From Push Square via industry insider Daniel Ahmad (ZhugeEx):

http://www.pushsquare.com/news/2019/02/psn_alone_generated_more_revenue_than_the_entirety_of_nintendo_in_2018

How big is the PlayStation Network these days? The answer: very big. Sony’s online storefront generated an eye-watering ¥1,373 billion yen (~$12.5 billion) of revenue in 2018, which is more than the entirety of Nintendo during the same period. To put this in perspective: the PlayStation maker made more money through the PSN alone than the House of Mario could manage across every component of its business.

The PSN also made more than the entirety of Microsoft’s gaming sector, which itself was up 23 per cent year-over-year. It really hammers home how important services are becoming to platform holders, as persistent games like Fortniteand subscriptions like PlayStation Plus generate significant recurring revenue for the manufacturers.

For comparison:

Sony's gaming division (2018): $20 billion
Microsoft's gaming division (2018): $11.5 billion
Nintendo (2018): $10.9 billion

I'm not sure if this model is going to be sustainable. Games as service and the proliferation of suscriptions will eventually burn people out, not everyone has enough money to pay for all the subscription entertainment demands nowadays. The fact that, after years of paying for stuff you still don't own anything is just the cherry on top.

The "PSN alone revenue > all of Nintendo revenue" has been a thing for a few years already. Not sure when I first heard it, but I think in 2016. Maybe even 2015. Prior threads didn't even deal with MS for whatever reason.

Yet they still keep raising the price.

I had no idea that microsoft gaming division was more profitable than Nintendo lol

I see this thread every three months.

Because of suckers like me that look every week to see what is on sale, and end up buying a bunch of games half off that I will probably never get to.

So 2/3 of gaming revenue only from PSN and it could be even more than 2/3 on Xbox.

Anyone an idea about Nintendo?

An obscure football manager in Scotland once said this in a televised interview "statistics are like mini-skirts - they look good but hide the most important part"

Not saying it's the best quote ever but stuck with me for the sheer randomness factor.

I think it applies here, PSN could have more revenue than Nintendo, but how that actually translates to profit is unknown and is really the only thing that matters. Revenue for show, profit for dough!