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Forums - Gaming - PSN brings in more money than all of Nintendo

Teeqoz on 03 February 2017
Miyamotoo said:
Teeqoz said:

Because of foreign exchange gains...

Yup, they made $570m profit in Q3 only beacuse of foreign exchange gains. :D   

By the way, foreign exchange gains goes same for Sony too.

Not quite. They made 47 billion yen from forex gains, which is 415 million USD, while sony lost about 15 billion yen from foreign exchange trends (talking about Sony as a whole, gaming division only saw a gain of a whopping 1.4 billion yen from forex trends vs last year).



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Miyamotoo on 03 February 2017
Teeqoz said:
Miyamotoo said:

Yup, they made $570m profit in Q3 only beacuse of foreign exchange gains. :D   

By the way, foreign exchange gains goes same for Sony too.

Not quite. They made 47 billion yen from forex gains, which is 415 million USD, while sony lost about 15 billion yen from foreign exchange trends (talking about Sony as a whole, gaming division only saw a gain of a whopping 1.4 billion yen from forex trends vs last year).

Nintendo made profit of 64,670 million yen ($570m) for Q3. Pls link where it says they earned $415m on exchange rate.  But at end profit is profit.



foxtail on 03 February 2017
invetedlotus123 said:
Actually, there`s more to a company financial life than just profit. Take Amazon for example, they always make salame thin profit margins from their revenue.

You can't really compare Sony to Amazon because Amazon has had rapid Revenue growth but uses almost all that excess Revenue to fund Expansion which makes for a unique and unorthodox business model that is focused on reliable expansion. 

Amazon's expansion is seen in Amazon Web Services (cloud-computing), its physical infrastructure (as in warehouses), along with warehouse upgrades.  Also they try to keep prices low, support new markets with activity and increase capacity where possible.

Here's a great article which looks at what's happening with Amazon and the conclusions Benedict Evans makes titled "Why Amazon Has No Profits (And Why It Works)".

Please read to get a better understanding. ->   http://ben-evans.com/benedictevans/2014/9/4/why-amazon-has-no-profits-and-why-it-works

"Amazon’s business is delivering very rapid revenue growth but not accumulating any surplus cash or profits, because every penny of cash is being ploughed back into expanding the business further. But, this is not because any given business runs permanently at a loss - it is because the profits from what is already there are spent on making new businesses." - Benedict Evans


Lawlight on 03 February 2017
Miyamotoo said:
Lawlight said:

Thanks to the sale of a sports team and Sony's movie division. This doesn't change anything to the fact that Sony is doing much better in their gaming division than Nintendo.

Nintendo can make good profit even if they dont have best sales, their known for making profit from everything, so "PSN bringing in more money than all of Nintendo" means nothing if we know that Nintendo made 4x bigger profit with dead Wii U than whole Sony.

That's not true. Nintendo posted losses a few times over the past years. And PSN bringing in more money than Nintendo who had to sell a sports team, had Pokemon Go and Pokemon Sun/Moon along with the 3DS does mean something. It means Sony is doing it right gaming-wise.



Teeqoz on 03 February 2017
Miyamotoo said:
Teeqoz said:

Not quite. They made 47 billion yen from forex gains, which is 415 million USD, while sony lost about 15 billion yen from foreign exchange trends (talking about Sony as a whole, gaming division only saw a gain of a whopping 1.4 billion yen from forex trends vs last year).

Nintendo made profit of 64,670 million yen ($570m) for Q3. Pls link where it says they earned $415m on exchange rate.  But at end profit is profit.

https://www.nintendo.co.jp/ir/pdf/2017/170131e.pdf

https://www.nintendo.co.jp/ir/pdf/2016/161026e.pdf

As of 6 months of their fiscal year, they had lost 40 billion yen from foreign exchange, but after the 9 months, they had gained 7 billion yen. Conclusion: in the 3 months between, Nintendo made 47 billion from forex gains in this quarter (they both had to recoup their loss of 40 billion, and make another 7 billion to have a net surplus of 7 billion after 9 months.)

Profit is profit, but you said you wanted the whole picture.



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Barkley on 03 February 2017
Alkibiádēs said:
Too bad their profits are lower than Nintendo's.

Not if you're talking about  just gaming they're not.

