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Sony, Nintendo, & MS videogame profitability numbers through June 30 2007
- Thread starter bycha
- Start date
tehrik-e-insaaf
Member
>>>for sony, some costs that are for games are not booked directly against the game section as of 2000.
This is true. The R&D costs for PS2/PS3 and even PSP go on a seperate P&L.. I would be interested in seeing what the net profitability is after these expenses. I understand the technology can be used for other things, but if you were to assume 50% of the use of the technology is for PS products, then you can do a net calculation.
This is true. The R&D costs for PS2/PS3 and even PSP go on a seperate P&L.. I would be interested in seeing what the net profitability is after these expenses. I understand the technology can be used for other things, but if you were to assume 50% of the use of the technology is for PS products, then you can do a net calculation.
Grampa Simpson
Banned
Anyone want to set up a betting pool on how many years of losing money on XBOX products Microsoft will be willing to go through before giving up on the home console market?nightez said:
Great Rumbler
Member
I wonder if Bill Gates stepping down as chairman will have any effect on the Xbox line. He seemed to be one of the biggest proponents of it [outside of the gaming division itself, anyway].
TheGreatDave
Banned
bmf said:
At least 10.
worldrunover
Member
bmf said:
It took Sony 2 years to start turning a profit in the gaming indusrty. Five years in, Xbox is recording record losses. Hmm...
Duckhuntdog
Member
bmf said:
Would depend on the marketshare the 360 ends up with. Second place finish with a loss... might go for another round but have exhausted all possible advantages (system power, early release) that should have worked in favor. First place finish but still a loss; Green light, find a way to be profitable. Last place finish and at a loss: Pull the plug.
The only sure thing between Sony, MS, and Nintendo is that the Wii will be profitable. The other two...
No they can't. Sony currently has 3.27 B in cash but they have 9.56 B in debt.bycha said:
Microsoft on the other hand are sitting on 31.1 B in cash with 0 debt.
If sony were to keep losing money they would run out of cash which means they would have to take out more debt in form of loans or bonds which hurts their credit rating thereby increasing the amount they have to pay in interest or write up more stocks which would hurt their current stockholders. Either way it's not a good proposition for Sony or it's stockholders.
Yup. People sometimes forget that Nintendo is the Sony of the handheld market. Hell, Sony's kill for that kind of marketshare.Odysseus said:
I personally didn't realize the market was that profitable for them until like 2000. I figured low-costs meant low profits, but apparently they are ridiculously efficient. PEACE.bycha said:
Halo 3 will be huge like PDZero was. GTAIV will be huge like Saints Row & Just Cause were.
These games will sell well but not enough to dig 'em out of the hole. And as far as the Halo movie(which studios already gave up on), haven't they learned from:
Nintendo(Super Mario Bros.) movie
Square(Final Fantasy: The Spirits Within) movie
Midway Games(Mortal Kombat) movie
Capcom(Streetfighter) movie
That probably did not come out right.Odysseus said:
I was comapring the expectations of PDZero from since the PD64 and it was basically a letdown. And GTAIV will be more of the same just prettier. How many times can you yank someone out of a vehicle, do drive-bys or pop someone in the head with your pistols while cursing up a storm. Sorry GTA has lost it for me.
Morbid Angel
Member
nightez said:
Gates has given $29 billion to charities.
Tyrone Slothrop
Banned
those are some hefty losses but i'd assume that's chump change for microsoft
Chris Remo
Member
They can easily handle it but I don't think top brass is particularly thrilled.Tyrone Slothrop said:
Agent Icebeezy
Welcome beautful toddler, Madison Elizabeth, to the horde!
Morbid Angel said:
LOL, this puts it all in prospective :lol
gamergirly
Member
Morbid Angel said:
Over like 10 years. Not sure if he minds spending that much on a video game system as on people dying from AIDs in Africa
nightez said:
First off you give PROFITS to charity NOT losses, you should ask what does Sony give in Profits to charity? We know Microsoft as a whole and as individuals do more for charity than JUST about ANY company(except Newman's Own and Ben and Jerry's) what about Sony/Nintendo Charity work?
