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Treasure Hunter
Registered: 01/25/2009
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Re: Home isn't Free

May 21, 2012

OP understands the basic premise of cash flows.  Way to go.

I think it's pretty obvious where Home gets its money from.  It's a marketing machine.

Home generates revenue from:

A: Microtransactions (The most obvious). Home also has independent developers that produce their own content sold on Home such as Loot, Lockwood, nDreams, etc.  I'm sure Sony gets a certain cut from each of these purchases as well.

B: Hosting. Certain companies have used Home to host their own created spaces.  Red Bull and Diesel are huge examples for this.  They use this to market their products.  Red Bull paid Sony's Home division for the server space for a determined length of time through their written contract.

C: Advertisements. Home is full of them.  Everywhere you go, you see them.  They can be promoting virtual content (See: A), an upcoming movie (MIB kiosk currently in the Hub), or an upcoming game (Street Fighter X Tekken).  Sony gets paid to promote these items for a certain amount of time under a written contract.

From a corporate standpoint, Home's purpose is to assist in sales for Sony's products and partnerships.  From a consumer standpoint (us), it's a social network.  It is painted as a social network to give Sony's userbase a reason to keep coming back, and be influenced through more marketing.  A win for both sides.

So yes, Home is free to the consumer if you choose to make it free.  However, the result of Home may have you spending money through other mediums which will coincidentally become additional revenue for Sony.

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Treasure Hunter
Registered: 01/25/2009
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Re: Home isn't Free

May 21, 2012

It wasn't directed at you Melpoe, your post was just the last reply in the thread when I started typing.

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Uncharted Territory
Registered: 12/01/2011
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Re: Home isn't Free

May 21, 2012

an ego is hard to swallow

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I Only Post Everything
Registered: 09/18/2011
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Re: Home isn't Free

May 21, 2012

Thew902 wrote:

It wasn't directed at you Melpoe, your post was just the last reply in the thread when I started typing.

Oh, I apologize. I read it incorrectly. I'd delete my response, but it won't let me.

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I Only Post Everything
Registered: 09/18/2011
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Re: Home isn't Free

May 21, 2012

*edit*

(Couldn't delete post, so i'll just throw up a picture till a mod removes this)

yum.jpg

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Fender Bender
Registered: 06/18/2011
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Re: Home isn't Free

May 21, 2012

Well, hidden costs or not, NO additional funds are required to play. So, if we pay with hidden costs across all users, then I say PLAY, PLAY, PLAY. Get your money's worth and enjoy. But, what is the point of this thread ?

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Fender Bender
Registered: 01/21/2012
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Re: Home isn't Free

May 21, 2012

If someone is this thread made this post, sorry, but the way I see it here...HOME collects most of its income from Advertisiments. I mean even since the start of Home you have been bombarded with ad's in the Central Plaza on billboards, benches, movie ad's, etc...Even events made to sponsor an event also make them money...much like the current MIB event or past events like the Brisk and Cheez It Event. Also HOME does support clothing and other famous labels, such as DIesel, BIllabong, and former Red Bull. Diesel and Billabong get thier money from the clothes that users buy in thier stores, Red Bull did the same but they had personal spaces and public spaces with rewards making it generally popular and encouraged users to buy thier products.  Other compaines specificly for Home, such as Loot, Lockwood, Heavy Water, nDreams, do most likely get shares for the products they develop on HOME. Some gaming publishers/develpors such as Konami, LucasArts, Mass Media, also get cuts for thier share in HOME, now LucasArts might have left but they still get money from the reamining store items and thier spaces. So basically that's pretty much to it.

 photo tumblr_ltj7u6nyrU1qetp61o1_500_zpse82365c3.gif
http://auroraterra.deviantart.com/
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Fender Bender
Registered: 10/21/2011
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Re: Home isn't Free

May 21, 2012

johnandpaulsing wrote:

when ppl use the term free regarding home ...or pizza delivery we all know there are implied costs .........home IS FREE TO ACCSESS those of us who buy  a lot on home help pay for the costs ..indeed home reportedly makes apprx 400million per yr for sony, tho its relatively a smal slice of Sony  s reported 79 BILLIONgross last year....

What is the source of your stats if you dont mind me asking ?

Because every place I've seen reports Sony losing 2 billion last fiscal quarter

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Fender Bender
Registered: 10/21/2011
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Re: Home isn't Free

May 21, 2012

Thew902 wrote:

OP understands the basic premise of cash flows.  Way to go.

I think it's pretty obvious where Home gets its money from.  It's a marketing machine.

Home generates revenue from:

A: Microtransactions (The most obvious). Home also has independent developers that produce their own content sold on Home such as Loot, Lockwood, nDreams, etc.  I'm sure Sony gets a certain cut from each of these purchases as well.

B: Hosting. Certain companies have used Home to host their own created spaces.  Red Bull and Diesel are huge examples for this.  They use this to market their products.  Red Bull paid Sony's Home division for the server space for a determined length of time through their written contract.

C: Advertisements. Home is full of them.  Everywhere you go, you see them.  They can be promoting virtual content (See: A), an upcoming movie (MIB kiosk currently in the Hub), or an upcoming game (Street Fighter X Tekken).  Sony gets paid to promote these items for a certain amount of time under a written contract.

From a corporate standpoint, Home's purpose is to assist in sales for Sony's products and partnerships.  From a consumer standpoint (us), it's a social network.  It is painted as a social network to give Sony's userbase a reason to keep coming back, and be influenced through more marketing.  A win for both sides.

So yes, Home is free to the consumer if you choose to make it free.  However, the result of Home may have you spending money through other mediums which will coincidentally become additional revenue for Sony.

DING DING DING..WE HAVE A WINNER...(cue confetti and balloons)

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Wastelander
Registered: 05/20/2010
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Re: Home isn't Free

May 21, 2012

home is not free it's "free"

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