Sony Gaming Divison:

FY 2014 - Operating Profit of $404 Million

FY 2015 - Operating Profit of $785 Million

Nintendo:

FY 2014 - Operating Profit ($207 million), Net Profit ($350 million)

FY 2015 - Operating Profit ($295.9 million) Net Profit ($148.5 million)

 

PlayStation has profited more then Nintendo the last two fiscal years, and it'll do it again this year.




Miyamotoo on 03 February 2017
Teeqoz said:
Miyamotoo said:

Nintendo made profit of 64,670 million yen ($570m) for Q3. Pls link where it says they earned $415m on exchange rate.  But at end profit is profit.

https://www.nintendo.co.jp/ir/pdf/2017/170131e.pdf

https://www.nintendo.co.jp/ir/pdf/2016/161026e.pdf

As of 6 months of their fiscal year, they had lost 40 billion yen from foreign exchange, but after the 9 months, they had gained 7 billion yen. Conclusion: in the 3 months between, Nintendo made 47 billion from forex gains in this quarter (they both had to recoup their loss of 40 billion, and make another 7 billion to have a net surplus of 7 billion after 9 months.)

Profit is profit, but you said you wanted the whole picture.

I don't see those numbers, can you copy them. 

Yes profit is profit, and whole picture is that despite "PSN brings in more money than all of Nintendo" Nintendo made 3x more profit than whole Sony company.

 

Lawlight said:
Miyamotoo said:

Nintendo can make good profit even if they dont have best sales, their known for making profit from everything, so "PSN bringing in more money than all of Nintendo" means nothing if we know that Nintendo made 4x bigger profit with dead Wii U than whole Sony.

That's not true. Nintendo posted losses a few times over the past years. And PSN bringing in more money than Nintendo who had to sell a sports team, had Pokemon Go and Pokemon Sun/Moon along with the 3DS does mean something. It means Sony is doing it right gaming-wise.

What's exactly not true!? Nintendo had low sales and great profit for Q3, and thats true. I never said Nintendo never had losses, but last few years Nintendo is operating in profit, despite Wii U is huge failure.



Miyamotoo on 03 February 2017
Ka-pi96 said:
Miyamotoo said:

I don't see those numbers, can you copy them. 

Yes profit is profit, and whole picture is that despite "PSN brings in more money than all of Nintendo" Nintendo made 3x more profit than whole Sony company.

Actually, no that's not the whole picture. That's just a small part of it. For the whole picture you also have to ask why, which is why others are bringing up the factors why. If you want to focus purely on who made the most profit, fine. But don't say that's the full picture when it's not.

That's actually going in details, but saying that PSN brings in more money than all of Nintendo doesnt means nothing when Nintendo made bigger profit actualy. When people see headline "PSN brings in more money than all of Nintendo" they expecting that PSN earned much more money than whole Nintendo, and that's not true.


Just for record:

Sony Game & Network Services (G&NS) 
Operating income – 431 (millions of U.S. dollars)

While Nintendo made profit of $570m



Barkley on 03 February 2017
Miyamotoo said:

Sony Game & Network Services (G&NS) 
Operating income – 431 (millions of U.S. dollars)

While Nintendo made profit of $570m

Sony's game division will profit more than Nintendo for the year, just as it did the previous two Fiscal Years.

But also you're comparing Nintendo's Net Profit against Sony's Game Divison's OPERATING Profit. We obviously don't have Net-Profit for PlayStation as it's not a seperate entity.

But if you compare Operating Profit, sony's game divison won the last quarter too.

Nintendo Operating Profit Q3 2016 - $277.6m

Sony Game & Network Services - $431m



Miyamotoo on 03 February 2017
Barkley said:
Miyamotoo said:

Sony Game & Network Services (G&NS) 
Operating income – 431 (millions of U.S. dollars)

While Nintendo made profit of $570m

Nintendo won the Quarter, but Sony's game division will profit more than Nintendo for the year, just as it did the previous two Fiscal Years.

Its not point about who won what, point is that with headline like this people expecting that PSN made more profit than whole Nintendo and thats not true, Nintendo made more money than Sony games divison and actualy 3x much more money than whole Sony company.

I dont know how much Sony's game division made profit so far, but Nintendo so far made profit of $906m, that huge profit for Nintendo if we know that 3DS is in its 6. year on market and that Wii U is dead for quiet time now. Definitely will be interesting to see next FY year with Switch on market.