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Forums - Gaming Discussion - So Nintendo Q2 profits > Sony gaming division Q2 profits

 

Which company will have better results come fiscal year end in 2015?

Sony 88 20.00%
 
Microsoft 82 18.64%
 
Nintendo 225 51.14%
 
Ouya 45 10.23%
 
Total:440
noname2200 said:

The Wii U was overpriced since Day One. It wasn't profitable though

Are you saying that logically, since the wiiU was overpriced and wasn't profitable, then the same applies to the 3ds?



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theprof00 said:
noname2200 said:

The Wii U was overpriced since Day One. It wasn't profitable though

Are you saying that logically, since the wiiU was overpriced and wasn't profitable, then the same applies to the 3ds?

No I'm saying that, logically, since the Wii U (and original 3DS) were sold at a loss for a long time, notwithstanding their high price points, we can no longer assume overpriced still means profitable for Nintendo hardware.



czecherychestnut said:
The PS4 install base is growing far more rapidly than the Wii U's/3DS combo, meaning Sony's ability to generate profit off that growing install base is more than Nintendo's ability to do so.

Regarding XB1, tough one because MS have stopped providing actual profit/loss statements for each segment (just keeping it to change in revenue and change in cost of revenue, which tells you little). We do know that the cost of revenue within xbox has been increasing faster than revenue since the XB1 was released, but we don't know where the tipping point is before the actual cost of revenue is higher than revenue (signifying a loss). With some massive games coming out for xbox though this Christmas, I expect MS to clean up this holiday, with the only risk being that the price cut on the XB1 and heavy bundling cuts heavily into profits.

I'm gonna go with Sony by a hair, then MS, and then Nintendo.

That's correct. However, historically Sony hasn't been able to control their spending very well. That is what has got this company in such dire straits financially. SCE has been very successful with getting their console to market, but it has cost them massive amounts of money in marketing among other things. If the sales of the PS4 start slowing, which they eventually will, hopefully it will be a time where they are able to track the line and continue to be sustainable. It is a long time away and hopefully Sony has learned from their mistakes with the PS3, but they need to ensure they reach that line of sustainability, I don't think they are there yet and the general desire for a PS4 seems to be waning, but it could be because of a bit of a deseriable software drought.



Gotta figure out how to set these up lol.

Ninsect said:
Deeds said:

Sony will likely not beat Nintendo in profit. Nintendo sells a lot of their own software on the Wii U plus they have the dominant handheld where their own software drives much of its sales as well. This is why Microsoft want to "copy" Nintendo's business model. In order for Sony to beat Nintendo's profitability they may either have to resurrect the Vita lol or the PS4 has to perform Jesus style miracles in "sales" going foward.

You say resurrect Vita yet it outsold WiiU in the past quarter (700k vs. 610k).

That's not true at all. Sony combines PSP and PSV shipments. You really think that a system selling on average 20k per week shipped 700k? Lol, give me a break man.



Predictions for LT console sales:

PS4: 120M

XB1: 70M

WiiU: 14M

3DS: 60M

Vita: 13M

tagging.

unrelated video:

 



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Teeqoz said:

What? Sony has released four of their big guns? Since when? They've released ZERO of their big guns, and anyone saying that they've released FOUR is just plain wrong.


I think he's talking about #Driveclub, Killzone, and Infamous (no clue what #4 would be) as they were/are pretty big titles for the console and have been for years now (Infamous, and to a lesser extent Killzone) or been talked about as such (Driveclub).

They still have Uncharted and Bloodborne in the near, announced future, but their exclusives have not really set the world on fire at current.



MK8 really did help nintendo Q2.

but im impressed with 3DS software in japan.
probably 5 2 million sellers in a row until end of year!
YW2, MH4, SSB4,Pokemon ORAS, and YW2,5.

I think this is saving nintendo. Not wii U, MK8, amiibo nor wii U smash, is japan 3DS software.



theprof00 said:
Teeqoz said:
theprof00 said:
Thing is, both companies use different models.
Nintendo makes money off console and software.
They'll make good money off the consoles, and really good money off their upcoming software releases.

