bbsin said:
famousringo said:
bbsin said:
shams said:
I think Sony will lose around 100m for Q4 (Jan-March '08) - much lower PSP/PS2 sales, to less offset losses from PS3 hardware sales.
So fiscal '07-08 will end up around 1bn loss - first time has ever made losses two years running in their games division.
Both previous losses were relatively minor as well - totaling under 500m loss. The last two years will add almost 3bn in loss to the equation.
...
Sony/MS would *love* to emulate Nintendo's business model - but they can't. Nintendo makes money off SOFTWARE - Sony/MS make most off hardware (and licensing).
Neither of Sony/MS have the IPs to compete with Ninty - apart from a couple of big IPs (Halo, GT5, Everybodys golf?) - they just don't have the ammo. Only EA, Activision & Square Enix can get close. |
Wrong way around. Nintendo makes most their money off of hardware, that's why they've never had a negative operating income. They (nintendo) gets roughly a $49 profit for every Wii they've sold and even more for DS. MS and Sony makes money based on the percentage of royalties and licensing generated from software companies and sales. Sony can emulate Nintedo's business model, but don't want to. They could have easily created a PS2.5 for $200 and sold MORE than the Wii at this point. As for Microsoft, their name in the videogame industry wasn't good enough after the Xbox so they had to push the technology and make a better reputation for themselves. |
Been paying attention to the weekly sales? Notice how Nintendo has been publishing more units of software than any other publisher for months now? There's a reason why some third party software publishers like to whine about how Nintendo consoles are only good for Nintendo. And when a $50 game is sold and you get the licensing cut, the publisher's cut, and the developer's cut, that's a heckuva lotta dough. It's obviously great for Nintendo that they make profit off their hardware sales, too, but they make way more cash off the copy of Metroid, SMG, Mario Party and Wii Play that a dude buys with his Wii than they do off the Wii itself. |
Been paying attention to Nintendo's financial reports? Notice how in Nintendo's 2007 & Q2 2008 fiscal years they made 30-40 percent more profit selling hardware compared to software? ofcourse not, b/c if you did read their reports, you wouldn't be acting like you actually knew where Nintendo makes most their money now would you? Think about it, Nintendo made somewhere around $45 profit for every Wii they've sold at launch. The manufacturing and production probably have droped even futher since then. It can take millions to develop games, market EACH one, and then manufacture them. How much of that 49.99 is still left? Do you really think it's more than the 50-70 dollars made from everyone of those 20,000,000 Wiis and 66,000,000 DS sold? No one is saying that Nintendo software ISN'T making money, but it's the hardware that makes more money especially after Nintendo has stoped making Wii commercials. Not to mention that you have to add accessories such as controllers to the hardware mix aswell. They will eventually profit more from software late in the hardware's life cycle, but both the DS and Wii are obviously still going strong, and by the time that happens, all the NintendyFanboys and Soccer moms in the world would already be waiting in line for the DS2 or Wii2. http://www.nintendo.com/corp/report/FY07FinancialResults.pdf page 20. http://www.nintendo.com/corp/report/2QFY2008.pdf page 21. |
