Sony’s long-promised software patch hits, even PS5 games that render frames internally at a full 8K resolution are still pushing out a downscaled 4K framebuffer through that HDMI 2.1 cable.
At this point, though, there’s some reason to expect that the promised patch may never come to the standard PS5. At the moment, the ever-churning rumor mill is expecting an impending mid-generation PS5 Pro upgrade that could offer true, native 8K resolution support right out of the box. If that comes to pass, removing the outdated “8K” promise from the original PS5 packaging could be a subtle way to highlight the additional power of the upcoming “Pro” upgrade.
So will console gamers be missing out if they don’t upgrade to an 8K-compatible display? Probably not, as studies show extremely diminishing returns in the perceived quality jump from 4K to 8K visual content for most users and living room setups. Unless you are sitting extremely close to an extremely large display, it’s pretty unlikely you’ll even be able to tell the difference.
If you’re still getting use out of your aging PS4 after nearly four full years of PS5 availability, new data from Sony shows you are far from alone. The Japanese electronics giant says that both the PS4 and PS5 currently have about 49 million monthly active users, suggesting a significant number of PlayStation players have yet to spend $400 or more to upgrade to the newer console.
Despite the parity in active consoles, Sony also points out that the PS5 is responsible for significantly more gameplay hours than the PS4: 2.4 billion for the new system compared to 1.4 billion for its predecessor (it’s unclear what time period this comparison covers). Sony’s monthly user numbers also include any console “used to play games or [access] services on the PlayStation Network,” so an old PS4 that serves as a convenient Netflix box in the spare bedroom would still inflate the older system’s numbers here.
Still, it’s pretty impressive that nearly 50 million people are still regularly using a console first launched in 2013 (even considering 2016’s Pro upgrade). That could be in part because the PS4 is still seeing plenty of software support well after the PS5’s release; Sony’s PSN Store listings currently include 189 “just released” PS4-compatible games, including many “best-selling” titles that don’t require a PS5 at all. The fact that those PS4-compatible titles are also playable directly on the PS5 has probably helped convince some publishers to target the older console for their less graphics-intensive games.
The PS4’s longevity doesn’t seem to have had a significant negative impact on the PS5’s bottom line, either. Sony’s gaming division has already earned $10 billion in profit off of $106 billion in sales across the nearly four years of the PS5 generation, compared to $9 billion in profit off $107 billion in sales across seven years of the PS4.
PS5 owners have spent an average of $731 each across games, services, peripherals, and add-on content. That’s up significantly from $580 in nominal spending from the average PS4 owner at the same point in that console’s life cycle, though what sounds like a big increase is actually pretty flat when you take inflation into account.
That per-console gaming spending is now concentrated less on “full game” purchases—which are down 12 percent between the PS4 to PS5 generation—and much more on so-called add-on content—which is up 176 percent between generations. We’re guessing that big-spending, loot-box-chasing “whales” have something to do with that increase.
Sony has taken down an interview with Naughty Dog Studio Head Neil Druckmann (Uncharted, The Last of Us) that the company now says contains “several significant errors and inaccuracies that don’t represent his perspective and values.” The surprising move comes after Druckmann took the extreme measure of publicly questioning a portion of the PR interview by posting a lengthy transcript that conflicted with the heavily edited version Sony posted online.
The odd media saga began last Thursday, when Sony published the interview (archive here) under the heading “The Evolution of Storytelling Across Mediums.” The piece was part of the Creative Entertainment Vision section of Sony’s corporate site, a PR-driven concept exploring how Sony will “seamlessly connect multi-layered worlds where physical and virtual realities overlap to deliver limitless Kanto—through creativity and technology—working with creators.” Whatever that means.
Druckmann’s short interview started attractingattention almost immediately, primarily due to Druckmann’s apparent promotion of using AI tools in game development. Such tools “will allow us to create nuanced dialogues and characters, expanding creative possibilities,” Druckmann is quoted as saying. “AI is really going to revolutionize how content is being created, although it does bring up some ethical issues we need to address.”
Not so fast…
By Friday, though, Druckmann ended a months-long drought of social media posting by noting that, in at least one case, the words posted by Sony were “not quite what I said. In editing my rambling answers in my recent interview with Sony, some of my words, context, and intent were unfortunately lost.”
