Quantcast
Activision are idiots? PS2/PS3 accounts for 40% of all gaming revenue

Forums - Sales Discussion - Activision are idiots? PS2/PS3 accounts for 40% of all gaming revenue

mario64 said:
@Aiemond : It would hurt Actibliz much more than Sony gamers. Actibliz (which is mostly Bliz actually) has 2 meaningful games on consoles : guitar hero (but rockband would still be on PS3 and would sell take those sales to those 22 million owners), and call of duty (available on PC), which would increase competing shooters sales on PS3 (MAG, Killzone 2...).

It doesn't make sense to cut support to 22 million PS3, which could become 30 million or more when GT5 is released... There are only 30 million 360, that's not that much more...


WoW what a major spin. I laughed 3 times.

  1. Rockband sales would take Guitar Hero sales
  2. You try to say the loss of CoD wouldn't be THAT bad, because it is on PC.
  3. The loss of CoD would increase sales of MAG and Killzone 2

I need to say that I think Activision won't cut its suppport.

But just imagine: IF they did this, it would probably mean Game Over for PS3 in the West. Guitar Hero / Call of Duty / Tony Hawk  are just too big to compensate.



There once was a great sig here, but it got killed.

A moment of silence would be appreciated.

Around the Network
bonkers555 said:
I think your math is way off. How is the PS2/PS3 40% of revenue? It seem only around 18% of the total revenue.

If that is true, then the PS3 counts for less than 10% of all home console versions of the Playstation brand (PS2 and PS3).  So, it does look like there is a justifiable case for the PS3 not being supported by Activision, if trends continue.  If the percentage of total sales remains below 10%, and gets even worse, you can see Activision saying it isn't worth it, and they then decide to optimize their coding for the 360.  And, in regards to the PS2, it should be seen as on its last legs.  The PS3 doesn't play its games, and it doesn't do anything unique like the Wii, that appeals to casual fans.  So, we are looking PSP and PS3, and if Activision drops the PS3, and Sony then says "No PSP for you", then Activision would go "fine".

EA didn't support the Dreamcast, so Activision MIGHT decide to not support the PS3 down the road, if sales remain as they are, and portion of the marketplace shrinks.  Not saying this WILL happen, but MIGHT.



leo-j said:

According to Kotaku the PS3/PS2 combined account for 40% of all of Activision's gaming revenue in 2008, yet Activision let out a threat to sony not to long ago saying they would stop supporting the Playstation platforms all together in a year if something isn't done about hardware sales.

Then this came along..

http://kotaku.com/5161882/so-which-console-is-buttering-activisions-bread

 

 

A few things people forget to account for.


First, PS3 was 8 percent of the revenue in 2008. It may be less in 2009, we don't know but I am sure they have a good idea where it will be. And his statement was forward looking, saying if things go down from here in 2010 or 2011 we may drop support. So he may be saying that if it drops to 4 percent we will drop support for it, we do not know the number he has in mind but there is one low enough that anyone would agree it is worth dropping. And do not forget that revenue is not equal to profit and that the share of profit generated could be significantly different then the revenue share.

The second thing is there is opportunity cost when developing for any system. Meaning if that it is not just a question of am I making money on the platform but could I be making more if I put the same money into another platform. For example say the cost of a typical game developed on 360 ported to PS3 is $3 million, obviously assuming a huge savings because it is a port. For every two PS3 titles released a high quality Wii game could be built or a budget 360 game or they could probably build 10 for mobile. If any of those games could have enough of a market to make more of a profit then the PS3 port then it is in the companies best interest to drop the PS3 and put the money into the other platforms.

Lastly there are cost savings in supporting fewer platforms because you can scale the fewer platforms to higher levels making them more resource efficient. To give a trivial example that can scale up imagine you had only one team per platform. Project resource demands are on a parabolic curve where you need only a few people in the beginning but scale up to a massive team by the end. With only a single team it is very hard to keep everyone busy all the time. As you add projects you can schedule them such that the peak in one overlaps with the valley in another and use your resources more efficiently. As you add more teams this efficiency increases. This same concept works for other departments such as marketing and even into HR as well as for capital expenses such as hardware and software licenses. Of course if all of your platforms already have enough projects that they are highly efficient then this is less important, but it is something to watch for as the number of titles for a platforms goes down.


