Hardstuck-Platinum said:
As I said in my first post here, profit margins can be affected by many things. Research and development costs for example. I'm not saying that profits aren't important, but revenue is what makes profit possible in the first place. You have to remember that the PS4 is still generating a lot of revenue/profit for Sony in conjunction with the PS5. You can't look at it solely as a console vs console basis |
I understand your first point, marketing is another big one. Companies fold all the time though while making revenue. Revenues and a healthy business produce a consistent profit ergo why profit is typically considered more important than revenues. The PS4 generating profit alongside the PS5 doesn't negate the fact they were / are selling consoles at a loss and the take on 3rd party software is lower than first party software. Looking at Nintendo they are not and normally don't take a loss on hardware AND the percentage of software sales for first party titles is higher. They are making more money than Sony's game division.
If you don't want to look at the CURRENT market leader then, (if the chart I posted is accurate) add up the profit from all the Sony consoles and add up the profit from all of the Nintendo consoles and tell me who is the market leader, then you won't be looking at console vs console. That would be akin to an all time market leader.
Not trying to take anything away from Sony I have bought all their consoles except the VR and PS5 Pro but when it comes to running a Video Game business it is pretty easy to argue that Nintendo has been doing it longer and knows how to profit from it better than Sony. With that and all the other market leader criteria Nintendo is able to check I would consider them the current market leader. If we go by revenue and revenue only then sure Sony wears that hat.
@konnichiwa Valve is killing it and I will take your word for it that in the metric of Profit Per Employee they are the king of the Video Game business but if you look at the chart I posted earlier the big three are profiting in the billions and would probably think 19 million is cute. Wait a tick where did you come up with 19 million? A quick search said they brought in 5 billion in 2023 at 40 points which would put their profit for that year alone at 2 billion. 400 employees would only be 5 mil profit per employee not 19. That is still stellar. Sorry I guess I didn't take you at your word but 19 million total profit just seemed way too low and I looked anyway.
