| Kyros said: Did I miss something that was special about revenue? Profit may be the important number for the short-term. But revenue has a couple of advantages: 1) You can measure it easily and compare it. Profit is a very complicated number, depends on taxes, loan repayments, legal tricks to avoid taxes etc. Profit of big companies can be more or less meaningless in many cases and it oscillates bigtime. 2) In many cases revenue is the important number because it gives you an idea about the size of the firm in a marketplace. If a company makes 100billion in revenue and looses 100000$ it still will be worth much more than a company making one million, who makes 100000$. Why? The big company could reduce costs for the next year for example by 1% of revenue and it would make 1 billion profit. The small company would need to get 1000 times bigger to just have as much revenue. So revenue=size of a company, potential for future profit And because of that its at least as important as profit. |
Again I agree with a lot of this, but do you think this is of value to gaming nerds like us talking about possible releases and 3rd party support? It seems like it is far more useful to the folks who actually make decisions for the company.
Ultimately a game that makes large profit will likely see a sequel and a team that releases games to high profits will likely get a green-light on more projects. Where as a game that just breaks even will probably languish in the anals of gaming history as a "one of", and similarly a dev team known for making games that just break even ...well they likely all get fired or broken up.
I get that a company with larger revenue has more potential for profit...but its the actual profit that matters still..not the potential profit. Potential profit is about as useful as wishful thinking ultimately.
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| To Each Man, Responsibility |
