| JohnVG said: Yeah, that graphic bar shows the problem. The revenue vs. profit in Playstation is well known from many years (it is), and is just awful. Awful. So much money gets lost for the company (yes, a 7% against 12% or even 10% margin seems "not that important", but it really is and shows an internal serious manegement problem in SIE nobady seems to solve anymore). The Nintendo situation, btw, is extremely impressive. Would be an insult for Sony... but to be fair, it can't be defined as "the normal situation" to be compared. It isn't. Is just an extraordinaire job. |
Sony has already drastically improved their profit margins. Looking at it year over year, SIE's operating income for the last quarter was 13% compared to the 7% it was the year prior. Its only going to get better with Bungie no longer eating into their margins and hardware profitability improving. Not to mention the PS+ price hike won't impact financials until their next fiscal year. PS5 won't truly peak profit wise until 2027 - 2028.
Also, isn't that Nintendo figure for the whole company, which would include stuff like movies or Pokemon trading cards? Not really a fair comparison in that case. Something like The Last of Us adaptation would be accounted for in Sony Pictures rather than Sony Interactive for example. Am I wrong in this regard? The graph is also using accountability margin for Xbox. Does Microsoft even use that metric for their financial reports?
Edit: Went to the original source for that graph (TweakTown). It goes on to cite Phil Spencer's testimony that "Xbox business today runs at a single digit profit margin."
Last edited by PotentHerbs - on 18 December 2024