I think a massive IBM mentality company like Microsoft looks decades ahead, what did MS ever make for destroying Netscape? Did they EVER sell IE? So I guess it was stupid to make IE?
gamergirly
Member
Syb said:
Exaggeration total.
cartman414
Member
It's expected that Sony has been profitable in the gaming business. A list of operating profits/losses in other divisions would really shed some light on their situation.
Square2005
Banned
Is there a way to get FY figures back another ten years? Especially for Nintendo?
McHuj
Member
bmf said:
They can't withdraw.
It's not just about video games anymore. I think the reason they're still in it and will continue to be in it is that consoles are slowly becoming the convergent media devices in the home.
MS is a giant company that's not growning very fast anymore due to it's monopoly. In the long term they have to expand to new markets like home entertainment and the portable market. Entering those markets now is expensive. Those investments are large and may take years to recoup (maybe even 10+), but they have to be done.
MS was too slow. They should have had the Xbox ready when Sony was introducing PS2. They should have had Zune when Apple was introducing the iPod. Unfortunately for MS, they're a react and copy company not an innovator. When you're playing that role, you'd better be prepared to spend lots of money.
I bet MS knew all the scenarios when they got into the business, even this losing one. They have to stay the course at this point.
Frankly, MS and Gates have so much money that they could just right this debt off.
Finally, I hope the Xbox360 is successful, but not too successful, we don't need a monopoly in the video game world. However if the Xbox360 fails like Xbox 1 did, that will be bad for the gamers as well. I can see MS getting desprate and trying to get the next box out before 2010 or buying out more and more developers trying to win a war of attrition. Also it will probably mean Sony won and who knows what they will try to shove our way with PS4.
And he sure made completely sure people knew about it.Morbid Angel said:
If it had been real philanthropy, he would have done it quietly, without any press releases and proclamation, for precisely the reason that it might be seen as not entirely out of the goodness of his heart but rather smart PR.
Going into fake philanthropy is probably one of the smartest PR moves ever of microsoft. The money given out will most likely come again due to increased goodwill towards the company amongst the general consumer.
It's all nice and dandy that microsoft gives money to charity, no matter the reason. But that doesn't change the fact that it has a generally very bad behavior and influence in the industry.
All the money earned from ridiculously high license contracts for governments and PC manufactures, would have helped the poor much better through better-budgeted welfare programs.
Mithos Yggdrasill
Banned
JCBossman said:
That's because Microsoft is a huge company that has multiple & different source of revenue. If a part of the company go in the red numbers, you are not in trouble until the other sections generate profits.
That's slighty different for Sony, that is in trouble with the Hi-Fi's section due to the concurrence of Sharp, Philips, Panasonic, ....and it is absolutely false for Nintendo, because the gaming is their only source of revenue.
But you're right when you say that Microsoft is in this business for the long term, so we have to put this numbers in the context. But it is also true that since when the Xbox's brand has born, Microsoft has always lost money in this section. Some years have passed now and I'm sure they understand that this situation have to change and not in the long term.
Earthstrike
Member
gamergirly said:
Yeah, and starting up microsoft was also a business expense that should've been donated to charity, BUT OH WAIT! If gates had done that Microsoft wouldn't exist and he would've given maybe about 30,000 to charity instead of 30 billion!
If the importance of charity supercedes the importance of a company's financability, then the ability of the company to make a profit and sustain donations to charity is more important thatn quixotically donating yourself to nothing in the first place.
You are truly clueless. Do you think it's possible that you can give away 30 billion dolloars without people knowing about it? Did you know what Warren Buffett saw how well Gates Foundation was running so he decided to give majority of his money to Gates foundation? Bill Gates will give all of his money minus several million dollars he is leaving to his kids to his foundation.Squeak said:
Now compare this to other well known billionaires like Steve Jobs, Larry Ellison and Michael Dell, their philantropic contributions are miniscule compared to Bill Gates.
He didn't give away 30 billion in one go, it was over a period of 10 years. And of course you could keep it quite if you wanted to, don't be stupid.rage1973 said:
Why would the beneficiary tell if he/she was told to keep quiet about it?
No matter what the truth is, that doesn't change the truth in the last part of my post.
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