facher83 said:
jlrx said:
You are looking at simple numbers, instead you need to be looking at the health of these companies. EA for example has had shrinking profits quarter after quarter. It costs more for them to make the games, they get less returns on their investment.
Further, 400 dollars is not entering mass market appeal. How quick do you think the system will see $250 dollars? They are already bleeding money as is, do you think they can sustain even more loss?
Im not sure if it's against the rules to mention other sites, but check out here
http://forum.pcvsconsole.com/viewthread.php?tid=11760
There is a good example of the profits of Sony/MS/Nintendo. What is most disturbing for Sony is that their games department loss so much money it shrunk their profits overall considerably. EA also suffered losses.
Many companies are seeing declining profits, or suffering losses, they bet on the wrong systems, invested their assets incorrectly and are paying for it.
Keeping those things in mind, you have to realise that what is a multiplatform PS3/360 game can very likely become a multiplatform PS3/360/Wii game. It's all about money, no matter how many millions of this or that they sell. |
Video Game industry productions are highly based on investment companies or previous profits - if a company fails to produce good profits on their 'latest' game then their cash flow for their next game is considerably lower, and offers less money to pay people to work on it. I also don't find that thread very helpful, as it shows overall statistics, but not gaming-specific. |
I dont know how you could say it shows overall statistics
Games: ($841) loss (sony)
Entertainment and Devices: $165 (MS games, first profit ever on 360 I believe, timed with halo 3)
Profit: ¥52,170 ($452) (nintendo, only games obviously)
Loss: $195 (EA, games only)
all numbers in the millions, ie $195 loss is a loss of $195,000,000 dollars
all that info is there, but for companies like Sony and MS it also includes their other departments (which were profitable) and we can note overall that Sony's games division loss so much money it decreased the companies overall profits to >>Profit: $641 (sony)<<
