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

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

ArchangelMadzz said:
Ka-pi96 said:

They do earn or receive it though. You buy a $60 game from PSN and Sony receive $60, that's a fact. It doesn't matter that they have to pay out $40 (or whatever the actual amount is) to the publisher of the game after that, they still initially received $60.

I get that you see it that way, but it's not legally revenue when the money goes through them to be filtered off to another company. Steam's revenue reports are theirs and do not include the money that developers get. 

Think of it this way.

If they did it your way imagine how shit their profit margins in their reports would be if their earnings report showed they LOST $40 for every 3rd party game they sold. That's 100's of millions of loss every single quarter. That doesn't look good, and it's obvious that's not the way they do things. 

No, because that $40 per game loss would be offset by the $60 dollars they bring in, leaving the profit (well, you still need to take off marketing / server costs / employee salaries etc.)

I own part of a small graphics design business - we sell printing to our clients, though we don't actually print anything ourselves, we outsource. The total money we receive from clients over the year is our revenue or turnover, the amount left after we take off what we've paid the printers plus our other costs & overheads is our profit.

In this instance we're the PSN equivalent and the printers are the 3rd party devs.



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ArchangelMadzz said:
Ka-pi96 said:

They do earn or receive it though. You buy a $60 game from PSN and Sony receive $60, that's a fact. It doesn't matter that they have to pay out $40 (or whatever the actual amount is) to the publisher of the game after that, they still initially received $60.

I get that you see it that way, but it's not legally revenue when the money goes through them to be filtered off to another company. Steam's revenue reports are theirs and do not include the money that developers get. 

Think of it this way.

If they did it your way imagine how shit their profit margins in their reports would be if their earnings report showed they LOST $40 for every 3rd party game they sold. That's 100's of millions of loss every single quarter. That doesn't look good, and it's obvious that's not the way they do things. 

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.



Bet Shiken that COD would outsell Battlefield in 2018. http://gamrconnect.vgchartz.com/post.php?id=8749702

Biggerboat1 said:
ArchangelMadzz said:

I get that you see it that way, but it's not legally revenue when the money goes through them to be filtered off to another company. Steam's revenue reports are theirs and do not include the money that developers get. 

Think of it this way.

If they did it your way imagine how shit their profit margins in their reports would be if their earnings report showed they LOST $40 for every 3rd party game they sold. That's 100's of millions of loss every single quarter. That doesn't look good, and it's obvious that's not the way they do things. 

No, because that $40 per game loss would be offset by the $60 dollars they bring in, leaving the profit (well, you still need to take off marketing / server costs / employee salaries etc.)

I own part of a small graphics design business - we sell printing to our clients, though we don't actually print anything ourselves, we outsource. The total money we receive from clients over the year is our revenue or turnover, the amount left after we take off what we've paid the printers plus our other costs & overheads is our profit.

In this instance we're the PSN equivalent and the printers are the 3rd party devs.

Oh yes of course I made a math mistake there, whoops. 

Okay, think of it this way then if we all still disagree then I'm happy to just go on my way.

This number includes Online serviced, game downloads and add ons.

So by using the same logic that 100% of purchases made through the store are counted in that that means all the add ons and lootboxes are counted in that as well as those purchases are made through the store. And I don't know about you but that seems a little low to me considering the billions and billions all of these companies are making through it that goes through the PSN store and the Xbox live store. 



PS4 and PC gaming

 

PC Specs:
AMD Ryzen 9 3900x
Zotac Nvidia RTX 2070 Super
32GB DDR4 Corsair Vengence Ram 3200 mhz
1TB Samsung Qvo SSD
Corsair Spec-Delta Case
Asus ROG B450-F Motherboard

Ka-pi96 said:
ArchangelMadzz said:

I get that you see it that way, but it's not legally revenue when the money goes through them to be filtered off to another company. Steam's revenue reports are theirs and do not include the money that developers get. 

Think of it this way.

If they did it your way imagine how shit their profit margins in their reports would be if their earnings report showed they LOST $40 for every 3rd party game they sold. That's 100's of millions of loss every single quarter. That doesn't look good, and it's obvious that's not the way they do things. 

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. 



PS4 and PC gaming

 

PC Specs:
AMD Ryzen 9 3900x
Zotac Nvidia RTX 2070 Super
32GB DDR4 Corsair Vengence Ram 3200 mhz
1TB Samsung Qvo SSD
Corsair Spec-Delta Case
Asus ROG B450-F Motherboard

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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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.



Would be awesome if they made PS+ cheaper...



sounds good.