As evidence, Druckmann posted this “rambling” 457-word response to a question about a “personal vision or dream project” he hoped to create:
Well, I’ve been very lucky, in that I’ve already had that. I got the chance to make several of my dream projects. I am working on a new one right now. And it’s maybe the most excited I’ve been for a project yet. I can’t talk about it or our bosses will get very mad at me.
And I guess in general, there is something happening now that I think is very cool. Which is there’s a new appreciation for gaming that I’ve never seen before. Like when I was growing up, gaming was more of a kid’s thing. Now it’s clearly for everyone. But it’s like, if you’re a gamer, you know about the potential of games, and non-gamers, they don’t really know what they’re missing out on.
But my hope was, when we made The Last of Us as a TV show that we could change that. And why I became so involved with it. I wanted so badly for it to be good, because I wanted this to happen, which is like someone who will watch the show and really like it. And fall in love with those characters the way that we have fallen in love with those characters and their story. And then realize at the end, “Wait, that’s based on a video game?” and then go and check out the game and just see the wealth of narratives and everything that’s happening in games.
So now I feel like there’s kind of a spotlight on gaming. And you know, Fallout just came out. And that’s a big success for Amazon. And I find that really exciting. Not because games need to be movies, or they need to be TV shows, but I think it just kind of opens the eyes of a bunch of people that just weren’t aware of the kind of experiences that exist in games. I think right now we’ve hit a tipping point where it’s about to take off where people realize, “Oh my God, there’s all these incredible moving experiences in games!”
So, I’m not only excited for this game that we’re making—and it’s, it’s something really fresh for us—but I’m also excited to see how the world reacts to it. Because of The Last of Us, and the success of the show, people even outside of gaming are looking at us to see what it is that we put out next. I’m very excited to see what the reaction for this thing will be—and l’ve already said too much about it. I’ll stop there. So, you’re asking me for my dream projects. I’ve been very lucky to have worked on my favorite games with incredible collaborators and I’m very thankful for them.
For reference, here is the 127-word summary of that answer posted by Sony:
I’ve been lucky to work on several dream projects and am currently excited about a new one, which is perhaps the most thrilling yet. There’s a growing appreciation for gaming that transcends all age groups, unlike when I was growing up. This shift is highlighted by our venture into television with The Last of Us, which I hoped would bridge the gap between gamers and non-gamers. The show’s success has spotlighted gaming, illustrating the rich, immersive experiences it offers. This visibility excites me not only for our current project but for the broader potential of gaming to captivate a global audience. I’m eager to see how this new game resonates, especially following the success of The Last of Us, as it could redefine mainstream perceptions of gaming.
While the gist of Druckmann’s original answer is more or less preserved, the condensed version loses a lot of the specific details and flavor Druckmann highlighted in his answer. The edited version also inserts some key phrases and ideas that Druckmann didn’t use at all, such as his supposed hope that his new project “could redefine mainstream perceptions of gaming.”
Though we don’t know how much Druckmann’s other answers were clipped or amended in the editing process, Druckmann’s public annoyance with the edits was apparently enough to get Sony’s attention. Sometime after Tuesday night, the PlayStation-maker replaced the public interview with the following message:
In re-reviewing our recent interview with Naughty Dog’s Neil Druckmann, we have found several significant errors and inaccuracies that don’t represent his perspective and values (including topics such as animation, writing, technology, AI, and future projects). We apologize to Neil for misrepresenting his words and for any negative impact this interview might have caused him and his team. In coordination with Naughty Dog and SIE, we have removed the interview.
Journalists often edit interview responses for concision and clarity, but this interview skips the usual step of noting the existence of those kinds of edits near the top of the piece. And while press releases often contain executive quotes that have been carefully crafted in consultation with PR professionals, there was no indication in this article that the responses here were anything other than Druckmann’s own thoughts and words.
Game publishers and console makers have a long history of sharing developer interviews directly with the public rather than having those developers’ views filtered through the press. This is the first instance we can remember where the promotional process itself has become a source of controversy.
Sony Music is sending warning letters to more than 700 artificial intelligence developers and music streaming services globally in the latest salvo in the music industry’s battle against tech groups ripping off artists.
