| Kakadu18 said: Just so you know, profit is all that counts. You can make more revenue than the entire planet but make less profit than the pizza place on the corner. |
Not at all. Marketshare is defined by revenue. Profit is simply the margin of your business. It matters for a different aspect: viability of a business model in the long term and shareholder cash flow.
If you want to know how much of a market a company is taking, you look at revenue.
Playstation doesn't have to worry about either, their margins are fine and so profit will continue to grow as their revenue eclipses all other gaming companies. Only Tencent can match or beat Playstation at this point but they're in an a different segment and getting regulated by China.
| Bofferbrauer2 said: Most of those 5 years (2014-2017) the PS4 had next to no competition. It's easy to be the best-selling console if the competition fizzles out. Also, that's worldwide, while this thread is all about Japan. Here, the PS4 lead for 4 years if you generously count out the 3DS, while the Switch is in it's 5th year of total dominance there, and it doesn't look like that's going to change anytime soon. @bolded: Revenue? What good is high revenue when you still make losses (hello PS3!)? Profit is all that counts in that regard. Also, leading since 2013? You really sure Playstation lead last year when sales of the PS4 were hemorrhaging quickly and the PS5 only started at the very end of it while the Switch got almost 30M sales, not even counting their other hardware revenues like the 3DS? |
More like PS4 dominated the competition. The competition had their shot, it just couldn't compare to the PS4 in many ways.
Revenue is marketshare. Plenty of companies, backed by billions from investors, lose money for years, due to their growing revenue and dominance in their industry. I'm sure you have heard of Amazon, Netflix, Spotify, Tesla, Airbnb, Uber etc
These are called growth stocks.
PS 2020 : $25.04B
Nin 2020 : $16.1B
Nintendo's revenue is heavily tied to their hardware sales, hence as SW hardware declines, their revenue declines. They're expecting a 9% decrease last I heard. Unlike Playstation who's main driver is software sales and PSN monetization, which has led to higher revenues every year despite PS4's decline.
PS 2021 FY est from SNY : $27.1B
Nin 2021 FY est from NIN : $14.6B
