g911turbo said:
If sony sold a PS3 for 600 dollars, they earned 600 dollars in revenue. Now if the system cost them 900 to make, that would be their expenses. Leaving them with a net LOSS of 300. Assume the cost of the system was 500, that would leave them with a net PROFIT of 100. Either way, revenue = 600.
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That being said, I fully agree with you that the OP titles section 2 as "profit", yet almost exclusively talks about revenue. From what I understand (never actually scrutinized the numbers myself) Nintendo won the profit crown by a landslide early on. What might make it closer, however, is how much money Microsoft brings in from Xbox live (which believe me is an absurd amount). Sony did not do too well last generation in terms of profit early on and mid cycle. Now they are doing much better, just in time for PS4. Hence the announcement by Sony they don't plan to lose [as much] on console sales this time around. They can't afford to just in case the console takes too long to ramp up again, like ps3 did. |
You are correct, I meant profit and typed revenue.