The Sony Music letter, which has been seen by the Financial Times, expressly prohibits AI developers from using its music—which includes artists such as Harry Styles, Adele and Beyoncé—and opts out of any text and data mining of any of its content for any purposes such as training, developing or commercializing any AI system.
Sony Music is sending the letter to companies developing AI systems including OpenAI, Microsoft, Google, Suno, and Udio, according to those close to the group.
The world’s second-largest music group is also sending separate letters to streaming platforms, including Spotify and Apple, asking them to adopt “best practice” measures to protect artists and songwriters and their music from scraping, mining and training by AI developers without consent or compensation. It has asked them to update their terms of service, making it clear that mining and training on its content is not permitted.
Sony Music declined to comment further.
The letter, which is being sent to tech companies around the world this week, marks an escalation of the music group’s attempts to stop the melodies, lyrics and images from copyrighted songs and artists being used by tech companies to produce new versions or to train systems to create their own music.
The letter says that Sony Music and its artists “recognize the significant potential and advancement of artificial intelligence” but adds that “unauthorized use . . . in the training, development or commercialization of AI systems deprives [Sony] of control over and appropriate compensation.”
It says: “This letter serves to put you on notice directly, and reiterate, that [Sony’s labels] expressly prohibit any use of [their] content.”
Executives at the New York-based group are concerned that their music has already been ripped off, and want to set out a clearly defined legal position that would be the first step to taking action against any developer of AI systems it considers to have exploited its music. They argue that Sony Music would be open to doing deals with AI developers to license the music, but want to reach a fair price for doing so.
The letter says: “Due to the nature of your operations and published information about your AI systems, we have reason to believe that you and/or your affiliates may already have made unauthorized uses [of Sony content] in relation to the training, development or commercialization of AI systems.”
Sony Music has asked developers to provide details of all content used by next week.
The letter also reflects concerns over the fragmented approach to AI regulation around the world. Global regulations over AI vary widely, with some regions moving forward with new rules and legal frameworks to cover the training and use of such systems but others leaving it to creative industries companies to work out relationships with developers.
In many countries around the world, particularly in the EU, copyright owners are advised to state publicly that content is not available for data mining and training for AI.
The letter says the prohibition includes using any bot, spider, scraper or automated program, tool, algorithm, code, process or methodology, as well as any “automated analytical techniques aimed at analyzing text and data in digital form to generate information, including patterns, trends, and correlations.”
Helldivers 2 PC players can continue doing their part for Super Earth, sans Sony logins.
Sony’s plan for its surprise hit co-op squad shooter—now the most successful launch in Sony’s nascent PC catalog—Helldivers 2, was to make its players sign in with PlayStation Network (PSN) accounts before it launched in early February, even if they purchased the game through the Steam store.
Sony and developer Arrowhead didn’t enforce PSN logins during its frenetic launch and then announced late last week that PSN accounts would soon be mandatory. Many players did not like that at all, seeing in it a sudden desire by Sony to capitalize on its unexpected smash hit. Some were not eager to engage with a network that had a notable hack in its history, others were concerned about countries where PSN was not offered, and many didn’t take Sony at its word that this was about griefing, banning, and other moderation. Because of the uneven availability of Steam and PSN, Helldivers 2 was delisted in 177 countries on Steam over the weekend as Steam worked through refund requests.
The pushback made an impression, and now Sony has announced that account linking “will not be moving forward.” In a post on X (formerly Twitter) Sunday night addressed to Helldivers fans, the official PlayStation account wrote that the publisher had “heard your feedback” and was “still learning what is best for PC players and your feedback has been invaluable.”
“Feedback,” in this case, likely included a long weekend of both PlayStation and Arrowhead hearing from a Helldivers fanbase that had previously been relatively sanguine and cohesive, at least for an online multiplayer shooter. Steam reviews of Helldivers 2 took a sad but predictable plummet downward, the game’s subreddit pivoted from cosigned enthusiasm to protest, and lots of people tied to the game spent a lot of time over the weekend trying to address the surge of negative social media.
