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Forums - Gaming Discussion - So Nintendo Q2 profits > Sony gaming division Q2 profits

 

Which company will have better results come fiscal year end in 2015?

Sony 88 20.00%
 
Microsoft 82 18.64%
 
Nintendo 225 51.14%
 
Ouya 45 10.23%
 
Total:440
S.T.A.G.E. said:
Good for Nintendo seeing that they went cheap as always with their hardware but also good for Sony seeing as they took more risk on more powerful hardware and and are reaping the benefits.Also seeing that they are a year behind Nintendo it doesnt bother me at all.


People are forgetting on thing. The main reason behind PS4 sucess because it didnt screwed up like others. It remained as a machine to play games. And PS3's goodwill (lots of exclusives) and overall Playstation support since PS1 era attracted new adopters. Power is not the main selling point of PS4.



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Yeah that's interesting. Ive always thought Nintendo runs their business better than Sony and MS run PS and Xbox.

Maybe Nintendo benefits from not having to pay for things like exclusive advertising and DLC. 



    

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Nintendo always do well when it comes to profiting in the gaming business. PlayStation is quite the opposite. There doing ok now since they have the marketing over the WiiU and XB1 however I cant see that lasting long. Not with Nintendo and MS releasing some pretty big guns in 2015 just like Sony. I feel MS and Nintendo will win in the exclusive wars (which will lead to better software and hardware sales). Sony seems to be falling fast with the quality of there games and consistency of there online service. They already released 4 of there big guns and none of them were anything special. Where as Nintendo have Super Smash Bros in 2014 and MS have Halo MCC in 2014 ready to turn the tides on the console market while Sony really has nothing to compete at the moment. The hype train will disappear once those colossus's release and console imagines will change.



RavenXtra said:
Tachikoma said:
Nintendo's arcade hardware is also factored in fyi.

Should that not be counted or something? It's still video game hardware.

It's just a disclaimer, because there's a lot more to Nintendo's numbers than 3DS and Wii U.



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It's because of the 3DS. It's been much longer on the market, and therefore software royalties are much higher because of higher weekly software sales. That leads to more profits. Etc.



Thing is, both companies use different models.
Nintendo makes money off console and software.
They'll make good money off the consoles, and really good money off their upcoming software releases.

Sony on the other hand have a razorblade model. They lose money on the console and hope to make it back with sofware. The Sony software lineup isn't stellar, but there are some good looking AAA games coming out. I don't see them performing really well though. Maybe 5m max for new uncharted, 3m for bloodborne.

I think it's possible for nintendo to edge them out, but it really depends if Sony can bring the software.



Ka-pi96 said:
Giggs_11 said:

Sure, but it wont come down to just quantity of units sold. Q2 PS4 outsold WiiU 5.5 to 1 if I'm not mistaken, yet Nintendo was able to edge out Sony financially. Now imagine Nintendo had sold just as many WiiU has Sony did PS4s (and the same thing goes for software), how would the financial go?

Nintendo and Sony have completly different approaches to the gaming business. All that marketing, exclusive deals with developers, bundles, etc, cost a lot of money, I mean a lot. Yet Sony can compensate that with lots and lots of units sold. In fact, they need lots ands lots of units sold to turn profit. Nintendo relies on in-house developed software and hardware, with less fewer moneyhatting, marketing (except for their on products) and doesn't need that many  sales to turn profit.

 

I think it will be an interesting battleto see.

Except you seem to be forgetting that the 3DS exists...

Excep 3DS isn't selling like in previous years. The reason on why Nintendo made this considerable amount of profit lies in the changes they made in their business model this quarter.



My bet with The_Liquid_Laser: I think the Switch won't surpass the PS2 as the best selling system of all time. If it does, I'll play a game of a list that The_Liquid_Laser will provide, I will have to play it for 50 hours or complete it, whatever comes first. 

Giggs_11 said:
S.T.A.G.E. said:
Giggs_11 said:
S.T.A.G.E. said:
Good for Nintendo seeing that they went cheap as always with their hardware but also good for Sony seeing as they took more risk on more powerful hardware and and are reaping the benefits.Also seeing that they are a year behind Nintendo it doesnt bother me at all.


Geez, what a bitter comment... :D Still, a few things not correct in it:

1) Cheap as always it's not entirely correct, I believe apart from Wii, previous consoles Nintendo always had the more expensive hardware, or at least toe-to-toe with the others (Nes, SNES, N64, Gamecube). With WiiU comes weaker hardware buit in the console but an expensive gamepad and a more expensive console structure than X1 and PS4. Don't think, all accounted for, WiiU is that more cheaper than PS4 and X1.

