Forums - Sales Discussion - Is ANYBODY profiting on the PS3 right now?

Remember, I'm trying to consider the profit picture for each player on the scene. Sony has a disadvantage in that they're losing money on the hardware, and if the numbers are as we've been led to believe Resistance and Motorstorm are not enough to make up the difference, even if each sale were 100% profit with no development, marketing, or production/distribution costs. Retailers ultimately have the best shot at a profit right now, but only if they can avoid overstocking consoles or titles -- one unsold PS3 temporarily eats the profit on 30-50 individual game sales, assuming a PS3 wholesale cost of at least $500 and profits per game sold of $10-$15. (Which if true only leaves $45-$50 income for the publishers at a wholesale level for each retail unit sold, exacerbating their situation.)



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Ubisoft has sold Red Steel (which they seriously overspent on) and Rayman. But they have not seen numbers for Prince of Persia, TMNT, or Blazing Angels. I wouldn't feel comfortable putting any of those companies in anything more than the maybe category. There's no comparison to something like Insomniac, where we know they've made money off the system. I would agree that the rest of Sony's definitely seeing a boost. Blu-ray is beating HD-DVD largely as a result of PS3. I personally have been considering an HDTV lately as well, even though I don't plan on buying PS3 until it drops to $400.



PS3 has sold 1,185,030 pieces of Software in japan and 2,903,735 pieces of Software in the USA. (USA Numbers are 2007 only). that is just north of 4 million titles.

If the developers were truthful with "we need to sell 500,000 to turn a profit" then a maximum of 8 PS3 games, can have been profitable, we know this is not true, as currently PS Sellers are

USA

Blazing Angels: Squadrons of WWII Ubisoft 102,557
NBA 2K7 Take 2 147,118
Enchanted Arms Ubisoft 25,765
NBA 07 Sony 157,501
Formula One: Championship Edition Sony 53,189
Tiger Woods PGA Tour 07 EA 141,082
Marvel: Ultimate Alliance Activision 189,295
College Hoops 2K7 Take 2 29,950
Call of Duty 3 Activision 239,104
Need for Speed: Carbon EA 214,342
Def Jam Icon EA 76,065
Armored Core 4 Sega 36,507
Virtua Tennis 3 Sega 35,287
Madden NFL 07 EA 383,443
Sonic the Hedgehog Sega 103,304
The Godfather: Dons Edition EA 49,705
Virtua Fighter 5 Sega 124,829
Fight Night Round 3 EA 215,223
Major League Baseball 2K7 Take 2 115,977
Tom Clancy Splinter Cell: Double Agent Ubisoft 59,380
Motorstorm Sony 270,760
Elder Scrolls IV: Oblivion Take 2 133,189
Resistance: Fall of Man Sony 685,659
F.E.A.R. Vivendi 67,531
Spiderman: The Movie 3 Activision 128,379

Japan

Mist of Chaos Idea Factory 9,466
Mobile Suit Gundam: Target In Sight Bandai 134,583
Ridge Racer 7 Namco 134,568
Resistance: Fall of Man Sony 121,189
Winning Post 7: Maximum 2007 Koei 15,193
Madden NFL 07 EA 4,114
Gundam Musou Koei 271,277
Pro Baseball Spirits 4 Konami 56,963
Power Smash 3 Sega 22,202

Of this list ONE game is a 500K seller, although many of the US games, are Shovelware Ports of 360 titles, and certainly dont need to sell 500k to turn a profit.

I have highlighted in Blue games that VERY LIKELY have turned a profit at this point, and Red at ones who VERY LIKELY Havent.

Black ones are Multiplat ports, and we will never know what their PS3 Dev costs are, in relation to profits, and it doesnt matter, these games are designed to be sold on everything, not any one console.

 

If anyone disputes any coloring, Tell me, and ill update it, as this is quick and dirty

 



