PSN brings in more money than all of Nintendo

[sergiodaly]

KLAMarine said:

sergiodaly said:

i was thinking more in line with the thread and talking about only games and networks sony division. that has a operation income bigger than nintendo in q1-q3 and the latest forecast by both companies points to sony making more money than nintendo in this fiscal year (sony 135 billion yen operation income just for the G&NS and nintendo intire profit will be 90 billion yen).

I have no doubt Sony's making more money in gaming than Nintendo (especially with that paid online Nintendo's now looking to get into, ugh!) but is there a reason you're using operation income (I assume you meant operating income) for Sony and profit for Nintendo?

I'm looking up the two terms on investopedia and they seem to differ slightly:

http://www.investopedia.com/terms/p/profit.asp

http://www.investopedia.com/terms/o/operatingincome.asp

sergiodaly said:

Surely sony as a whole doesn't get profit like nintendo but it's mainly because of huge spending in R&D, a lot more assets to maintain, paying interest and past debt while nintendo has low operation income but gets money from interest because have nearly no debt and have money sitting in the bank. if we look at current operations sony is currently making more money, the past choices/mismanagement and the size of the company prevents it from keeping the money they earn.

It's not as if Nintendo hasn't been spending in R&D as well.

I was using operating income for Sony Games and Network Services division because sony doesn't provide the diluted profit for the division just operating income, and i used profit for Nintendo because they did a forecast for their total profit (which is bigger than the operating income) for this fiscal year. It was only because of available data, i wasn't trying to spin data.

 

About R&D, of course nintendo spends money on R&D, obviously, but their investment will be 575 million dollars in this full fiscal year, sony will invest 4 billion dollars in this full fiscal year. It weighs on both companies but without it they don't function, all i was doing was enumerating areas where sony could improve in the future and that are hurting them now. I even conduct a little research and found out that nintendo is spending a lot in R&D but i guess they can afford it.