2) Sony didn't took more risk, building a machine which is only stronger than the previous one is the easy way to go. Kinect, motion controls (Wii), gamepad, those are examples of taking risks.

3) Being a year behind doesn't matter to the discussion at all. We're talking about quarter sales (3-month time frame) not ltd sales. Actually, generally being younger is even better cuz it's fresh, the new thing, and it gets people attention.

Think man...think. Do you really think Nintendo's console would've profited as console at the rate they are going if it was as powerful as the PS4? It would've taken them much longer. The Wii U is borderline last gen tech. Its profitable and Nintendo reaped the benefits by staying true to their normal policies of making profits off of cheaper hardware. There is no bitterness in this. I've just learned to accept Nintendo as they are. I used to defend them from people I saw as haters, but once I educated myself I realized more often than not what they get is definitely what they deserve for better or for worse.

1) No. The Wii U was borderline last gen tech...they haven't been on the forefront of power since the 90's.

2) Of course Sony takes more risk with hardware with Nintendo, which is why they tend to take more losses Nintendo and its been this way since the beginning. I am talking about costliness of the product and parts involved. Nintendo is a wiz when creating the cheapest console possible to produce. This is how they survived the Gamecube generation. Its all about profitability. Despite having better graphics than the PS2 the PS2 had the Disc format that was sellings slowly at the time and Sony provided it and lowered its market price making it affordable for all. Microsoft followed suit soon after and the same goes for Blu Ray. Sony is the game changer when it comes to formats. There are a lot of companies that depend on their control over formats in the gaming industry especially since they spearhead it most of the time anyway.

3) Being a year behind does matter, because Sony had to make a profit off of the hardware and break even on the R&D before they can pull in more profit.

So again...Nintendo isn't doomed because Nintendo always plays it smart when it comes to developing a console they can quickly profit off of.

1) Gamecube was the most powerful console of its generation and was launced in this century so your 90s argument is debunked. Anyway being cheap is different from being powerful.  You said (quote "cheap as always"), you weren't talking about powerfulness, but price. And for that matter, Nintendo, aside from Wii which was pretty cheap to make, all other Nintendo consoles go toe-to-toe with their competitios, and that is a fact. Even Wii U costs a lot with its "weak" hardware inside, it has a controller expensive as hell. For reference wasn't WiiU sold at like 300 or 350$ at a cost when it 1st came out? And PS4 at 400$ with a profit? Well, that narrows the margin a little bit.

2) Well that's not taking risks. That's simple bad management/planning. So PS4 comes with outdated hardware for its time, is sold at a loss, and relies only on better graphics over its predecessor. Nintendo comes with even weaker hardware, sells at a cost, introduces a gamepad, which is new o gaming consoles, and you argue Sony takes the higher risk? Okeeeyyy...

Btw, Sony takes more losses because, like it has already been said in this thread, Sony's startegy relies on lots and lots of expending money outside of games and console development, like marketing, buying exclusive deals, most out of the money they make on games goes to 3rd parties, etc... Nintendo approach is completely different, reling heavily on their develoment teams and they sell mainly their own games. Sony's startegy needs tons of sales too be profitabe for the company, Nintendo's not so much.

3) I wont even try to explain to you why this is so wrong when talking about quarterly results...

^^^^^^^^^^^^This right here is fact ...I've been trying to explain this for the longest .....first party software ...all profits no middle man ...I always tell people software is whe the money is at hardware sales matter but nowhere near software sells 



Azzanation said:

Nintendo always do well when it comes to profiting in the gaming business. PlayStation is quite the opposite. There doing ok now since they have the marketing over the WiiU and XB1 however I cant see that lasting long. Not with Nintendo and MS releasing some pretty big guns in 2015 just like Sony. I feel MS and Nintendo will win in the exclusive wars (which will lead to better software and hardware sales). Sony seems to be falling fast with the quality of there games and consistency of there online service. They already released 4 of there big guns and none of them were anything special. Where as Nintendo have Super Smash Bros in 2014 and MS have Halo MCC in 2014 ready to turn the tides on the console market while Sony really has nothing to compete at the moment. The hype train will disappear once those colossus's release and console imagines will change.


What? Sony has released four of their big guns? Since when? They've released ZERO of their big guns, and anyone saying that they've released FOUR is just plain wrong.