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Sony, Nintendo, & MS videogame profitability numbers through June 30 2007
- Thread starter bycha
- Start date
Thunder Monkey
Banned
Sony's about lost all profit made from the PS2 on the PS3.the_id said:
That seems to be the gist of it.
Thunder Monkey
Banned
For the first two years it should be better as games were already well in development when it started going downhill.the_id said:
After that though... there's no real guarantee.
Updated.
Notes:
1 Kutaragi was right. Sony's $113M profit in 3rd Q is incredible. I think it shows great vision to bring best hardware that will be 2 times cheaper to produce after it's 1st year on the market. From now on PS3 will be close to 360 in pricing and always will have technological advantage.
With additional cost reductions of blu-ray and 65nm RSX that well may be in production right now and big software titles coming Sony's Game Division may well show it's usual $ billion+ per year soon.
I think it's clear that ps3 was still not profitable that Q, but evergreen PS2 and successful PSP helped to bring division to green zone again. PSP software sales are bad though and I'm not sure they will improve that much.
2 Nintendo's results are beyond anything that ever happened. If they will meet demand for Wii worldwide they can go to 3, maybe 4 billion per year.
3 Microsoft done great. Their best quarter on the big software titles. I'm sensing pricecut from them this spring though that may hurt their profitability but overall i think it' s clear that whole 360 project will turn profit in the coming years.
Notes:
1 Kutaragi was right. Sony's $113M profit in 3rd Q is incredible. I think it shows great vision to bring best hardware that will be 2 times cheaper to produce after it's 1st year on the market. From now on PS3 will be close to 360 in pricing and always will have technological advantage.
With additional cost reductions of blu-ray and 65nm RSX that well may be in production right now and big software titles coming Sony's Game Division may well show it's usual $ billion+ per year soon.
I think it's clear that ps3 was still not profitable that Q, but evergreen PS2 and successful PSP helped to bring division to green zone again. PSP software sales are bad though and I'm not sure they will improve that much.
2 Nintendo's results are beyond anything that ever happened. If they will meet demand for Wii worldwide they can go to 3, maybe 4 billion per year.
3 Microsoft done great. Their best quarter on the big software titles. I'm sensing pricecut from them this spring though that may hurt their profitability but overall i think it' s clear that whole 360 project will turn profit in the coming years.
LizardKing
Member
so wait, nintendo has made more profit in 3 quarters than sony has since 1998?
LizardKing said:
Yeah, when you put it that way it does make you wonder, Nintendo has been a juggernaught since 2006, and 2Billion + in profit the past year confrims that, at this rate we're going to have to promote them again, they've risen to heaven already, where next?
Try to stay in heaven should be challenge enough.Stop It said:
But seriously, it seems the competitors already gave up the race for the first place. Instead of spending money to fire up the race, they are already concentrating on turning the business into profit. The market needs more price drops!
biggersmaller
Banned
It's funny, because in the days of the GameCube some people thought Nintendo was going the way of SEGA - citing arrogance in ignoring internet connectivity. Nintendo said people would rather play next to each other on the same TV than play over the internet, and in the age of on-line gaming, people thought they were insane. Plus, the newly announced DS look like a future colossal failure.
Man was I *Imeanthosepeople* were wrong.
Man was I *Imeanthosepeople* were wrong.
DarthWaiter
Banned
tagged for later commenting
Rapping Granny
Banned
I don't know if I read this right, Microsoft didn't make any profit this year?
Felix Lighter
Member
Rapping Granny said:
You're reading it wrong. This is the only year they made a profit, 532,000,000. Everyone should be happy to see all 3 console manufacturers turning a profit.
LizardKing said:
Yeah it's funny when you put it this way. Though ps3 will be a great investment for sony for like 10-15 years. I'm not sure wii will sell that good after 2010. I think they will have to come with hardware on par with ps3.
Stop It said:
One thing remains -- Nintendo's consoles are still not perceived as consoles that have a lot of hardcore games on it. Everybody knows about it success but a lot of people still think it's for parties, casuals, kids etc. Some people are lost to
Every good game on wii in popular genre or with big marketing was a success but much, much more games have to be there.
