milkyjoe said:
I disagree, outside of things like charities or other non-profit organisations (funnily enough, gaming companies would never fall into this bracket) there isn't a company in existence that doesn't want to make a profit, be it from day 1 or somewhere further down the line. Companies who make a loss at some stage aren't doing it out of some sense of love for their customers as has been suggested here, they're doing it to try and gain market share which they can then try to exploit to turn those losses to profit, which is exactly what Microsoft did with the first Xbox. Lesser companies with less backing wouldn't have been able to follow that model though, which brings me back to Sega and the like... |
You don't have to agree. Generated revenue is more directly paired with expansion and growth. While the following example has no bearing on Nintendo (which has displayed huge gains in revenue in addtion to profits since the mid 2000s), a company that produces say 10% profits over an annual revenue of $100 million over $50m the previous year, is still generating less cashflow than a company that is breaking even or even posting slight losses YoY on revenue of $200 million up from $150 m the previous year.
