I am seeing losses being posted across the board.  Does anyone have any figure on the net profits and losses for the entire videogame industry?  If there is billions in losses being posted by everyone across the board, isn't there a sign of contraction that will happen?

Minus Nintendo and the industry has been losing money for years. EA hasn't made a yearly profit since '04 I believe and most developers show losses more often than not. Activision wisely bought the golden goose WoW but otherwise it would be struggling too.

And Modern Warfare

Hopefully that answers your question :p

There are definitely sectors of the gaming industry that are not making this much profit however.

I can tell you that PC developers are making more and more money than ever before. It is so much cheaper to develop for PC than Consoles.

Steam FTW!

Isn't there bound to be fairly wide scale contraction if this continues?  I am not going to say Crash of the Early 1980s level, where the entire industry collapsed, but maybe some major restructuring, particularly if venture capitalists stop funding things.

Sony hasn't made a profit since 2005 I think, Microsoft is so far in the hole and profits are very small. EA is losing money left and Right, several publishers have closed down recently.

Yet people are telling Nintendo they need to be more like these companies...

honestly ea must be making some really stupid business desicions or every employee is on mass salary which wouldnt be that bad for the company because 4.5 billion revenue and your still losing thats rediculous they must be paying supid amounts to sports assoications for trademark rights and stipid amounts for advertising

however these companies can lose money, for bits, as they are much bigger companies. And do not rely on videogames. But if either wanted too they could shut down their videogame division.

 

now I'm not sure, but if they buy companies, that's quite expensive and will cost them a lot of money thus lose money. Yes EA is consistantly a bad company, but it depends how their losing the money which I do not know. And want to know so if you or anyone else knows how. I want to know :D