It will be fun if RE4 Wii Edition will sell more than RE4 on PS2. Okami may sell more than a million etc.
Then yeah -- it's gaming heaven for Nintendo.
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
Sony am genius. I think they will turn a profit overall in 2008.
Zombie James
Banned
ashs said:
Except for the N64. And GC.
Segata Sanshiro
Member
wait. bycha, you honestly think the PS3 will be generating income for 10-15 years?
Are you fucking nuts?
Are you fucking nuts?
Segata Sanshiro
Member
In 15 years the PS3 will be more dead than Mama Cass, and while I'm quite certain BD is going to be the format of choice, even DVD hasn't been around 15 years.spwolf said:
10 years, BD should still be kicking, but I wouldn't call that PS3's income.
The Hermit
Member
Whoa, putting those numbers like that really makes you think... it's true that Nintendo is the only company that has gamming pratically as the only income, but hell...
And before the DS and Wii Nitendo was considered "doomed"...
And before the DS and Wii Nitendo was considered "doomed"...
Segata Sanshiro said:
Maybe not.
1. Movies. DVD format started in 1997. And 11 years later it's very strong. I.е. people who bought DVD-player back then still buying dvds and will continue to buy them (even if they bought better dvds like several times, price does not matter for this consumers).
Blu-ray movies will surely give profit. I can see a consumer who bought ps3 in 2006 buying blu-ray for it in 2016-2020. It still will be one of the best players around thx to new firmware.
2. Games.
I truly believe this gen will be 10 years. So no ps4 till 2015 and games still will appear for ps3 in 2020.
I really don't see how somebody will be able to market new game console in 2011. In previous gens better graphics was obvious. This gen games already pushing beyond 720p.
Even if you have proper hardware and proper setup if you sit comfortably at like 4 meters from the screen almost all people won't even be able to see all that resolution and details.
http://s3.carltonbale.com/resolution_chart.html
So I don't see no way for somebody (other than Nintendo maybe) to market and sell a next-gen console in like 2011. I expect a long-long run. Look at ps2 btw. How many ppl in the world still buy this for 129 and will continue to buy it for 99. With blu-ray and hdd etc it will take maybe 10 years for ps3 to reach that price.
Next-gen will appear when technology will demand it. I don't know what this technology might be.
How about this scenario:bycha said:
Microsoft release XBox 1080 in the end of 2011, with a modest upgrade of three to four times the performance of 360. This means signifikant better performance than the PS3. If they include 2GB RAM (not that much for 2011), 1080p shouldn't be a problem. And the console would still only cost 300$ or less.
Graphic doesn't matter? Well, I think so. Still developers could port any PS3 game easily.
Though the real advantage is the overall package: Microsoft could add an improved gamepad or several different controllers (wiimote-likes included?) to define a new standard.
Whenever you bring a new console on the market, you can define your product in a new way. I don't think Microsoft and Sony would let Nintendo reign more than 5 years, 6 years max.
SeeeeK said:
Your reading it wrong. Microsoft does not have a dedicated Xbox division. The OP is reporting numbers from the Entertainment and Devices division. The numbers include many hardware and software items including Zune, so it is difficult to extract any real gaming numbers.
Microsoft as a whole is not down at all. In Oct-Dec they made $6.5B.
Ash Sparrow
Banned
so 360 itself is likely going to be a very profitable console heh.
Segata Sanshiro said:
People are predicting that digital distribution will take off after a few years and if that happens during the blu-ray cycle, it will then be the last physical format for movies, games and storage (blu-ray rewritable). As we all know, even if DD is the preferred medium of choice for obtaining movies and games, there will always be the physical format to co-exist with it so people have the option to chose between the two. Just like with Itunes and the CD ect...
So unless a new physical format overthrows blu-ray and take over its throne, blu-ray is here to stay for a long long time.
