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Munkeh111 said:
Slimebeast said:
Munkeh111 said:
Slimebeast said:
Kantor said:
Slimebeast said:
Munkeh111 said:
Well PS2 is definitely profitable from a hardware side, and now apparently the PS3 makes more profit that the PS2 sells for, and I think the PSP makes money

On a software side, SCE are definitely profitable, most of their games sell in excess of 1m copies


How can everything be profitable when overall Sony Entertainment has been posting losses for three years in a row?

You're just making things up.

The 1st party software is not profitable. Sony games have huge budgets and never sell well since the PSP/PS3 era. Also, when MS is selling away a lot of their first party you can suspect that Sony doesnt make profit on their 1st party either (but it still might be worth it overall, because 1st party games sell consoles, which in turn moves third party software). The little money Sony Entertainment makes comes from the $10 license fees from third party. 

SCE WWS has been profitable for a long time. The PS3, however, is still selling at a loss. Can you name any Sony games released recently which could feasibly have lost money?

All of them except MGS4 (and that is maybe not even published by Sony but Konami?).

Well, LBP i'd say indeed also made a profit.

Like Uncharted, which sold 2.5m on a $20m budget. Or Insomniac who manage to release a game which sell about 1.5m copies every year, with 150 people.

If SCE was losing money, do you really think that there would not have been any job cuts? Banjo did not sell enough, so Rare has had job cuts. SCE make Sony money, so they are not going to drop support of it

Im confused. Isnt it a well established fact that SCE has been losing 100's of millions of Dollars during the last three years?

Uncharted probably made a small profit, and yes, Insomniac are probably also profitabel. But u have to weight those two against all the other first party titles that are losin money. What abot Motorstorms? And so far KZ2 lost money. Hevenly Sword, Lair lost money.

Sorry, SCEWWS. So Motorstorm 1 sold 3.48m, but yeah it was bundled, but that is certainly plenty. Pacific Rift is very likely undertracked, it sold 1m according to the developer: http://www.gamesindustry.biz/articles/motorstorm-pacific-rift-passes-one-million-sales.

Heavenly Sword sold about 1.4m, made by a team with only about 25 employees, in 3 years, so that would have had a reasonably small budget.

Yes, Lair was a flop

 

Motorstorm was bundled. Real retail copies was probably just 1 million. And I think Sony games are sold at retail for $50 instead of $60.
So only 1 million copies x $20 = $20 million. And being a early in generation game they made probably lots of newbie mistakes and thus the game got more expensive development. So Motorstorm profit estimate:
revenue $20 million
costs (budget $20 mill + marketing $15 million) $35 million
----------------------------
Motorstorm losses = $ 15 million

Pacifik Rift I dunno if it was bundled, but it was uge flop so I estimate it only shipped 750,000 copies to retail. Althoug it was also cheaper and marketed less:
revenue: (750,000 x $20) $15 mill
costs (budget $15 mill + marketing $10 million) $25 million
---------
Motorstorm 2 losses = $10 mill

Heavenly Sword I think was bundled somewhat, plus it was sold for rebate and bargain bin mostly. So per copy revenue was probably just $15 on 1 million copies (the rest, 400,000 I estimate were bundled) and thus total revenue only $15 mill.

It's well documented that HW cost $20 million (discussed on VGC). Add marketing and you got $30 mill.

Heavenly Sword losses = $15 million

Lair was even worse. Also rumured to have cost $20 mill. Same marketing, but worse sales.

Lair estimated losses = $20 million.



Then SOCOM and Warhawk probably lost a lot of money.