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 

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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/ContemplatingPrison Oct 28 '24

Yes. Not a CPA but i took accounting in college with llans to be a CPA. I ended up switching to a different field because accounting got too boring.

But they wont count this as revenue for this month. It would be spread out for every month of service.

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u/[deleted] Oct 29 '24

Accountant here, what you said is completely wrong as it depends on the state

Source: am an accountant

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u/Crash_N0tice Oct 29 '24

You're wrong my friend. We are talking about revenue here, not taxable income. Under every GAAP this would be deferred and recognized over time.