PS4's total software sales surpass those of Wii U

[Dallinor]

QuintonMcLeod said:

Dallinor said:

First party sure, the link you provided shows that. However third parties pay massive amounts in royalties.

2008.

http://www.gamesindustry.biz/articles/activision-we-might-have-to-stop-supporting-sony

"According to the report, Activision paid USD 500 million in royalties to Sony last year."

That's some serious money from software.

But Sony still reported a loss of over 1 billion dollars that year:
http://www.vg247.com/2009/10/30/sony-ps-division-has-lost-4-7-billion-since-launching-ps3/

And this from all from the Playstation division no less.

Sure, selling overengineered hardware using the razor blade model will do that.

But we're talking about software, and third parties give truckloads of cash to console manufacturers in royalties. If the hardware isn't crippling the company, software from third parties alone can bring in some huge profits.