When will Wii surpass 360 (if ever)?

[celine]

staticneuron said: celine said: staticneuron said: catofellow said: Sound logic at first.... but then .... I do see Sony hitting 14million tho. Kwaad you are completely useless. Using logic Kwaad might be right. Sony is the largest electronics manufactureres in the world. They are among the Worldwide Top 20 Semiconductor Sales Leaders. Added to their stature they are contracting manufacturing of the PS3 to other factories. What do the numbers say? In 2006 MS revenue was 44 billion while sony's was 68 billion. I would probably go out on the limb here to say, maybe they can achieve these numbers. Static, Do you know the difference between revenue and net income ? Revenue is "gross" income. When you deduct the various production costs to revenue you obtain "net" income. Well Sony has huge revenue but how many of this money they really "put in bank" ? Very few ... Here 2006 fiscal year ( actually early 3 fiscal quarters ) : Microsoft MSFT ( whole company not only MGS ) : $44.3 billion revenue, $12.6 billion income Sony SNY( whole company not only SCE ) : $63.9 billion revenue, $0.001 billion income Nintendo NTDOY : $4.3 billion revenue, $0.84 billion income Sony is a giant with weak legs. Sony puts money in the bank in cycles. It spends money and expects returns. The revenue paints a better picture for a company like sony because they spend billions and often make it all back plus profit (thats why sony seems to be growing). Think about it this way, Sony's "revenue" was made. It didn't fall out of the sky. With the management of electronics company in which they only did one thing maybe their "net income" would be higher. Between windows and windows based software, business solutions and thier gaming division, this is pretty much all MS does. Sony subsidiaries are comprised of not only electronics but movie, music, financial and chemical corporations. You may not realize how good this is but in the business world revenue (earned revenue) is looked favorably on. Sony's top line has been between 60 to 70 billion each year while MS has been 35 to 35. Thats why you hear stories about how Sony spend billions on R&D and billions to aquire other companies such as MGM. A giant with weak legs indeed.

Static, do you realize that if Sony has $1 trillion ( in a fiscal year ) in revenue but they spend $2 trillion to earns that revenue then they go bankrupt ? This is the same idea behind the difference between revenue of PS3's sales and Wii's sales ( hardware sales, of course I know that software sales are the most important ). PS3's revenue may be higher than Wii's but Nintendo take profit from every unit sold whereas Sony take a huge loss. Sony's gamble ( Ps3 convergence ) is very risky ( and potentially can bring a lot of money ) because is not so easy obtain huge net income ( and PS3 marketshare will be smaller than PS2's marketshare, for sure ). Do you know what is most funny about Sony ? Sony's market cap (basically, how much the company is worth) is only $44.86 billion. That means, sony makes $62.7 billion dollars a year, but is only worth $44.86 billion. Relatively little nintendo? market cap of $32.7 billion. Big monster microsoft? $291.4 billion. on revenue of $44.3 billion a year. And speak about cashflow ( money in bank ) : Do you know that little Nintendo has a bigger cashflow than Sony ? Why ? Because revenue and net income are two different things ( obviously MS has the biggest cashflow in the world ... ). A giant with weak legs, indeed