PSN Alone Generated More Revenue Than The Entirety of Nintendo, MicroSoft's Entire Gaming Division!

Biggerboat1

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Biggerboat1 on 05 February 2019

ArchangelMadzz said:

Ka-pi96 said:

How is that not legally revenue? When I go to a restaurant and buy a $10 meal they record that as $10 in revenue. If they were to deduct the cost of the food from that and then report the reduced amount as revenue then that is what would be illegal.

Also that $40 is not a loss, it's an expense All businesses that sell products have the money they pay to the producer of said product as an expense. It would show $60 revenue, $40 expense & $20 profit for each 3rd party game sold.That's not accounting for other expenses of course, but that's the jist of how it would work.

Besides how else would their revenue be nearly ¥1.4T while their profit is ¥247.2B*. There's a ¥1.15T difference between those figures, if payments to 3rd party publishers for their games purchased through PSN doesn't count as part of that money then what on earth did they spend ¥1.15T on?

*profit figure taken from Rol's post is Apr-Dec rather than the full year like the revenue figure in OP, but even including Jan-Mar profit there would still be a huge disparity between revenue and profit so the point still stands.

You don't know how Sony could spend 10.4 billion dollars?

R&D For a new console. The server costs, game studio development costs, wage bill, all the freaking advertising they do, the amount of money they spend to manufacture the 18 million PS4's they sold this year.It used to cost $381 in 2013 to make a PS4 lets say it costs $281 now that's 5 billion dollars already accounted for.

Why would the PSN be paying for console R&D / manufacturing?

You're suggesting that Sony gaming would receive the income from those consoles & PSN would pay for them... That makes no kind of sense...

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outlawauron on 05 February 2019

Jumpin said:

While the numbers are impressive, they’re misleading since the number includes all third party sales and revenue. It’s comparing apples and oranges to only apples.

Basically, it’s a storefront on a user base of 90+ million featuring revenue generated by the software of hundreds of companies, against the sales of a single company.

Sony’s game and networking division total fall Q earnings was 7 billion USD, PSN revenue owned by them would be a portion of that 7 billion, and certainly not larger than the 5.6 billion USD in revenue of Nintendo for the same timeframe. As far as I know, Sony still makes most of their gaming income from physical sales, hardware, and peripherals; unless something went terribly wrong, it would higher than 1.4 billion USD for everything else.

While the userbases are different, Nintendo is doing the same thing as Sony. They have a digital storefront and online subscription services. Nintendo's digital earnings will continue to grow as their membership adoption increases as well as digital adoption.