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Forums - Gaming Discussion - what has this generation taught us so far?

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" b/c of this you were"stupid" in saying revenue is more important then profit which is more important to your share holders the money you could have made (revenue) or the money you did make (profit/net income) "

Excuse me, but my list was quite sarcastic in nature. Revenue is not more important than profit. Profit is like "I have $400" and Revenue is like "I held $2000 in my hand today before I paid my bills."

Profit IS more important to shareholders. They don't wanna know how much money a company held in it's hand, they wanna know how much they get in dividends out of PROFITS. This generation just seems ass backwards, Microsoft claiming revenue like its somehow more important than profit which they could equally claim to be the leader in and would be better for them to do so. Since they don't, they try to hoodwink the reader by talking about revenue, and carefully not mention profit, mainly because they probably don't lead in profit.

And my statement still rings true, Profit does include revenue. The formula for Profit is Revenue - Expense = $0.00



Don't fight over a system and get injured (or even killed) for nothing (PS3 riots etc)



The person who said revenue is more important than profit is a moron. If you have done any accounting introductory unit or from common sense: maximising profit is the most important thing in business. If you make huge revenue but your costs are also huge well you are screwed. High revenue deduct high costs will result in small profit or even generate a loss.



Both Sony and Microsoft are large companies who do not solely rely on the video game market for making profits in their companies.
The video game industry is just a minor business adventure for both of these companies. Starting a new console both XBox 360 and PS3 results in billions of dollars in losses due to start up costs involved in introducing a new console to the market.
Remember Sony is the leading electronics manufacturer in the world. The PS3 greatly boosts the Sony HDTV's sales both Plasma and LCD's that generate much more revenue than the video game market. Sony is also the leading producer of music recording company in the world ranking in millions with contracts with famous musicians.
On the other hand Microsoft makes so much money from Windows exclusive right on PC's and software packages, etc. This alone ranks in billions of dollars for Microsoft every year.