| Gamerace said: Well that makes more sense now. I suspect the PS3 sold more games than the Wii (for EA) but greater development cost, licensing fees, blu-ray costs really impacts developer revenue on PS3 sales, therefore even with lower sales, Wii generates much more revenue. |
Revenue is the gross amount of money you pull in.
If you sell 8 widgets for 100 dollars, which cost your 80 dollars to make You've brouht in 100 dollars worth of revnue. Revenue is just the total amount of money brought it. Costs don't get taken out of revenue.
Licensing fee's if on a per game basis, i can see being not considered in revenue because that money extra could be going straight to Sony. Blu-ray discs and development costs should have no effect on revenue as you don't take operating costs out of revenue.
What you're talking about is "net income".
This would mean, after everything was made. EA brought in 17 million from stores who bought PS3 products. Not counting expenses. If those expenses were greater then 17 million via things like development and discs, the PS3 sector likely caused them a loss.
Likely it hasn't though, as on the needed reprots they'll shift most of Maddens development costs onto the 360 version which will make a profit anyway to make the investors more at ease.