Johan Pilestedt, CEO of Arrowhead Games Studio, after facetiously asking if now was the moment “to tweet ‘What? You guys don’t have phones?'”, posted on X early Sunday that his firm was “talking solutions with PlayStation, especially for non-PSN countries.” Responding to a reply that asked why he or his firm were “acting all blameless,” Pilestedt was candid. “I do have a part to play. I am not blameless in all of this – it was my decision to disable account linking at launch so that players could play the game. I did not ensure players were aware of the requirement and we didn’t talk about it enough,” Pilestedt wrote.
He added, ‘We knew for about 6 months before launch that it would be mandatory for online PS titles.” Asked why, if known for 6 months, the game was sold to countries without PSN available, he responded, “We do not handle selling the game.”
It will certainly be interesting to see what Sony does next with its success beyond consoles. Helldivers 2 is by far its most successful PC launch to date, and its seventh highest-grossing game overall. There’s a market there for the right kinds of games, but how Sony cultivates that market, and whether they’ll welcome Sony as anything beyond a publisher on Steam, remains to be seen.
The developer of Ghost of Tsushima, arriving soon on PC, made sure to note Friday on X/Twitter that a PSN account was only required for the multiplayer mode of the game, not the single-player adventure.
This post was update at 10: 41 a.m. to note prior international delistings, and Sony’s clarification about PSN requirements for an upcoming game.
There’s a lot of stories about the modern PC gaming industry balled up inside one recent “update” to Helldivers 2.
Sony Interactive Entertainment announced Thursday night that current players of the runaway hit co-op shooter will have to connect their Steam accounts to a PlayStation Network (PSN) account starting on May 30, with a hard deadline of June 4. New players will be required to connect the two starting Monday, May 6.
Officially, this is happening because of the “safety and security provided on PlayStation and PlayStation Studios games.” Account linking allows Sony to ban abusive players, and also gives banned players the right to appeal. Sony writes that it would have done this at launch, but “Due to technical issues … we allowed the linking requirements for Steam accounts to a PlayStation Network account to be temporarily optional. That grace period will now expire.”
“We understand that while this may be an inconvenience to some of you, this step will help us to continue to build a community that you are all proud to be a part of,” Sony writes in the update. The Helldivers community on Reddit is flush with dissenting posts today, and Steam reviews of the game have taken a marked turn since the announcement.
Oh, right, that PlayStation Network
It’s the combination of “safety and security” and “Sony” that make this more than just the typical grousing about game launchers, cross-play, or other user/password demands. The PlayStation Network was fully and famously hacked in April 2011, with 77 million users’ names, addresses, emails, birthdays, passwords, and logins compromised. Sony Online Entertainment also suffered a separate attack while PSN was down, exposing millions more accounts and thousands of credit card numbers. PSN came partially back online 26 days later, then fully online two weeks later, with a complimentary year of identity protection and Welcome Back packages for subscribers. Less than a month later, other aspects of Sony were hacked by LulzSec.
Those with a long enough memory of computers, security, and Sony might also recall the Sony rootkit debacle, which, while nearly 20 years old now, was such a notably bad and bizarre thing that it stuck around.
An online game people want less online
Helldivers 2 was not supposed to be this big a game. Sony was still cautiously trodding into PC games after years of treating its exclusive and first-party games as console leverage. Helldivers 2 was a sequel to a game that, while well-regarded, didn’t land as a smash hit.
That success hurts the optics of Sony’s demand, months after it had an unexpected hit, that players must now register with its far-from-trusted network to keep playing. A non-mega-budgeted game, a trial-balloon sequel, hits big, and Sony, finding its footing in this new realm, doesn’t want to leave said opportunity as a one-time Steam purchase.
Two blimps jousting overhead
Helldivers 2 is explicitly multiplayer, and the action takes place on Sony’s servers. But Steam is the means by which Helldivers 2 reaches its players, fosters engagement, and, of course, tries to entice them into DLC, further sequels, and perhaps other Sony PC games—so long as they’re on also on Steam.
There are no rock-solid numbers on Steam’s PC gaming market share, but we know that the biggest competitor, Epic Games, is losing hundreds of millions of dollars each year giving away games just to get some kind of foothold. Steam’s market position, recommendation whims, and broad 30 percent revenue cut have left many companies searching for ways to disentangle their futures from a single platform. Sony just happens to be the one making the hard ask, for reasons that don’t entirely sound obvious months later, and with a network that has some tough Google search results.
