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Comprehensive Industry Analysis: Publishers

Opiate

Member
Note: Newer results for more recent fiscal years can be found further down the thread. If you are looking for comprehensive coverage of developers (not publishers), please look at this thread.

This thread is going to require a lot of help, as frankly I've just gotten started compiling the information. I'd greatly appreciate any and all assistance if anyone else finds this interesting.

The goal of the thread is to put together the basic, rudimentary information about as many major gaming software publishers as possible -- that basic information being their profit and revenue. Some comapnies won't be viewable as they are privately owned, and others may at least be obfuscated by departmental overlap with separate industries. But it should be a fairly good indication of the trends and strength of the industry as it currently stands, as most of the major players in the industry have transparent and publicly available financial records.

I'm going to start simply with the last 4 quarters, and if this thread goes well, I'll build from there. In some cases (Sony, Nintendo), that's exactly the last fiscal year, but in other cases, it will show some overlap. Again, if someone could snag more info for me, I'd love it, and I'll throw it right up. All corrections are welcome as well, as I'm sure this isn't perfect. Here we go! Exact figures given in millions of dollars, and then approximations for those who may not be inclined to accounting. All figures in US Dollars, and profit/loss bolded as most significant statistic.

Sony Gaming Segment FY07:
12,842; ~12.8 Billion Revenue.
(1,245); ~1.25 Billion Loss.

Nintendo FY08:
15,987; ~16 Billion Revenue.
2,460; ~2.46 Billion Profit

Microsoft FY 07 Q4 - FY08 Q3, ED Division:
7,724; ~7.72 Revenue.
(585); ~585 Million Loss.

Electronic Arts FY08:
3,665; ~3.67 Billion Revenue.
(487); ~487 Million Loss.

Activision FY08:
2,900; ~2.9 Billion Revenue.
344.9; ~345 Million Profit.

Capcom FY 08
804; ~804 Million Revenue.
78; ~78 Million Profit.

Konami FY08:
2,842; ~2.84 Billion Revenue.
176.2; ~176 Million Profit.

Square Enix Q4 FY 06 - Q3 FY07*:
1,100; ~1.1 Billion Revenue.
87; ~87 Profit.

SCi/Eidos FY07:
279; ~279 Million Revenue.
(59.9); ~60 Million Loss.

Midway FY07:

157,195; ~157 Million Revenue.
(100); ~100 Million Dollar Loss.

SegaSammy Consumer Business Division FY08:
1,363; ~1.4 Billion Revenue.
(58); ~58 Million Loss.

Take 2 Interactive: FY07 Q2 - FY08 Q1:
929,613; ~930 Million Revenue.
(169,340); ~169 Million Loss.

NamcoBandai Game Segments Division FY08:
1,392; ~1.4 Billion Revenue.
141; ~141 Million Profit.

THQ FY08:
1,030; ~1 Billion Revenue.
(35); ~35 Million Loss.

InfoGrames, FY07*:
473; ~473 Million Revenue.
(159.8); ~160 Million Loss.

Ubisoft FY08:
1,460; ~1.46 Billion Revenue.
172.45; ~172 Million Profit.


*These reports are not up to the date of 3/31/08 because the companies in question have not released full financial figures as of this date.
 

soco

Member
it's really hard to paint a clear picture with MS, at least. Sony could be the same way. MS throws so much shit into their entertainment business unit. Mac Office, Surface, Zune, and Windows Mobile are just a few.
 

Opiate

Member
soco said:
it's really hard to paint a clear picture with MS, at least. Sony could be the same way. MS throws so much shit into their entertainment business unit. Mac Office, Surface, Zune, and Windows Mobile are just a few.

Absolutely, I tried to acknowledge this in my first post, and Microsoft (along with SegaSammy and NamcoBandai) was one of the companies I was thinking of that wouldn't give an absolutely and precisely accurate figure.

So this isn't exact, but it paints a fairly accurate picture, I think. Also note that in the case of Microsoft specifically, the last 3 quarters have all been profitable, with over 600 million net income; it's the first quarter listed here, Q4 FY 07, that drags things down, as they allocated all losses associated with the RRoD to that accounting time frame.
 

Alfarif

This picture? uhh I can explain really!
I have nothing to add to this thread other than to say excellent thread and subscribing.
 

