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Forums - Gaming - Which Company Will Be The Next To Leave The Gaming Industry...

 

Which Console Developing Company Will Be The Next To Leave The Gaming Industry.

Nintendo 63 11.80%
 
Microsoft Studios 129 24.16%
 
Sony Computer Entertainment 341 63.86%
 
Total:533
Metrium said:
What id like to know is how profitable Sony's gaming division rly is? I keep seeing comments that Sony would never drop theyr gaming division cause it is one of theyr most profitable division... I am not denying that but id like to know if anyone has numbers.

Im asking this because we know that Sony as a whole is losing billions but I dont think they released numbers for each of theyr divisions.

-PS3 was sold at a loss for a while, they loss alot of money because of this.
-Vita is being sold at a loss.
-Most of theyr first party exclusives are not selling so well. And since Sony are the ones developing it it cost them money and idk how many games they need to make a profit but I wouldnt be surprised if some of their games ended up being a loss of money for sony.
-PSN is free for users so idk how much $ it is milking every year to keep it running, im guessing probably alot.
-Add to this all the R&D for all that is hardware/software.

My guess would be that Sony's gaming division is no where near as profitable as most ppl would think... But this is just my guess so id rly appreciate if someone who has more knowledge on this could answer me.

It's not that it is so profitable.  It's that even as a third placed console that has made thousands of mistakes  this generation it's still a better division for them then say Cell phones or numerous other areas.  That's the point.  When Sony doesn't even have to work all that hard to make video games a solid division, what would make them drop it?



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Quoted the wrong person... Nothing to see in this box.

In addition to that; when they rearranged their divisions, soon after the current COO took over, they merged the gaming division with one of the divisions that was loosing the most money. (Most companys would cut that division.)

 

In a nut shell Sony is suffering from the same mistakes that nearly killed off General Motors in the US. (Accually if it wasn't for the US government it would of) Too many divisions loosing money, too many products that were essentially the same, and the company being too worried about its perception in the market not to cut the divisions that are killing them.

If you want examplet of a  company that did the opposite of the first that comes to mind would be Ford. They cut three of their division not making as much money (Jaguar, Volvo, Astin Mertin), sold most of the managment perks (The CEO changed his salery to $1, he still made a lot of money from his stocks etc) And when the government was handing out money to bail out the US car market Ford was the only one who didn't take a dime because they were profitable.

 

 

EDIT: I really souldn't post when I'm this tired.