It’s worth noting that PSN is not necessarily available in all countries where Steam sells games. We’ve reached out to Sony to ask about this and for further comment on their PSN requirement, and will update this post if we hear back.
Streaming services like Netflix and Peacock have already found multiple ways to aggravate paying subscribers this week.
The streaming industry has been heating up. As media giants rush to establish a successful video streaming business, they often make platform changes that test subscribers’ patience and the value of streaming.
Below is a look at the most exasperating news from streaming services from this week. The scale of this article demonstrates how fast and frequently disappointing streaming news arises. Coincidentally, as we wrote this article, another price hike was announced.
We’ll also examine each streaming platform’s financial status to get an idea of what these companies are thinking (spoiler: They’re thinking about money).
Peacock’s raising prices
For the second time in the past year, NBCUniversal is bumping the price of Peacock, per The Hollywood Reporter (THR) on Monday.
As of July 18, if you try to sign up for Peacock Premium (which has ads), it’ll cost $7.99 per month, up from $5.99/month today. Premium Plus, (which doesn’t have ads), will go up from $11.99/month to $13.99/month. Annual subscription pricing for the ad plan is increasing 33.3 percent from $59.99 to $79.99, and the ad-free annual plan’s price will rise 16.7 percent from $119.99/year to $139.99/year.
Those already subscribed to Peacock won’t see the changes until August 17, six days after the closing ceremony of the 2024 Summer Olympics, which will stream on Peacock.
The pricing changes will begin eight days before the Olympics’ opening ceremony. That means that in the days leading up to the sporting event, signing up for Peacock will cost more than ever. That said, there’s still time to sign up Peacock for its current pricing.
As noted by THR, the changes come as NBCUniversal may feel more confident about its streaming service, which now includes big-ticket items, like exclusive NFL games and Oppenheimer(which Peacock streamed exclusively for a time),in addition to new features for the Olympics, like multiview.
Some outspoken subscribers, though, aren’t placated.
“Just when I was starting to like the service,” Reddit user MarkB1997 said in response to the news. “I’ll echo what everyone has been saying for a while now, but these services are pricing themselves out of the market.”
Peacock subscribers already experienced a price increase on August 17, 2023. At the time, Peacock’s Premium pricing went from $4.99/month to $5.99/month, and the Premium Plus tier from $9.99/month to $11.99/month.
Peacock’s pockets
Peacock’s price bumps appear to be a way for the younger streaming service to inch closer to profitability amid a major, quadrennial, global event.
NBCUniversal parent company Comcast released its Q1 2024 earnings report last week, showing that Peacock, which launched in July 2020, remains unprofitable. For the quarter, Peacock lost $639 million, compared to $825 million in Q4 2023 and $704 million in Q1 2023. Losses were largely attributed to higher programming costs.
Peacock’s paid subscriber count is lower than some of its rivals. The platform ended the quarter with 34 million paid users, up from 31 million at the end of 2023. Revenue also rose, with the platform pulling in $1.1 billion, representing a 54 percent boost compared to the prior year.
Sony bumps Crunchyroll prices weeks after shuttering Funimation
Today, Sony’s anime streaming service Crunchyroll announced that it’s increasing subscription prices as follows:
The Mega Fan Tier, which allows streaming on up to four devices simultaneously, will go from $9.99/month to $11.99/month
The Ultimate Fan Tier, which allows streaming on up to six devices simultaneously, will go from $14.99/month to $15.99/month
Crunchyroll’s cheapest plan ($7.99/month) remains unchanged. None of Crunchyroll’s subscription plans have ads. Crunchyroll’s also adding discounts to its store for each subscription tier, but this is no solace for those who don’t shop there on a monthly basis or at all.
The news of higher prices comes about a month after Sony shuttered Funimation, an anime streaming service it acquired in 2017. After buying Crunchyroll in 2021, Funimation was somewhat redundant for Sony. And now that Sony has converted all remaining Funimation accounts into Crunchyroll accounts (while deleting Funimation digital libraries), it’s forcing many customers to pay more to watch their favorite anime.
A user going by BioMountain on Crunchyroll said the news is “not great,” since they weren’t “a big fan of having to switch from Funimation to begin with, especially since that app was so much better” than Crunchyroll.