Opiate

Member
Got back to digging through material -- added Namco Bandai and THQ. Can anyone help me sift through the material for Ubisoft and InfoGrames/Atari? I just can't find the net income in Ubisoft's report, and Atari/InfoGrames is a bit confused because of the recent merger. Any help on those fronts would be great!
 

Opiate

Member
I've gotten some help and I've continued to add companies as I'm able to, although a few are not entirely up to date and will be updated once their full financials are made available detailing the quarter ending 3/31/08 (Ubisoft and SE are the two most prominent in that group). Nevertheless, there's a lot of information here now, and I still would love additions and corrections.

Since I have at least managed to gather information on the 15 largest public game publishers in the world, I'll start doing some large scale analysis if anyone wants to jump in. I've specifically targetted console oriented manufacturers, so the totals here are conspicuously leaving out PC revenues, as it's proving extremely difficult to track many of those companies.

1) Revenue: Total Revenue Listed Is ~54.651 Billion Dollars, significantly up over previous years I've looked at in terms of console revenue. Revenue is growing very nicely, both for the console publishers and for third parties.

2) Profit: Industry wide profits are significantly down from a few years ago, but up from last year, at ~541 Million. Examining third parties only, total income across all third party publishers is ~(84), or -84 Million dollars, meaning that major third parties, on the whole, actually lost money last year, or were effectively breaking even. This is a very stark contrast to just a few years ago. Looking at this annual report* from EA, we can see that just 5 years ago, EA was making more money alone (~577 Million) than all of the companies listed above made this year, combined -- and obviously way, way more than third parties, as the third parties listed above lost money.

Thus, from what I've been able to gather here, it seems apparent that third parties are struggling in the current environment and not living up to economic potential.

3) A few demographic breakdowns:

Profit from Japanese third party publishers (Capcom, Konami, Square Enix, SegaSammy, NamcoBandai): 519, or ~519 Million Dollar Profit.

Profit from Western third party publishers (Electronic Arts, Activision, SCi/Eidos, Midway, Take 2, THQ, InfoGrames, Ubisoft): (603), or ~603 Million Dollar Loss.

I'll add more as I can. Please, I'd really like help putting this analysis together!




*The EA report cited is very long. The information I've cited is on page 100.
 

Evlar

Banned
Opiate said:
3) A few demographic breakdowns:

Profit from Japanese third party publishers (Capcom, Konami, Square Enix, SegaSammy, NamcoBandai): 519, or ~519 Million Dollar Profit.

Profit from Western third party publishers (Electronic Arts, Activision, SCi/Eidos, Midway, Take 2, THQ, InfoGrames, Ubisoft): (603), or ~603 Million Dollar Loss.
Whoa. That's the first bit of info on GAF that's really surprised me in a good long while. I would have very confidently asserted Japanese publishing houses outside N and S would be performing on par or worse than Western publishing houses.
 

Narcosis

Member
some interesting numbers here, what I wonder though on some of these companies is how much of their revenue is based off of new products and how much is based off of older games and licensing income and whatnot. Square took in over 1 billion in revenue, yet their game output has been rather minimal lately. Are they raking in a ton off of licensing fees from other companies using their properties?
 
Narcosis said:
some interesting numbers here, what I wonder though on some of these companies is how much of their revenue is based off of new products and how much is based off of older games and licensing income and whatnot. Square took in over 1 billion in revenue, yet their game output has been rather minimal lately. Are they raking in a ton off of licensing fees from other companies using their properties?
The Japanese companies especially have a lot of non-video game divisions. According to the financial report the OP linked to, Square Enix only gets 30% of it's revenue from offline games and only 50% from games in general (the other 50% comes from publication, amusement, and other). Sega-Sammy, Namco-Bandai, and Konami are similar.
 

Opiate

Member
Bending_Unit_22 said:
The Japanese companies especially have a lot of non-video game divisions. According to the financial report the OP linked to, Square Enix only gets 30% of it's revenue from offline games and only 50% from games in general (the other 50% comes from publication, amusement, and other). Sega-Sammy, Namco-Bandai, and Konami are similar.

I'm not sure this is exclusive to Japanese publishers, but you are correct. However, in several cases (NamcoBandai, SegaSammy), because the game divisions were listed individually, I was able to succesfully isolate the game software division.

Microsoft has several other products in the division as well, for example. It's difficult to say what the overall net effect of these extraneous streams is, but I think it's fair to say it's minor, as the total streams aren't huge and are sometimes profitable and sometimes not, creating a "cancel out" effect. I stated before and agree with you, Bending, that these figures aren't absolutely and entirely exact, but I think "close" would be reasonable descriptors.

