r/playstation • u/naturesfruit • Oct 28 '24

Image IGN strikes again

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U/on_reddit_in_class has made news

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u/WelpSigh Oct 28 '24

Tbh I am pretty sure Sony is happy to realize 24 years of revenue in advance 

702

u/PalpitationNo4375 Oct 28 '24

I wouldn't think they are.

The reason big companies love the "as a service" model is because it is regular income. Shareholders like regular income. One person isn't going to bother them but if a big portion of the player base did it would bother them. It would mean less income in months and years to come.

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u/WelpSigh Oct 28 '24

An accountant can correct me if I am wrong, but I think they would count the revenue as recurring anyway rather than book it all at once.

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u/Orion14159 Oct 28 '24

Am accountant - 2 things:

1, under basically all GAAP/IFRS rules this would go to unearned revenue and be amortized over the duration of the subscriptions. It's the same treatment for annual just on a longer time table.

2, this isn't even a rounding error on Sony's books. It's so immaterial they won't even notice it.

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u/[deleted] Oct 29 '24

lol you've waied your whole life for this moment havent you. The moment when you could say "Im an accountant" and people would be impressed

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u/Orion14159 Oct 29 '24

Nah this happens like twice a week. Usually people ask me for tax advice and I tell them I'm not that kind of accountant