Sony on the other hand have a razorblade model. They lose money on the console and hope to make it back with sofware. The Sony software lineup isn't stellar, but there are some good looking AAA games coming out. I don't see them performing really well though. Maybe 5m max for new uncharted, 3m for bloodborne.

I think it's possible for nintendo to edge them out, but it really depends if Sony can bring the software.


First of all, UC 4 will pass 5 million easily, it'll probably come close to 10 million or more. Second of all, Sony makes money on hardware (not much for the PS4 though, but they don't lose money on it) and third of all Sony earns money from third party titles being sold on their system, Nintendo well, they don't really sell that much third party software (on the Wii U anyway). 

You think uncharted will sell on par with halo?

Not likely. It's a new system with 12.3m sold. Even if sony sold an additional 7m consoles during the holiday, and an additional 20m next year, 1 in 4 ps4 owners would have to buy it. UC has never had that kind of attach rate.

Even uncharted 2 only sold 6.5, let's say 7 for digital included. And that was with an install base of 40m. Uncharted 3 has the same numbers but released with a 65m userbase. That's 1 in 10.

The highest selling game on ps4 right now is destiny, made by bungie, huge marketing campaign, and best selling new IP ever...and that's only 3.3m

5m is generous.

Sony doesn't "make money" on hardware. They are "profitable" on hardware, which is a calculation figuring in one game, an extra controller, and the system etc. And yes, Sony makes money on third and second party as well. My point is that Sony needs install base and games sales. I think it looks very good for them, but you must agree that it's a tough comparison to nintendo. They recently released a new version of 3ds that is going to sell a lot, is overpriced, has a new smash brothers, etc. On top of which, Nintendo usually outperfoms everyone by a lot in holidays. Remember also that Vita isn't doing so hot.

Let's pretend vita and wiiU make the same amount of profit and cancel them out.
What we are then dealing with is deciding what will be more profitable, 3ds or ps4. Gut is telling me 3ds, though ps4 has a very good chance.


Try harder: http://www.dualshockers.com/2014/05/22/kaz-hirai-the-ps4-is-already-profitable-with-hardware-alone/

The same however can't be said about the Wii U.

And yes, I expect UC4 to do waaaay more than 5 million. When Destiny has managed 3,3 million in a month, on an installbase of ~ 12,3 (most likely undertracked though), I'm sure UC4 will do more.

 

let's assume software royalties are 10 dollars per game (which is in the right ballpark based on what we know), and let's also say cod sells 7-8 million on PS4+PS3. That's 70-80 million profit from Cod alone. Then we also have GTA:V remastered, which could pull some 3 million maybe. Then there's FarCry 4 which will also do some 3-4 million at least on PS platforms. Then there's LBP3, which will probably have a profit margin of 30$ per copy sold. Even if that only sells 2 million on PS3 and PS4 combined this year, then that's 60 million profit.Then there's all the other software continuosly being sold on the PS3. Add to that profits from hardware (rember I showed you PS4 alone has been profitable since may) of roughly 15 dollars (fairly modest) and assumed sales of 7 million in the holidays, that is another 105 million dollars of profit.



Ninsect said:
Deeds said:

Sony will likely not beat Nintendo in profit. Nintendo sells a lot of their own software on the Wii U plus they have the dominant handheld where their own software drives much of its sales as well. This is why Microsoft want to "copy" Nintendo's business model. In order for Sony to beat Nintendo's profitability they may either have to resurrect the Vita lol or the PS4 has to perform Jesus style miracles in "sales" going foward.

You say resurrect Vita yet it outsold WiiU in the past quarter (700k vs. 610k).


except 700k are PSP + Vita, so Wii U > Vita in the end



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Pavolink said:
Nice numbers Nintendo. Of course some will try to spin it to something negative or defend Sony, but numbers are cold. Hopefully this the ray of light at the end of the corridor for them and come with a great experience in the future like the Wii/DS generation.

You should read that new Polygon article. Scrap that, you shouldn't. :D