Blazin Prophet: Microsoft has made a profit in the last three quarters. However, in the quarter before that, they lost over 1 billion dollars. Therefore, the net total is a loss.
 
Opiate said:
I'm not sure this is exclusive to Japanese publishers, but you are correct. However, in several cases (NamcoBandai, SegaSammy), because the game divisions were listed individually, I was able to succesfully isolate the game software division.

Microsoft has several other products in the division as well, for example. It's difficult to say what the overall net effect of these extraneous streams is, but I think it's fair to say it's minor, as the total streams aren't huge and are sometimes profitable and sometimes not, creating a "cancel out" effect. I stated before and agree with you, Bending, that these figures aren't absolutely and entirely exact, but I think "close" would be reasonable descriptors.
Yeah I know the western devs have non-video game activities, I could be mistaken but I thought it was more pronounced in Japan. I'm sorry, I didn't mean to sound as if I were calling you out or disagreeing with you (especially since as I failed to note I like this thread concept a lot), just answering Narcosis' question about where Square Enix gets all of its money.
 

Opiate

Member
Bending_Unit_22 said:
Yeah I know the western devs have non-video game activities, I could be mistaken but I thought it was more pronounced in Japan. I'm sorry, I didn't mean to sound as if I were calling you out or disagreeing with you (especially since as I failed to note I like this thread concept a lot), just answering Narcosis' question about where Square Enix gets all of its money.

No, please! That wasn't a complaint on my behalf. You're mostly right, I just wanted to clarify. I think the way you've put it here in this post is correct: both the East and the West do it, but it's more pronounced in Japan. That seems fair, and it's an important point to note.

If anyone can find a way to separate SE's game division, I'd love it (I can find Game Operating Income, but not Net Income). Otherwise, this will have to suffice as a close-but-not-exact picture.

And again, I continue to welcome all additions and corrections, including yours.
 

legend166

Member
Cool thread.

Something I just did quickly was add up everyone who was just making profit. Didn't include the companies making a loss.

It doesn't even add up to half of Nintendo's profits. Really puts it into perspective. I really do believe that if the Wii had been another GameCube, the industry would be seeing contraction. I know it's an impossible situation, because you can't look at it in a bubble, etc, but still.
 

BorkBork

The Legend of BorkBork: BorkBorkity Borking
I'm very surprised to see that Konami's doing so well, considering that their output's not been that abundant this generation outside of soccer and dance dance revolution games.

Excellent work, Opiate. I appreciate the effort you put into this.
 

Zyzyxxz

Member
Hmm Take Two should be in the black right? Didnt GTA4 come out Q2?

Anyway I am surprised Konami is doing better than Capcom
 

Vinci

Danish
Hey, Opiate, I wish I could help you collect data for this thread but I'm sadly not Sales Ager enough to do so. But I'm going to find this thread immensely useful and think it's awesome that you're accumulating all of this for everyone.
 

Opiate

Member
There is enough data available for this quarter to begin updating again. All figures are still in US dollars.

Sony Gaming Segment Q1 FY 08:
2,166; ~2.166 Billion Dollar Revenue.
51; ~51 Million Dollar Profit.

Microsoft Entertainment and Devices Division Q4 FY 08:
1,575; ~1.575 Billion Dollar Revenue.
(188); ~188 Million Dollar Loss.

Konami Corporation Q1 FY 09:
650; ~650 Million Dollar Revenue.
53; ~53 Million Dollar Profit.

SegaSammy Holdings Inc Consumer Division Q1 FY 09:
305; 305 Million Dollar Revenue.
(40); ~40 Million Dollar Loss.

Electronic Arts Inc Q1 FY 09:
804; ~804 Million Dollar Revenue.
(97); ~97 Million Dollar Loss.

NamcoBandai Holdings Q1 FY 09:
825; ~825 Million Dollar Revenue.
9; ~9 Million Dollar Profit.

Take Two Interactive Q2 FY 08:
539; ~539 Million Dollar Revenue.
98; ~98 Million Dollar Profit.

Nintendo Company Q1 FY 09:
3,884; ~3.884 Billion Dollar Revenue.
~1 Billion; 1 Billion Dollar Profit.

Midway Games Inc Q2 FY 08:
23; ~23 Million Dollar Revenue.
(22); ~22 Million Dollar Loss.