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Quantum-Tarantino said:
PS3 has sold 1,185,030 pieces of Software in japan and 2,903,735 pieces of Software in the USA. (USA Numbers are 2007 only. that is just north of 4 million titles. If thedevelopers were truthful with "we need to sell 500,000 to turn a profit" then a maximum of 8 PS3 games, can have been profitable, we know this is not true, as currently PS Sellers are USA Blazing Angels: Squadrons of WWII Ubisoft 102,557 NBA 2K7 Take 2 147,118 Enchanted Arms Ubisoft 25,765 NBA 07 Sony 1,343 157,501 Formula One: Championship Edition Sony 53,189 Tiger Woods PGA Tour 07 EA 141,082 Marvel: Ultimate Alliance Activision 189,295 College Hoops 2K7 Take 2 29,950 Call of Duty 3 Activision 239,104 Need for Speed: Carbon EA 214,342 Def Jam Icon EA 76,065 Armored Core 4 Sega 36,507 Virtua Tennis 3 Sega 35,287 Madden NFL 07 EA 383,443 Sonic the Hedgehog Sega 103,304 The Godfather: Dons Edition EA 49,705 Virtua Fighter 5 Sega 124,829 Fight Night Round 3 EA 215,223 Major League Baseball 2K7 Take 2 115,977 Tom Clancy Splinter Cell: Double Agent Ubisoft 59,380 Motorstorm Sony 270,760 Elder Scrolls IV: Oblivion Take 2 133,189 Resistance: Fall of Man Sony 685,659 F.E.A.R. Vivendi 67,531 Spiderman: The Movie 3 Activision 128,379 Japan Mist of Chaos Idea Factory 9,466 Mobile Suit Gundam: Target In Sight Bandai 134,583 Ridge Racer 7 Namco 134,568 Resistance: Fall of Man Sony 121,189 Winning Post 7: Maximum 2007 Koei 15,193 Madden NFL 07 EA 4,114 Gundam Musou Koei 271,277 Pro Baseball Spirits 4 Konami 56,963 Power Smash 3 Sega 22,202 Of this list ONE game is a 500K seller, although many of the US games, are Shovelware Ports of 360 titles, and certainly dont need to sell 500k to turn a profit.
Interesting list QT.

 



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At least the component manufacturers are probably making a profit.



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NJ5 said:
At least the component manufacturers are probably making a profit.

Definitely. IBM/ATI/NVIDIA are raking in the dough.



Shane said:
Ubisoft has sold Red Steel (which they seriously overspent on) and Rayman. But they have not seen numbers for Prince of Persia, TMNT, or Blazing Angels. I wouldn't feel comfortable putting any of those companies in anything more than the maybe category. There's no comparison to something like Insomniac, where we know they've made money off the system. I would agree that the rest of Sony's definitely seeing a boost. Blu-ray is beating HD-DVD largely as a result of PS3. I personally have been considering an HDTV lately as well, even though I don't plan on buying PS3 until it drops to $400.

Blu-Ray movies are outselling HD because they have been on sale for around $20 consistently for more than 4 months now. Given that 360s outnumber PS3s, if HD movies drop to the same price this would no longer be true. $30-$35 for a HD movie is too much and I know a lot of frustrated 360 owners who want to buy HD movies but will not shell out that much for a single movie. What I cant understand is why HD is letting BR trample over them at such a critical time. They cost less to produce but I guess some greedy bastard somewhere doesnt care about the future of their format (not that I care either).



I think blu-ray will win the format wars unless something completely unexpected happens.  However, they can't rely on the PS3 as the only means of getting it out.  There are only 1.44 million PS3 owners in the U.S.  and it will be a very long time before there are 20 million.  There are 300 million people in the U.S.  The only way blu ray can replace DVDs is if people start buying blu ray players in large numbers, and that probably won't happen until they're down to about 200 dollars.  By then the PS3 won't be the main thing playing blu rays.

As for what the topic creator said, I think there must be some retailers and publishers making a profit.  I do agree that a lot of people are not profiting on it, however.



We won't see the real numbers on what 3rd party Wii games can actually do until 3rd parties actually start trying to make decent games.



We should know first how many games you must sell to make profit . The only word we have is the 500K from Namco Bandai but that number seems totally absurd .First because it was refering to a game (RR7 )that is a conversion in 1080p from RR6 in the X360 (alredy made game ) and second because that would imply 85% of the games on the market are flops as few arrive to the half a million number .I dont think that Koei ,that churned out Gundam Mussou in less than 2 months and a half ,really needed to sell 500K copies to make a profit on a generaly low profile (technologically speaking ) game .They would like to have sold 500K but dont thint they have efectively lost money selling 300K only in Japan.That 500K number may be allright speaking of superproductions as MGSIV ,Gears of War or Killzone 2 but lets see ....60 dollars and 500 000 games sold are 30 million dollars in revenue ...of course the stores and the royalties are to be paid but ....not all games need 30 million dollar in revenue . Wii games may be less expensive to produce ,but they are also cheaper in the stores .