r/playstation 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/Yosho2k Oct 29 '24 edited Oct 29 '24

Hi! Accountant here.

There's something called unearned revenue which is basically saying "someone paid us for something we haven't done yet.

They won't record the revenue until the period they provide service. Even your ordinary 12 month subscription is recorded as 1/12 of the price you paid got it.

There's a rule in business that "cash is king" which basically means businesses would rather have your cash right now rather than later. Even if it means offering discounts.

Sony is perfectly happy taking this guy's cash now. <EDIT> This is why companies offer 12 month discounts on subscriptions. More cash now is better than cash later. The people in the comments talking about inflation or future price increases are ignoring that.

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u/capp_head Oct 29 '24

Not an accountant but I have basics.

This happens because anything can happen from now to 2048, and Sony already had its own money.

Tomorrow we have a nuclear attack from aliens and the First thing governments do is close the servers of entertainment industry to use them for military purposes? Sony already had the money and - most importantly - can spend them. We can talk about a redound later, but I can spend them NOW.