SquareEnix Company Q1 FY 09:
273; ~273 Million Dollar Revenue.
26; ~26 Million Dollar Profit.

THQ Incorporated Q1 FY 09:
137; ~137 Million Dollar Revenue.
(27); ~27 Million Dollar Loss.

Capcom Company Q1 FY 09:
150; ~150 Million Dollar Revenue.
~27; 27 Million Dollar Profit.

I will continue to add when I have time and as reports come in.
 

FrankT

Member
MS made a profit last fiscal year and a loss last fiscal quarter for the division.

MS Fiscal 08 Q1 07-Q4 08
$426 million operating profit

Q4 08
$188 million Loss
 

stuminus3

Banned
Look here, I've put together a definitive comprehensive financial picture of the industry.

nintendo.jpg
 

Stop It

Perfectly able to grasp the inherent value of the fishing game.
So, the 1st/2nd Quarter results match last years FY mostly, and it shows that many Western publishers are in deep trouble by and large while Japanese publishers are making modest profits.

Also, Sony are slowly turning around the epic losses they made in 2006/early 2007 and have broke into profit, MS again having a slow Q4 to last year (Darn their accounting practices) but will profit in the FY this year no doubt, and Nintendo.....er...lets just say I need a time portal to 2003.
 

Opiate

Member
I'll keep this updated as I can: will get YoY improvement/decline soon. Please keep in mind that a few corporations (Ubisoft and InfoGrames are two examples) do not give out quarterly net income, but only do so on an annual or semi annual basis. This means that a few major companies won't get updated for a while -- I'm not just ignoring them.
 
AtreyU said:
Take nintendo out of that list and the industry would look like it was in deep trouble.
If it weren't for Wii and DS, the industry would be in the middle of the second video game crash.
 

Opiate

Member
Captain Smoker had been handling these duties for some time (thanks very much), but since it has now gone untended, I'll pick this thread back up again. Repeating the OP:

This thread is going to require a lot of help, as frankly I've just gotten started compiling the information. I'd greatly appreciate any and all assistance if anyone else finds this interesting.

The goal of the thread is to put together the basic, rudimentary information about as many major gaming software publishers as possible -- that basic information being their profit and revenue. Some companies won't be viewable as they are privately owned, and others may at least be obfuscated by departmental overlap with separate industries. But it should be a fairly good indication of the trends and strength of the industry as it currently stands, as most of the major players in the industry have transparent and publicly available financial records.

I'm going to start simply with the last 4 quarters, and if this thread goes well, I'll build from there. In some cases (Sony, Nintendo), that's exactly the last fiscal year, but in other cases, it will show some overlap. Again, if someone could snag more info for me, I'd love it, and I'll throw it right up. All corrections are welcome as well, as I'm sure this isn't perfect. Here we go! Exact figures given in millions of dollars, and then approximations for those who may not be inclined to accounting. All figures in US Dollars, and profit/loss bolded as most significant statistic.


I'll add the quarterly results this time, with profit offered in millions of dollars, as most of these companies operate on far smaller economies of scale.

In addition, I'm switching to Operating Income rather Net Income. Net Income represents a far more realistic depiction of genuine economic profits, but unfortunately many of the larger companies choose to obscure their net income on a per product basis by segmenting their business and then leaving net income unreported for those segments (as they are not legally obligated to divulge).

Nintendo FY 2010:
15.91; ~15.91 Billion Revenue.
2.55; ~3.96 Billion Profit.

Nintendo Q4 2010:
2,800; ~2,800 Million Revenue.
670; ~670 Million Profit.

Sony Networked Products and Services FY 2010:
17.47; ~17.47 Billion Revenue.
(.92); ~.92 Billion Loss.

Sony Networked Products and Services Q4 FY2009:
4.1; ~4.1 Billion Revenue.
(.05); ~50 Million Loss.

Microsoft ED Q4 2009, Q1-3 2010:
7.65; 7.65 Billion Revenue.
.72; ~.72 Billion Profit.

Microsoft ED Q3 2010:
1.67; 1.67 Billion Revenue.
165; 165 Million Profit.

Electronic Arts FY 2010:
3.65; ~3.65 Billion Revenue.
(.83); ~.83 Billion Loss.

Electronic Arts Q4 2010;
.98; ~.98 Billion Revenue.
83; ~83 Million Profit.

