PS3 Generates 40% of Software Sales in the Middle East

[Immortal]

postofficebuddy said:

Immortal said:

I can't see why Sony wastes its time like this. Overall, the profit margin must be very small in developing markets like these. Whenever they become worth distributing to, if Nintendo or any other competitor has a more appealing product than Sony (as is the case with the Wii and the PS3), it will just rush in and take over the markets. What's invested here could more profitably be invested in the developed countries where the video game market hasn't achieved its full potential.

PS2 has sold over 5 million in the Middle East and another 5 million in Brazil. You think that's not worth-wile? Nintendo simply doesn't have the infrastructure necessary to expand into those markets. Why do you think the DS has sold such a small amount in comparison despite beating the PS2 in the rest of the world?

User base wise, of course. That's enormous. But what about the software sold? And the profits? Honestly, selling to developing markets requires you to reduce the profit made on each unit severely. That 10 million probably doesn't amount to as much in profit as 1 million consoles sold would in the US, for example. And by the way, I realize that Nintendo doesn't have the infrastructure to expand there. That's what I meant by "worth distributing to". 5 million Wiis sold in Brazil wouldn't bring enough profit to break even on the cost of distributing them over such a large territory. With Sony, I'm guessing that the established distribution system for its other products is used for the PSs and it just adds on to the overall profit.