I am not saying Activision really meant they would drop support for Sony soon or at all, I do not know enough about their business to be able to say. What I am trying to remind people of though is to not dismiss something so casually because there are conditions for everything where what seems unthinkable one day becomes a reality the next and you never now where that tipping point is.



mario64 said:
It would hurt Actibliz much more than Sony gamers.


Nope.

You would be right if it was another third party publisher, but when you're talking about Activision, E.A. and maybe even Ubisoft, that wrong. Some of their licence are strong enough to drive console sales.

Loosing COD, GH, Tony Hawk, Dreamworks and Lucasarts franchises would be a huge hit for Sony (not to mention how bad it might look if some Sony movie-games were not released on the PS3). Maybe not as much as loosing E.A. [Sports], but surely enough to give a definitive edge to the X360.

Kotic's threat was clumsy, but so was the answer from Sony, dismising it as if it was nothing, while the original claim (PS3 price cut) can currently be heard from so many developer's mouth.



Activision blizzard makes the most money out of the wii yet they only give it crap games. Why don't they make a good game for it once... Sick and tired of all this crap ports.



Around the Network

Nice fanboy spin, but I think I'll believe what every professional said more than a handful of fanboys on an unknown board : 'It doesn't make sense and it's a bluff. They'd shoot themselves in the foot.'

Plus, honestly I never bought a single Activision game (except COD4 on my PC), so I don't even see why I would care, even less why Sony would be so doooomed. I would be more important if he was talking about the 360 since they had zero AAA exclusive this year and 360 fans are mostly shooter fans. PS3 had Killzone 2 anyway which easily kills COD4.



there's a difference between revenue and profit. We don't know what are the individual costs of creating PS3 games nor do we know what royalties does activision pay per copy sold



mario64 said:
Nice fanboy spin, but I think I'll believe what every professional said more than a handful of fanboys on an unknown board : 'It doesn't make sense and it's a bluff. They'd shoot themselves in the foot.'

Plus, honestly I never bought a single Activision game (except COD4 on my PC), so I don't even see why I would care, even less why Sony would be so doooomed. I would be more important if he was talking about the 360 since they had zero AAA exclusive this year and 360 fans are mostly shooter fans. PS3 had Killzone 2 anyway which easily kills COD4.

Now that was good for a laugh. I am quoting this for others to see, because I think it's only a matter of time until this account gets permabanned.



Legend11 correctly predicted that GTA IV (360+PS3) would outsell SSBB. I was wrong.

A Biased Review Reloaded / Open Your Eyes / Switch Gamers Club

mario64 said:
Nice fanboy spin, but I think I'll believe what every professional said more than a handful of fanboys on an unknown board : 'It doesn't make sense and it's a bluff. They'd shoot themselves in the foot.'

Plus, honestly I never bought a single Activision game (except COD4 on my PC), so I don't even see why I would care, even less why Sony would be so doooomed. I would be more important if he was talking about the 360 since they had zero AAA exclusive this year and 360 fans are mostly shooter fans. PS3 had Killzone 2 anyway which easily kills COD4.

lol no COd4 kills Kz2.



 

   PROUD MEMBER OF THE PLAYSTATION 3 : RPG FAN CLUB

 

Mario64, what the...?
I'm a huge Sony fanboy, and I KNOW that if Activision drops Sony support, Sony will completely lose hold of america, as in, no chance at all of making a comeback (as much as the chances for that are slim now (hah hah, see what I did there?)), they will probably lose Europe too, the COD franchise is one of the biggest franchises right now, and guitar hero/tony hawk are not that tiny either.



Bet with Dr.A.Peter.Nintendo that Super Mario Galaxy 2 won't sell 15 million copies up to six months after it's release, the winner will get Avatar control for a week and signature control for a month.