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

Miyamotoo said:
Barkley said:

Yes...

Revenue: PSN > Nintendo

Operating Profit:  Sony G&S > Nintendo     +     ?(PSN > Nintendo)?

Net Profit: Nintendo > Sony

 

Nintendo is outperforming Sony as a company.

PlayStation is outperforming Nintendo.

PSN is possibly outperforming Nintendo.

Not exactly, whole Nintendo is outperforming Sony G&S with profit also, despite "PSN brings in more money than all of Nintendo".

Sigh.... Sony G&S doesn't have a "Net Profit"

They both have Operating Profits, so compare the figure we do have and Sony G&S is outperforming Nintendo.

It's not difficult to understand.

There is no reason to compare Net Profit to Operating Profit over Operating Profit to Operating Profit other then biased cherry picking.

 

Net Profit

Nintendo - $570m

Sony G&S - N/A

Winner - N/A

 

Operating Profit

Nintendo - $277.6m

Sony G&S - $431m

Winner - Sony G&S



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Barkley said:
Miyamotoo said:

Not exactly, whole Nintendo is outperforming Sony G&S with profit also, despite "PSN brings in more money than all of Nintendo".

Sigh.... Sony G&S doesn't have a "Net Profit"

They both have Operating Profits, so compare the figure we do have and Sony G&S is outperforming Nintendo.

It's not difficult to understand.

There is no reason to compare Net Profit to Operating Profit over Operating Profit to Operating Profit other then biased cherry picking.

 

Net Profit

Nintendo - $570m

Sony G&S - N/A

Winner - N/A

 

Operating Profit

Nintendo - $277.6m

Sony G&S - $431m

Winner - Sony G&S

Of Course that Sony G&S does not have net profit beacuse its just one part of Sony and thats why whole and only profit for Sony G&S actually is operating profit, whole Sony company has net profit Sony G&S doesnt, and that operating profit is lower than whole profit Nintendo made. Like wrote, in other words whole Nintendo made higher profit than Sony G&S despite "PSN brings in more money than all of Nintendo".

I agree thats not at all hard to understand, its very simple whole Nintendo has higher profit than Sony G&S and whole Sony company actually, but PSN has higher revenue and higher operating profit than Nintendo.



KLAMarine said:
sergiodaly said:

i was thinking more in line with the thread and talking about only games and networks sony division. that has a operation income bigger than nintendo in q1-q3 and the latest forecast by both companies points to sony making more money than nintendo in this fiscal year (sony 135 billion yen operation income just for the G&NS and nintendo intire profit will be 90 billion yen).

I have no doubt Sony's making more money in gaming than Nintendo (especially with that paid online Nintendo's now looking to get into, ugh!) but is there a reason you're using operation income (I assume you meant operating income) for Sony and profit for Nintendo?

I'm looking up the two terms on investopedia and they seem to differ slightly:

http://www.investopedia.com/terms/p/profit.asp

http://www.investopedia.com/terms/o/operatingincome.asp

sergiodaly said:

Surely sony as a whole doesn't get profit like nintendo but it's mainly because of huge spending in R&D, a lot more assets to maintain, paying interest and past debt while nintendo has low operation income but gets money from interest because have nearly no debt and have money sitting in the bank. if we look at current operations sony is currently making more money, the past choices/mismanagement and the size of the company prevents it from keeping the money they earn.

It's not as if Nintendo hasn't been spending in R&D as well.

I was using operating income for Sony Games and Network Services division because sony doesn't provide the diluted profit for the division just operating income, and i used profit for Nintendo because they did a forecast for their total profit (which is bigger than the operating income) for this fiscal year. It was only because of available data, i wasn't trying to spin data.

 

About R&D, of course nintendo spends money on R&D, obviously, but their investment will be 575 million dollars in this full fiscal year, sony will invest 4 billion dollars in this full fiscal year. It weighs on both companies but without it they don't function, all i was doing was enumerating areas where sony could improve in the future and that are hurting them now. I even conduct a little research and found out that nintendo is spending a lot in R&D but i guess they can afford it. 



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It could bring even more if they expanded their services (PS now, movies/anime etc) to more countries



Roronaa_chan said:
It could bring even more if they expanded their services (PS now, movies/anime etc) to more countries

Yeah, PS now still isn't available in Europe. I think only the UK.



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unfortunately revenue is different than profit, and Sony generally fails mega hard at having great overall margins