| Malachi said: Do Nintendo and Sony take the whole of the logistic of only gaming instead of EA like Xbox Live or is there some cost EA assume for these online game which is then pay back to them by these company? That's the real question it seem, because a paying service is the only meaningful difference(in term of revenue) between all of the three company. Not sure, even if that was the case, that it would account for such a difference though. That say your promise is flawed, why wouldn't the PS3 the biggest contributor to EA revenue? You only say it "doesn't make sense", which as justifcation go, is pretty low on the standard meter. Why wouldn't it be indeed? You dont start a analysis to prove something, you do one and then present the resultat, whatever you like them or not. |
Thanks for your post Malachi.
1. The GAAP, non-GAAP adjustments only exist for Wii, PS3, PS2 (consoles) and not XBox - so yes, it is strange. If everybody does the same thing, then XBox should also have some sort of adjustment.
Is there any reason for you to think why XBox will be different from the other 2 consoles?
All consoles have games made by EA that have online components - PS3, XBox - Battlefield, sports games, etc; Wii - Medal of Honor (I'm not sure about other games).
So it may reasonable to assume that it is something about online hosting. But I am not sure. That's why I have to find out.
2. Why wouldn't PS3 be the biggest console software revenue contributor? Because by all indications, including VGChartz, XBox sells more software than PS3.
EA Data - PS3 Revenue - GAAP:
Q1 08 - 13
Q2 08 - 17
Q3 08 - 102
Q4 08 - 152
Q1 09 - 139
EA Data - PS3 Revenue - Non-GAAP:
Q1 08 - 20
Q2 08 - 98
Q3 08 - 196
Q4 08 - 138
Q1 09 - 68
XBox - GAAP, non-GAAP = SAME
Q1 08 - 47
Q2 08 - 218
Q3 08 - 196
Q4 08 - 128
Q1 09 - 81
So you can definitely see that XBox Revenue is greater in general.
As well, those GAAP and non-GAAP numbers are fairly substantial swings - not just minor swings. So definitely something to investigate.
