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Forums - Gaming Discussion - PSN alone almost generated the same sales than all of Nintendo in 2015

Ali_16x on 24 April 2016
cfin2987@gmail.com said:

So Somy gave away more games for FrEe than Nintendo sold for 30-60 per unit? I guess they aren't free with the subscription but yeah, applies vs oranges. 

Wut? lol? That's not even close to how Plus works. For one, you don't pay anything so they're not getting anything when they give away the games for free. They actually pay the developers by how many people download the game.



"There is only one race, the pathetic begging race"

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baloofarsan on 24 April 2016
cfin2987@gmail.com said:

So Somy gave away more games for FrEe than Nintendo sold for 30-60 per unit? I guess they aren't free with the subscription but yeah, applies vs oranges. 

 

I have not seen anyone report on how much developers get for a game on PSN but Sony confirmed that they pay developers in cash.

"Sony’s Brian Silva confirmed publicly today at IndieCade in Los Angeles that the company does pay developers to use their games in PlayStation Plus promotions"

https://www.vg247.com/2013/10/03/sony-confirms-they-pay-devs-cash-to-include-their-games-in-ps/

 



Ck1x on 24 April 2016

People love to throw around sells and data figures, but if Sony were in such amazing shape they wouldn't be closing down studios and laying employees off when a game doesn't meet some set goal...



Turkish on 24 April 2016
Ck1x said:
People love to throw around sells and data figures, but if Sony were in such amazing shape they wouldn't be closing down studios and laying employees off when a game doesn't meet some set goal...

Yeah a game or underperforming studio is not a reason to close a studio, Sony would've let them continue losing money "if they were in amazing shape".



Turkish on 24 April 2016

Amazing how much salt this created lol. "bbut but but, PS+ this, PS+ that..", who cares, point is Sony is almost making as much money off PSN alone as all of Nintendo.



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Kerotan on 24 April 2016
kowenicki said:
Kerotan said:
Incredible stat. Sony really turned things around from last gen!

lol.

....by adding a simple charge that Sony fans swore they'd never pay.

Its not rocket science.

They copied MS and made money... simple.

I never said I wouldn't pay it.  So speak for yourself.  

 

It was nice going q whole gen not paying while you guys got ripped off.  MS didn't even have the decency to throw in a monthly game or two. 

 

Then ps plus comes along for ps3. It was optional but it was the best gaming subscription service on the market thanks to the monthly games and that made it easy peasy for Sony to implement permanently without any major backlash. 

 

You can thank Sony because MS copied them with their superior offering.  

User moderated -RavenXtra



Viktor on 24 April 2016
AEGRO said:

Did you platinum'd the stock game? Because as a gamer i care about games, not profitability of the company.

I stay loyal to Sony because the bring the games, i couldnt care less about their bank account.

Whats funny is how Nintendo with all that cash ended up creating the Wii U.

tell that to the poor PS handheld division, with no further 1st party games and likely no successor in the works.



Train wreck on 24 April 2016
RolStoppable said:
setsunatenshi said:

you mentioned the profits from gaming earlier in your original post. does this graphic show the results from the SCE branch or of Sony as a whole? and why does it stop at 2011? thanks

Yes, the graph shows the results of SCE, not Sony as a whole. The reason why there has been no newer graph is that Sony combined several divisions for the fiscal year that would be labeled as 12 if a newer graph consisted. As far as I remember, PlayStation shared a division with unsuccessful products like TVs and Vaio, so the division posted a huge loss. Sony didn't provide a breakdown for the individual product lines, so it's impossible to create a complete chart. Nowadays PlayStation has its own division again.

As for your doubts that the graph could be incorrect because of the loss during the early PS2 era, that's easily explained. As you should know, the PS2 doubled as a DVD player and it was among the cheapest on the market at that time. That could only be achieved by selling the PS2 at a significant loss which then showed up in the PlayStation division despite the PS1 still going strong at that time. Sony's lossleading strategy is one of the main reasons why their profits don't match Nintendo's. They aggressively buy market share early on and then hope to make it back and some more in the later stages of a system's life. On the graph you can also see a small profit in 05. While that is the time when the PS2 was raking in the cash, it's also the time of the PSP's launch. Then the PS3 begins to show its ugly face.

baloofarsan said:

It should be remembered when using these numbers that Gamboy and DS have saved Nintendo most of these years. The home console branch has not been this profitabe (except for Wii). 

I wouldn't say that handhelds have saved Nintendo. Their home consoles have always had high sales for first party games and controllers, two things that have high profit margins. The N64 and GC were profitable endeavors over their respective lifetimes. That's irrelevant to my comparison though. Nintendo's best year vs. all years of Sony.

Dunban67 said:

your 1st staytment makes no sense and sounds childish

do you have legit sources for the 2nd  statement? -   pretty sure that A) it s not true and B) Sony only recently started breaking out their gaming division P & L s so it would be difficult if not impossible to know how much Sony has made from their gaming division historically unless Sony has stated as much outside their normal  earnings and reporting

My first statement makes sense. It was a response to Ka-pi who said:

Regardless it shows how much money a successful console can bring in with 3rd parties on board.

The implication of Ka-pi's post is that it should be a priority for Nintendo to bring third parties on board. I suppose it needs to be said that Ka-pi has a history of having such a stance. My counterpoint to that was to mention how much money can be brought in even when there is no strong third party support. My post wasn't constructed at random.

The graph I posted shows SCE's profits during the years that PlayStation had its own division. The graph ends right before the point where Sony lumped several product lines together. After a couple of years PS was its own division again.

Im sure that on one has pointed out that the graph you posted is misleading.  The title of the chart and the information listed in it are comparing two different things.



mountaindewslave on 24 April 2016

bear in mind revenue and profit are not the same thing. Sony has gigantic revenues across their whole company, but they've still be losing money on average. as another example, they had gigantic revenues in their video game division during the PS2 / PSP era yet lost money....... :/ 

 

don't be fooled by revenue. its gross. not profit. Granted you would assume they are making lots of money from network game sales as there is no costly distribution or complications, however Sony is probably losing money from the sale of their hardware among other things so it likely evens out.

of course with the failing Wii U Nintendo's revenues can't compete, even with the popular PLaystation network.

I would debate it is not really that valuable of a stat though. If you want to start comparing things and why its sort of irrelevant (the revenue), then compare what revenue Valve pulls in through Steam, it probably is much larger than the Playstation Network but, again, revenue doesn't necessarily have any relevance on profit or what money a company makes

ironically Sony is a perfect example of this, as they pull in massive amounts of money through all of their electronic sectors but unfortunately after costs are accounted for have not been significantly profiting in a long long time. Sony may bring in wayyyy more money than Nintendo but it doesn't magically make them have much in the bank. They have a lot less than Nintendo saved and it speaks volumes for the importance of balancing your budget. 

Microsoft has tried the tactic of doing whatever it takes to sell their systems/games to force their precense into the gaming market for the last decade and have yet to ever make money from that division. Just because you create high revenues doesn't mean its a successful business. Just sort of parroting business 101 here, but people tend to post numbers on threads on sites like this without actually analyzing them. a big number is nothing if your backend costs are too high



Viktor on 24 April 2016
baloofarsan said:
RolStoppable said:

It should be remembered when using these numbers that Gamboy and DS have saved Nintendo most of these years. The home console branch has not been this profitabe (except for Wii). 

What do you think SCEs graphs would have looked like without PSP from 2004-2011? Especially during PS3s first years and SCEs record negative years.