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Forums - Sales Discussion - Sony's Financial Results for Oct-Dec 2010

Darth Tigris on 03 February 2011
Baalzamon said:
Darth Tigris said:

Just saw a good point on the neoGAF thread:  How much of that $564 million in operating income can be attributed to just ONE game?

GT5.  Almost 5 million copies at around $60 a pop?  That's almost $300 million in sales.  MS gets the same during Halo quarters (which this was not for MS, btw).

Say what you will, but GT5 saved the NPS from having a modest profit to a surprisingly good one.

I seriously hope that you aren't equating $300 million in sales to $300 million in profits, are you?  Sony does not profit $60 per game of GT5 sold.  Even if they were selling the game to stores for as high as $50, which I really do doubt, not all of that money is pure profit.  There are expenses involved including production costs, shipping costs, advertising costs.  As for development costs, I'm not quite sure how a company has to realize expenses for an item that isn't yet released, but a majority of these costs were likely in a different quarter.  You also have costs for maintaining the game, such as updates, and online servers must have at least some sort of cost associated with them.

Depending on how exactly the development costs have to be realized, lets just assume they are making $20 per copy of the game sold.  That would be $100 million in operating income this quarter for that game.  $464 million would have still looked very good for the gaming division for Sony.

Actually no, I didn't mean $300 million in profits or operating income.  That's why I didn't say that.  But in the VGC analysis, Sony stated the following (underline mine):

Sony's Networked Products & Services division, which includes Playstation products and Viao computers among other devices, saw revenues fall to 566.6b Yen ($6.995b) from 605.5b Yen in the previous December quarter. Sony says declining game business revenue led to the decline in revenue for the division, partly on the Yen. However, the operating income of the division increased to 45.7b Yen ($564m) from 26.3b Yen in the previous December quarter due to PS3 hardware cost reductions and stronger PS3 software sales.

Oh, and as a 360-only owner trying to give GT5 a complement on THIS site, you sure taught me better ...



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psrock on 03 February 2011
Darth Tigris said:

Just saw a good point on the neoGAF thread:  How much of that $564 million in operating income can be attributed to just ONE game?

GT5.  Almost 5 million copies at around $60 a pop?  That's almost $300 million in sales.  MS gets the same during Halo quarters (which this was not for MS, btw).

Say what you will, but GT5 saved the NPS from having a modest profit to a surprisingly good one.


Slim problem with his point, Sony does not make $60 for each game, if they make half, that's great. 



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11/20/09 04:25 makingmusic476 Warning Other (Your avatar is borderline NSFW. Please keep it for as long as possible.)
bannedagain on 03 February 2011
D-Joe said:
DarkintheLight said:
D-Joe said:
DarkintheLight said:
D-Joe said:
DarkintheLight said:
bannedagain said:
DarkintheLight said:
bannedagain said:
DarkintheLight said:
Shipment numbers are accurate, meaning if VG chartz was accurate they would be consistent with Sony's (and MSes and Nintendo's) shipment numbers, trying to be accurate in every single region is just stupid if you don't have accurate sources in the region, more accurate to make an overall estimate 


There are a lot more ps3's on the shelfs then xbox's. So that means there where more xbox's sold because they where out of stock everywhere. I had to drive to hours to get a xbox before christmas. all the while ps3's where all over the place.

SO THE NUMBERS ARE RIGHT.

 PS3'S ON SHELF = NOT SOLD.

XBOX 360 OFF THE SHELFS AND NO WHERE TO BE FOUND = SOLD

GET IT.

You obviously don't understand the meaning of the word consistent 

Yes you are right. they are not very consistant and I did miss that I Guess. Was making a point  to people that the sales are  not off as of now. They are now most likely right on, after a bunch of adjustments. 

They aren't accurate though 360s are way too high and ps3s are about right, it's hard to tell if they do have 2 million on shelves it's too high but I doubt they have that much on the shelves 

well PS3 is 1.55m on shelves(between VGC and Sony shipment)

Like I said if it's 2 million on the self VG charts numbers for ps3 are too high, or it could be right on, or they could be a little low, can go either way for ps3, but 360 numbers are too high, either way you can't use vg numbers to determine the number on selves if you are trying to see if VG chartz is consistent, but it seems close enough for ps3 

when i said that?

was using it in the general it's mathematically impossible sense 

i just post the data

Every xbox that hits the shelf is selling right off the shelf. So how is the number for xbox to high. It's going to be very close, due to the number of xbox selling right away and not sitting on the shelf.



