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Forums - Sales Discussion - Take-Two Reports PS3 Biggest Revenue Generator

DarkNight_DS on 18 December 2008
--OkeyDokey-- said:
DarkNight_DS said:
@SpartanFX: I didn't disagree but if you don't make profit off what you are doing. What's the point? If the PS3 is their biggest revenue generator and it's where most of their games were bought for. This means the PS3 was also the biggest reason they lost money.

Um... how can PS3 be both the biggest generator of revenue and the biggest contributor to their losses? For that to make sense, they'd have to be losing money on each game they sold :S

Exactly what's happened.  Games don't turn a profit until X amount are sold.  They lost money off each game sold as they never met the magic sales number.

 



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

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DarkNight_DS on 18 December 2008
SpartanFX said:
that's their mistake in management
they can focus on HD console while giving more titles to wii and DS to make more money.

the thing is that the cost for going HD is high but once they are done with the engines and optimizations ,then it's pure cash for them since HD console owners buy lot's of games.

Why do you keep blaming management?  Until we know how much their managers make, you can't put all the blame there.  For all we know the programmers might have run the budgets through the roof.  Management may have allowed it but if it wasn't allowed, maybe the money they'd already spent might have been for not.



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

Spankey on 18 December 2008
DarkNight_DS said:
--OkeyDokey-- said:
DarkNight_DS said:
@SpartanFX: I didn't disagree but if you don't make profit off what you are doing. What's the point? If the PS3 is their biggest revenue generator and it's where most of their games were bought for. This means the PS3 was also the biggest reason they lost money.

Um... how can PS3 be both the biggest generator of revenue and the biggest contributor to their losses? For that to make sense, they'd have to be losing money on each game they sold :S

Exactly what's happened.  Games don't turn a profit until X amount are sold.  They lost money off each game sold as they never met the magic sales number.

 

take a peek at the report here:

http://www.vgchartz.com/forum/thread.php?id=53400&page=1

so with PS3 having an increase from 5% to 35% it's now a bad thing?

and I suppose MS going from 44% to 28% is a good thing now?

The mind boggles.

Besides, the report is for three months. take comfort in knowing the 360 is still ahead YoY



Proud Sony Rear Admiral

Serious_frusting on 18 December 2008
DarkNight_DS said:
@SpartanFX: I didn't disagree but if you don't make profit off what you are doing. What's the point? If the PS3 is their biggest revenue generator and it's where most of their games were bought for. This means the PS3 was also the biggest reason they lost money.

well i should think that they make a profit on each game sold, that being the case the ps3 would have made the most money and a better chance at making a profit. i could spin it just like you and say the lack luster revenue generated by the 360 and wii cutted into the profits from the ps3 to create an overall loss, hey i could go as far as to say go PS3 exclusive and gain profits. see what i did????

Nobody's perfect. I aint nobody!!!

Killzone 2. its not a fps. it a FIRST PERSON WAR SIMULATOR!!!! ..The true PLAYSTATION 3 launch date and market dominations is SEP 1st

DarkNight_DS on 18 December 2008
Serious_frusting said:
DarkNight_DS said:
@SpartanFX: I didn't disagree but if you don't make profit off what you are doing. What's the point? If the PS3 is their biggest revenue generator and it's where most of their games were bought for. This means the PS3 was also the biggest reason they lost money.

 

well i should think that they make a profit on each game sold, that being the case the ps3 would have made the most money and a better chance at making a profit. i could spin it just like you and say the lack luster revenue generated by the 360 and wii cutted into the profits from the ps3 to create an overall loss, hey i could go as far as to say go PS3 exclusive and gain profits. see what i did????

A game does not bring in profit until the money that was used to make the game, market the game, purchase the discs it's written to, etc. is recouped.  This is the difference of revenue and profit.  Revenue is the money your company brought in.  Profit is the extra money you brought in over your expenses.  They don't make a profit off every game they sell.  The only make a profit once X amount of games get sold.  The only thing we know from T2's statements is that the Wii and DS made them money, or at least the games released on those systems brought in more money then it cost to bring the game to store shelves.

T2 may have lost more money off the PS3 or more money off the 360.  Chances are they put more dev time into the PS3 games then the 360 ones.  They also spent more money on PS3 discs (Bluray discs are still a premium over DVD discs). We know they had a lot of problems programming for the PS3 at the beginning of the year.

 



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

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OooHHHWEE on 18 December 2008

The reason the ps3 made more in that quarter is because BIO SHOCK came out in that quarter it is not a full years revenue PS3 BIO SHOCK came out 10/21/08 in this quarter.



DarkNight_DS on 18 December 2008
Spankey said:
DarkNight_DS said:
--OkeyDokey-- said:
DarkNight_DS said:
@SpartanFX: I didn't disagree but if you don't make profit off what you are doing. What's the point? If the PS3 is their biggest revenue generator and it's where most of their games were bought for. This means the PS3 was also the biggest reason they lost money.

Um... how can PS3 be both the biggest generator of revenue and the biggest contributor to their losses? For that to make sense, they'd have to be losing money on each game they sold :S

Exactly what's happened.  Games don't turn a profit until X amount are sold.  They lost money off each game sold as they never met the magic sales number.

 

take a peek at the report here:

http://www.vgchartz.com/forum/thread.php?id=53400&page=1

so with PS3 having an increase from 5% to 35% it's now a bad thing?

and I suppose MS going from 44% to 28% is a good thing now?

The mind boggles.

Besides, the report is for three months. take comfort in knowing the 360 is still ahead YoY

If going from 5% to 35% means you lost money, then yes it's a bad thing. It means they spent too much money on the wrong systems for too little in returns.

 



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

izaaz101 on 18 December 2008
Serious_frusting said:
DarkNight_DS said:
@SpartanFX: I didn't disagree but if you don't make profit off what you are doing. What's the point? If the PS3 is their biggest revenue generator and it's where most of their games were bought for. This means the PS3 was also the biggest reason they lost money.

 

well i should think that they make a profit on each game sold, that being the case the ps3 would have made the most money and a better chance at making a profit. i could spin it just like you and say the lack luster revenue generated by the 360 and wii cutted into the profits from the ps3 to create an overall loss, hey i could go as far as to say go PS3 exclusive and gain profits. see what i did????

 

Or you could argue that making the PS3 version of the games turned out to be more difficult than they anticipated, so they had to increase the amount of personnel to make the games, which increased the cost of the games, and couldn't be recovered, even with the higher sales of the PS3 version.



Serious_frusting on 18 December 2008
DarkNight_DS said:
--OkeyDokey-- said:
DarkNight_DS said:
@SpartanFX: I didn't disagree but if you don't make profit off what you are doing. What's the point? If the PS3 is their biggest revenue generator and it's where most of their games were bought for. This means the PS3 was also the biggest reason they lost money.

Um... how can PS3 be both the biggest generator of revenue and the biggest contributor to their losses? For that to make sense, they'd have to be losing money on each game they sold :S

Exactly what's happened.  Games don't turn a profit until X amount are sold.  They lost money off each game sold as they never met the magic sales number.

 


ievery game you sell makes profit, more games sold means more profit. unless you are saying that the profits off each ps3 game is so small that they were still not able to to sell enough games to make a profit, i doubt it though

Nobody's perfect. I aint nobody!!!

Killzone 2. its not a fps. it a FIRST PERSON WAR SIMULATOR!!!! ..The true PLAYSTATION 3 launch date and market dominations is SEP 1st

wfz on 18 December 2008

I'm amazed at how almost no one in this thread seems to realize the difference (or don't seem to realize the importance) between profits and revenue. You also have to take development costs of the games into account.