Activision Blizzard Q2-4 FY 2009, Q1 FY 2010:
4,606; ~4.6 Billion Revenue.
.18; ~180 Million Profit

Activision Blizzard Q1 2010:
1,308; ~1.31 Billion Revenue.
381; ~381 Million Profit.

Capcom FY2010:
741; ~741 Million Revenue.
(61.97); ~62 Million Profit.

Capcom Q4 FY2010:
187; ~187 Million Revenue.
8.65; ~8.65 Million Profit.

Konami FY2010:
1,578; ~1.58 Billion Revenue.
238; ~238 Million Profit.

Take 2 Interactive Q2-4 FY2009, Q1 FY2010:
1,131; ~1.13 Billion Revenue.
(167); ~167 Million Loss.

Square Enix Holdings Games and Mobile Divisions FY2010:
2,550; ~2.55 Billion Revenue.
314; ~315 Million Profit.

SegaSammy Holdings Consumer Division FY2010:
1,348; ~1.35 Billion Revenue.
70; ~70 Million Profit.

NamcoBandai FY2010:
4,199; ~4.2 Billion Revenue.
(331); ~331 Million Loss.

Ubisoft FY 2010:

1,068; ~1.01 Billion Revenue.
(74); ~74 Million Dollar Loss.

THQ FY2010:
899; ~899 Million Revenue.
(9); ~9 Million Loss.

Disney Interactive Q3-4 FY2009, Q1-2 FY 2010:
646; ~646 Million Revenue.
(254); ~254 Million Loss.

InfoGrames/Atari Q1-2 FY 2010:
84; ~84 Million Revenue.
(27); ~27 Million Loss.

TecmoKoei FY2010:
376.9; ~377Million Revenue.
28.4; ~28.5 Million Profit.




I will update this as I can. I need to sleep shortly to be ready for work in the morning.
 

Opiate

Member
Updated significantly. I will add the individual quarters as soon as I can. Some interesting notes and cross sections:

SCi/Eidos and Midway are no longer listed because they no longer exist. However, I was able to add Disney's Interactive Media Division.

All companies tracked comprise well over 90% of the market.

Whole market profit/loss: 2,934; ~2.934 Billion Profit.
Market without Nintendo: (1,026); ~1.02 Billion Loss.
Third parties: (826); ~826 Million Loss.
Western Third Parties: (1,181); ~1.2 Billion Loss.
Eastern Third Parties: 354; ~354 Million Profit.

So, overall, the market is still growing strongly. However, that growth is hugely disproportionate towards a single company (Nintendo), with Western Publishers still struggling mightily and Eastern Publishers still doing well.

A few of the "winners" won even bigger, such as SquareEnix, while others did not profit as greatly (Activision) and others actually significantly reduced their fortunes (Ubisoft).

However, the general situation hasn't changed much. Third parties were struggling two years ago, and continue to struggle. Sony and Electronic Arts continued to lose enormous amounts of money. The most significant change is Microsoft, which has succesfully swung from significant losses to significant profits.
 

Alfarif

This picture? uhh I can explain really!
Nintendo is absolutely ridiculous. They make up... well... the market. That is one hell of a well-managed company if ever there was one.
 

Kilrogg

paid requisite penance
Thanks for the hard work. It's likely I won't be of much help, but I'll let you know if I come across interesting data.
 
What happened to that list of fiscal year profits for Sony's Game Segment, Nintendo and Microsoft's Entertainment Division going back to 1981? If I remember correctly, Sony's Game Segment has "only" made ~$2b in cumulative profit since entering the industry, while Nintendo has made ~$30b. (Microsoft's Entertainment Division being cumulatively in the red by some order of billions, of course.)
 
Opiate said:
Updated significantly. I will add the individual quarters as soon as I can. Some interesting notes and cross sections:

SCi/Eidos and Midway are no longer listed because they no longer exist. However, I was able to add Disney's Interactive Media Division.

All companies tracked comprise well over 90% of the market.

Whole market profit/loss: 2,934; ~2.934 Billion Profit.
Market without Nintendo: (1,026); ~1.02 Billion Loss.
Third parties: (826); ~826 Million Loss.
Western Third Parties: (1,181); ~1.2 Billion Loss.
Eastern Third Parties: 354; ~354 Million Profit.

So, overall, the market is still growing strongly. However, that growth is hugely disproportionate towards a single company (Nintendo), with Western Publishers still struggling mightily and Eastern Publishers still doing well.