Interestingly, when Anime News Network asked on February 29 whether Crunchyroll would see prices rise over the next two years, the company told the publication that predicting a price change for that time frame would be improbable.
Crunching numbers
Crunchyroll had 5 million paid subscribers in 2021 but touted over 13 million in January, (plus over 89 million unpaid users, per Bloomberg). Crunchyroll president Rahul Purini has said that Crunchyroll is profitable, but not by how much.
In 2023, Goldman Sachs estimated that Crunchyroll would represent 36 percent of Sony Pictures Entertainment’s profit by 2028, compared to about 1 percent in March.
However, Purini has shown interest in growing the company further and noted to Variety in February an increase in “general entertainment” companies getting into anime.
Still, anime remains a more niche entertainment category, and Crunchyroll is more specialized than some other streaming platforms. With Sony making it so that anime fans have one less streaming service option and jacking up the prices for one of the limited options, it’s showing that it wants as much of the $20 billion anime market as possible.
Crunchyroll claimed today that its pricing changes are tied to “investment in more anime, additional services like music and games, and additional subscriber benefits.”
Yesterday, Microsoft announced that it made 31 percent less off Xbox hardware in the first quarter of 2024 (ending in March) than it had the year before, a decrease it says was “driven by lower volume of consoles sold.” And that’s not because the console sold particularly well a year ago, either; Xbox hardware revenue for the first calendar quarter of 2023 was already down 30 percent from the previous year.
Those two data points speak to a console that is struggling to substantially increase its player base during a period that should, historically, be its strongest sales period. But getting wider context on those numbers is a bit difficult because of how Microsoft reports its Xbox sales numbers (i.e., only in terms of quarterly changes in total console hardware revenue). Comparing those annual shifts to the unit sales numbers that Nintendo and Sony report every quarter is not exactly simple.
Context clues
To attempt some direct contextual comparison, we took unit sales numbers for some recent successful Sony and Nintendo consoles and converted them to Microsoft-style year-over-year percentage changes (aligned with the launch date for each console). For this analysis, we skipped over each console’s launch quarter, which contains less than three months of total sales (and often includes a lot of pent-up early adopter demand). We also skipped the first four quarters of a console’s life cycle, which don’t have a year-over-year comparison point from 12 months prior.
This still isn’t a perfect comparison. Unit sales don’t map directly to total hardware revenue due to things like inflation, remainder sales of Xbox One hardware, and price cuts/discounts (though the Xbox Series S/X, PS5, and Switch still have yet to see official price drops). It also doesn’t take into account the baseline sales levels from each console’s first year of sales, making total lifetime sales performance on the Xbox side hard to gauge (though recent data from a Take-Two investment call suggests the Xbox Series S/X has been heavily outsold by the PS5, at this point).
Even with all those caveats, the comparative data trends are pretty clear. At the start of their fourth full year on the market, recent successful consoles have been enjoying a general upswing in their year-over-year sales. Microsoft stands out as a major outlier, making less revenue from Xbox hardware in four of the last five quarters on a year-over-year basis.
Those numbers suggest that the hardware sales rate for the Xbox Series S/X may have already peaked in the last year or two. That would be historically early for a console of this type; previous Ars analyses have shown PlayStation consoles generally see their sales peaks in their fourth or fifth year of life, and Nintendo portables have shown a similar sales trend, historically. The Xbox Series S/X progression, on the other hand, looks more similar to that of the Wii U, which was already deep in a “death spiral” at a similar point in its commercial life.
This is not the end
In the past, console sales trends like these would have been the sign of a hardware maker’s wider struggles to stay afloat in the gaming business. However, in today’s gaming market, Microsoft is in a place where console sales are not strictly required for overall success.
For instance, Microsoft’s total gaming revenue for the latest reported quarter was up 51 percent, thanks in large part to the “net impact from the Activision Blizzard acquisition.” Even before that (very expensive) merger was completed, Microsoft’s total gaming revenue was often partially buoyed by “growth in Game Pass” and strong “software content” sales across PC and other platforms.
So, while the commercial future of Xbox hardware may look a bit uncertain, the future of Microsoft’s overall gaming business is in much less dire straits. That would be true even if Microsoft’s Xbox hardware revenue fell by 100 percent.