Doesn't mean it'll remain dominant though... optical media's appeal is more for savings from a distribution end for publishers at retail. If that model falters, so will optical eventually... figure it's too bulky, fragile, slow and a flash card reader becomes more appealing suddely to hardware makers (especially if they manufacture the cards too).sakuragi said:
I mean hypothetically, if retail stopped carrying PSP games and it all went dd, do you think people would rather burn blank UMDs or save games to memorysticks? Hell, there's people already screaming for Sony to drop the UMD drive entirely... why would Blu-ray be much different if the retail model changed?
jarrod said:
Look, retails are still selling cds and that haven't changes since the itunes/ipod phenomena because people like to stick to conventions. And again, distributers like things cheap and CDs are the most viable physical format currently, even though they could replace music CD distribution with flash since music is very small and could fit 1 gig flash nicely. But they didn't because Cds are still cheaper than flash, hence more profit. Now apply this logic to blu-ray but instead of tiny music files, we are dealing with HD movies and next gen video games where you need very large space to hold those data. As time goes by, we will even require more and more once higher resolutions than 1080p are introduced into the markets and the same thing with games. Blu-ray could easily hold up to 500 gig to 1 terabite if necessary. All they need is to add more layers to the blu-ray and it wont significantly elevate the cost. However, the same cannot be said about flash. The price is to high to justify the extra transfer speed.
Psychotext
Member
You are massively oversimplifying that... and even if they could squeeze enough layers in for 500gb (let alone 1tb) you'd be looking at a large increase in the complexity of the actual reading mechanisms which would push costs up significant amounts (ignoring the fact that the discs wouldn't work in older BR drives).sakuragi said:
But I do agree with your point in general, it's just more likely to be a completely different format to BR such as HVD or whatever else is coming.
Sure, but CD-ROM was huge... it was industry wide for decades and there's billions of devices that use it. A better comparison for an archival only Blu-ray future would be something like Minidisc... and how widespread is that today? Oh wait, flash killed it.sakuragi said:
Flash doesn't offer advantages in just speed either, it also has the edge in durability, rewritablity, footprint, energy consumption... and it also gives savings on the read end in terms of costs and (especially) footprint. Imagine how tiny a Wii could be if it didn't need an optical drive?
Optical formats were a huge leap forward, but it's not 1990 anymore and their capacity and even cost advantages have been severly eroded. And continue to be as technology progresses, hell solid state is going to kill HDDs too eventually.
Version 3.0
Member
jedimike said:
He's not reading it wrong. It's very clear.
It isn't purely Xbox, true, but the rest of what makes up the division is as likely to be masking a larger loss as it is to be adding to it. Probably more likely. I'm sure anyone overseeing a project losing billions would like to be able to say "it's not just me, there are other things in my division!".
MWS Natural
Member
A 1GB flash drive in the Xbox 1080 would finally kill all that "buray in M$ next consolz!" talk.....if only they could get those prices down.jarrod said:Sure, but CD-ROM was huge... it was industry wide for decades and there's billions of devices that use it. A better comparison for an archival only Blu-ray future would be something like Minidisc... and how widespread is that today? Oh wait, flash killed it.
Flash doesn't offer advantages in just speed either, it also has the edge in durability, rewritablity, footprint, energy consumption... and it also gives savings on the read end in terms of costs and (especially) footprint. Imagine how tiny a Wii could be if it didn't need an optical drive?
Optical formats were a huge leap forward, but it's not 1990 anymore and their capacity and even cost advantages have been severly eroded. And continue to be as technology progresses, hell solid state is going to kill HDDs too eventually.
I was going to say the same thing. This has been known for a while now. And no one should praise any sort of profits that MS recieve through their Xbox division because a lot of that potential profit aside from Halo 3 came from them saving money by cutting corners in components and manufacturing which gave us the unreliable hardware we love and cherish today. That insider article from an MS employee made me want to vomit.Leondexter said:He's not reading it wrong. It's very clear.
It isn't purely Xbox, true, but the rest of what makes up the division is as likely to be masking a larger loss as it is to be adding to it. Probably more likely. I'm sure anyone overseeing a project losing billions would like to be able to say "it's not just me, there are other things in my division!".
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