A few of the "winners" won even bigger, such as SquareEnix, while others did not profit as greatly (Activision) and others actually significantly reduced their fortunes (Ubisoft).

However, the general situation hasn't changed much. Third parties were struggling two years ago, and continue to struggle. Sony and Electronic Arts continued to lose enormous amounts of money. The most significant change is Microsoft, which has succesfully swung from significant losses to significant profits.

Jeeze, that's pretty damn frightning! And even then, Nintendo's profits dropped significantly this year!

Amazing how so many within the industry want Nintendo gone, when they're more or less the one main company keeping it afloat!
 
Opiate said:
Updated significantly. I will add the individual quarters as soon as I can. Some interesting notes and cross sections:

SCi/Eidos and Midway are no longer listed because they no longer exist. However, I was able to add Disney's Interactive Media Division.

All companies tracked comprise well over 90% of the market.

Whole market profit/loss: 2,934; ~2.934 Billion Profit.
Market without Nintendo: (1,026); ~1.02 Billion Loss.
Third parties: (826); ~826 Million Loss.
Western Third Parties: (1,181); ~1.2 Billion Loss.
Eastern Third Parties: 354; ~354 Million Profit.

So, overall, the market is still growing strongly. However, that growth is hugely disproportionate towards a single company (Nintendo), with Western Publishers still struggling mightily and Eastern Publishers still doing well.

A few of the "winners" won even bigger, such as SquareEnix, while others did not profit as greatly (Activision) and others actually significantly reduced their fortunes (Ubisoft).

However, the general situation hasn't changed much. Third parties were struggling two years ago, and continue to struggle. Sony and Electronic Arts continued to lose enormous amounts of money. The most significant change is Microsoft, which has succesfully swung from significant losses to significant profits.

This is yearly profits postings, right?

There's also the fact that sometimes a company might manage to post better profits because of a single game. Sometimes there's such a big hit on a title that it turns the company's fortunes around.

Still, it boggles me that a company like EA, who has so many titles that are million plus sellers, still doesn't manage to post profits.
 

RJT

Member
Nuclear Muffin said:
Amazing how so many within the industry want Nintendo gone, when they're more or less the one main company keeping it afloat!
Well, I guess people think that with Nintendo gone the money will go elsewhere. I still think the problem is costs, not revenues. I'm pretty sure the reason Japan companies are profitable is because they develop a lot of portable games. Next gen is not a lucrative business.
 

Celine

Member
Tim the Wiz said:
What happened to that list of fiscal year profits for Sony's Game Segment, Nintendo and Microsoft's Entertainment Division going back to 1981? If I remember correctly, Sony's Game Segment has "only" made ~$2b in cumulative profit since entering the industry, while Nintendo has made ~$30b. (Microsoft's Entertainment Division being cumulatively in the red by some order of billions, of course.)
the 1981 onward is only for Nintendo on their japanese site.
On GAF there is the chart from 1998 onward.
SCEE overall has made US$ 300 million, if memory serves me.
Nintendo ? Nintendo doesn't count :D
 

Opiate

Member
Updated a few more quarterlies. Will get more (perhaps the rest) this evening, and I'll try to do my best to keep these updated from every quarter from here on.

Can anyone pinpoint any publishers I've missed? I'd like to get both Bethesda Softworks and Lucasarts, but both are impossible because they're private and thus are not legally obliged to divulge corporate earnings statements.

It stands to reason that LucasArts is doing very poorly (laid off 50% of staff in the last year or so, and the CEO just left) while Bethesda Softworks is doing well (increasing publisher duties to an increasing lineup of titles), but that's about all I can add.

I'd also like to link this thread to a thread about small time developers, if one exists. Small time developers certainly won't have earnings statements, but we often will get reports of developers adding a studio (such as Insomniac) or shutting down (such as Flaghship). I think Mario put together a thread similar to this: if anyone can find it, please let me know.
 

sflufan

Banned
There is a LOT more to painting a "comprehensive" financial picture of the industry that a cursory examination of revenue/profit/loss.

You also have to look at the balance sheets and cash flow statements of these companies to better judge their ability to sustain as a going concern.

For the balance sheet, you'll have to conduct ratio analyses on current assets to current liabilities (quick ratio), the debt to equity ratio, etc. This will provide a picture of the overall "health" of a company.

For the statement of cash flows, you'll be able to see if they are able to translate that profit into ACTUAL cash -- something that quite a lot of people miss. It's entirely possible for a company to be profit rich and cash poor!
 
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