EncodedNybble on 03 February 2011

lol @hyperbole of "every 360 is flying off the shelf".

I know it's an exaggeration and all but,

1) US != the world

2)  Anecdotal evidence does not equate to general use.  In my area there are equal numbers of all consoles.  Now, I'm not using this anecdotal evidence of 2 areas (San Francisco Austin) to say that the 360 isn't selling through at a higher rate in other areas.

Sure the 360, in America, is selling through at a higher rate than the PS3, not many people will argue that, but saying that every single 360 in the world is flying off the shelf is a little....extreme.



Kynes on 03 February 2011
EncodedNybble said:

lol @hyperbole of "every 360 is flying off the shelf".

I know it's an exaggeration and all but,

1) US != the world

2)  Anecdotal evidence does not equate to general use.  In my area there are equal numbers of all consoles.  Now, I'm not using this anecdotal evidence of 2 areas (San Francisco Austin) to say that the 360 isn't selling through at a higher rate in other areas.

Sure the 360, in America, is selling through at a higher rate than the PS3, not many people will argue that, but saying that every single 360 in the world is flying off the shelf is a little....extreme.


Just a note, because a lot of people say US UK != the world... If we look at the XBox360 install base, US UK means ~70% of the total, so it's normal that MS would send ~70% of the consoles there. If UK US are understocked, you would have a very low number of consoles at the channel.



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DarkintheLight on 03 February 2011
bannedagain said:
Every xbox that hits the shelf is selling right off the shelf. So how is the number for xbox to high. It's going to be very close, due to the number of xbox selling right away and not sitting on the shelf.

I guess because I don't believe that every 360 in the world is selling right off the shelf, NA maybe but not the whole world, the number is too high 



Kynes on 03 February 2011
DarkintheLight said:
bannedagain said:
Every xbox that hits the shelf is selling right off the shelf. So how is the number for xbox to high. It's going to be very close, due to the number of xbox selling right away and not sitting on the shelf.

I guess because I don't believe that every 360 in the world is selling right off the shelf, NA maybe but not the whole world, the number is too high 


NA plus UK is 70% of the world for X360. The numbers are not that off as people want to think.



psrock on 03 February 2011
Kynes said:
DarkintheLight said:
bannedagain said:
Every xbox that hits the shelf is selling right off the shelf. So how is the number for xbox to high. It's going to be very close, due to the number of xbox selling right away and not sitting on the shelf.

I guess because I don't believe that every 360 in the world is selling right off the shelf, NA maybe but not the whole world, the number is too high 


NA plus UK is 70% of the world for X360. The numbers are not that off as people want to think.

It's way off, the adjustment havent been made yet. Even if there was no system left in the US, there is no way 300k Xbox 360 was left on the shelf in Europe, Asia, North America minus US, no  possible way. 



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11/20/09 04:25 makingmusic476 Warning Other (Your avatar is borderline NSFW. Please keep it for as long as possible.)
DarkintheLight on 03 February 2011
Kynes said:
DarkintheLight said:
bannedagain said:
Every xbox that hits the shelf is selling right off the shelf. So how is the number for xbox to high. It's going to be very close, due to the number of xbox selling right away and not sitting on the shelf.

I guess because I don't believe that every 360 in the world is selling right off the shelf, NA maybe but not the whole world, the number is too high 


NA plus UK is 70% of the world for X360. The numbers are not that off as people want to think.

Dude they are high just admit it, they aren't ridiculasly high but they are off by a couple 100k 



Kynes on 03 February 2011
DarkintheLight said:
Kynes said:
DarkintheLight said:
bannedagain said:
Every xbox that hits the shelf is selling right off the shelf. So how is the number for xbox to high. It's going to be very close, due to the number of xbox selling right away and not sitting on the shelf.

I guess because I don't believe that every 360 in the world is selling right off the shelf, NA maybe but not the whole world, the number is too high 


NA plus UK is 70% of the world for X360. The numbers are not that off as people want to think.

Dude they are high just admit it, they aren't ridiculasly high but they are off by a couple 100k 


I've said not that off, I'm sure that there should have been about 500k-550k units at the channel, but not much more than that. A difference of 200k should not make people as "angry" as some people are.