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Forums - Gaming Discussion - Top 10 gaming companies by revenue (Sony, Microsoft, Nintendo)

Conina on 11 November 2018
Errorist76 said:

This I see revenue though, not profit. I’d really like to see a similar chart with profit.
Miyamotoo said:

First, revenue is not same thing like profit, for instance Nintendo made $1.5BN revenue for first 1st half of year, with $570m of profit from that revenue.

Well, in a chart with profits, Apple & Google will gain a few places. Since they don't make their own games, around 90% of their revenue will be profits, so ~$4 bn profits for Apple and ~$2.5 bn for Google.

No risks with expensive game developments turning out to be a flop, just ka-ching.



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Miyamotoo on 11 November 2018
Conina said:
Errorist76 said:

This I see revenue though, not profit. I’d really like to see a similar chart with profit.
Miyamotoo said:

First, revenue is not same thing like profit, for instance Nintendo made $1.5BN revenue for first 1st half of year, with $570m of profit from that revenue.

Well, in a chart with profits, Apple & Google will gain a few places. Since they don't make their own games, around 90% of their revenue will be profits, so ~$4 bn profits for Apple and ~$2.5 bn for Google.

No risks with expensive game developments turning out to be a flop, just ka-ching.

You do realise that Apple and Google share profit from their revenue with devs that releasing games on their platforms? And no, 90% of revenue is not profit.

I mean they have very good profit, but we talking with platforms with hundreds of millions devices on those platforms.



atoMsons on 11 November 2018
VAMatt said:
As I mentioned on a similar thread a few days ago - the biggest surprise to me here is that Tencent absolutely dwarfs everybody else. That just goes to show you the size of the Chinese market. And, that market is nowhere near maturity. (Yes, I know they sell outside of China as well. But, they're certainly not in the top few names if you take China revenues out.)

While it's a Chinese company, the money is not made over there. Riot Games, EPIC Games, and SUPERCELL are their big money making subsidiaries. Tencent Games itself is not that huge. You know that huge game called Fortnite is a Epic production.



Conina on 11 November 2018
Miyamotoo said:
Conina said:

Well, in a chart with profits, Apple & Google will gain a few places. Since they don't make their own games, around 90% of their revenue will be profits, so ~$4 bn profits for Apple and ~$2.5 bn for Google.

No risks with expensive game developments turning out to be a flop, just ka-ching.

You do realise that Apple and Google share profit from their revenue with devs that releasing games on their platforms? And no, 90% of revenue is not profit.

I mean they have very good profit, but we talking with platforms with hundreds of millions devices on those platforms.

You do realize that the $4.4 billion and $2.8 billion are already their 25 - 30% cut, not the whole 100% revenue?

Their total app revenue in the first half year were $22.6 billion and $11.8 billion, but that includes non-gaming apps.

Their estimate total gaming app revenue in the first half year are $16.3 billion and $10.3 billion:

https://techcrunch.com/2018/07/16/apples-app-store-revenue-nearly-double-that-of-google-play-in-first-half-of-2018/

And yes, ~90% of that software revenue is their profit. Plus crazy profits for their hardware in the case of Apple.



WhatATimeToBeAlive on 11 November 2018
OTBWY said:
Kerotan said:

Here we have the revenue earned from gaming for the big players in the industry for H1 2018 compared to H1 2017 . From the big 3 console makers we can see that Sony had the largest YOY growth and their revenue is the highest. 

 

1. Sony $6.1BN

2. Microsoft $4.2BN 

3. Nintendo $1.5BN

 

This caught me by surprise as I didn't realize Sony and Microsoft were doing so much better then Nintendo. Do you think things will change over the next few years and the list will have a different order? 

Sony



Microsoft



Nintendo



Just for some extra perspective.

Also, Nintendo just started offering online subs. We shall see.

But the numbers in this thread are gaming revenues, so what's the point of mentioning how many employees Sony and Microsoft have in total?



"The rumours of my death have been greatly exaggerated."

- Single-player Game

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VAMatt on 11 November 2018
atoMsons said:
VAMatt said:
As I mentioned on a similar thread a few days ago - the biggest surprise to me here is that Tencent absolutely dwarfs everybody else. That just goes to show you the size of the Chinese market. And, that market is nowhere near maturity. (Yes, I know they sell outside of China as well. But, they're certainly not in the top few names if you take China revenues out.)

While it's a Chinese company, the money is not made over there. Riot Games, EPIC Games, and SUPERCELL are their big money making subsidiaries. Tencent Games itself is not that huge. You know that huge game called Fortnite is a Epic production.

We covered that a few posts up.



Errorist76 on 11 November 2018
Conina said:
Errorist76 said:

This I see revenue though, not profit. I’d really like to see a similar chart with profit.
Miyamotoo said:

First, revenue is not same thing like profit, for instance Nintendo made $1.5BN revenue for first 1st half of year, with $570m of profit from that revenue.

Well, in a chart with profits, Apple & Google will gain a few places. Since they don't make their own games, around 90% of their revenue will be profits, so ~$4 bn profits for Apple and ~$2.5 bn for Google.

No risks with expensive game developments turning out to be a flop, just ka-ching.

I assume MS would lose some, as they’re mostly selling their consoles at a loss.



KazumaKiryu on 11 November 2018
Kerotan said:

Here we have the revenue earned from gaming for the big players in the industry for H1 2018 compared to H1 2017 . From the big 3 console makers we can see that Sony had the largest YOY growth and their revenue is the highest. 

1. Sony $6.1BN

2. Microsoft $4.2BN 

3. Nintendo $1.5BN

Interesting infos. Thanks!



Miyamotoo on 11 November 2018
Conina said:
Miyamotoo said:

You do realise that Apple and Google share profit from their revenue with devs that releasing games on their platforms? And no, 90% of revenue is not profit.

I mean they have very good profit, but we talking with platforms with hundreds of millions devices on those platforms.

You do realize that the $4.4 billion and $2.8 billion are already their 25 - 30% cut, not the whole 100% revenue?

Their total app revenue in the first half year were $22.6 billion and $11.8 billion, but that includes non-gaming apps.

Their estimate total gaming app revenue in the first half year are $16.3 billion and $10.3 billion:

https://techcrunch.com/2018/07/16/apples-app-store-revenue-nearly-double-that-of-google-play-in-first-half-of-2018/

And yes, ~90% of that software revenue is their profit. Plus crazy profits for their hardware in the case of Apple.

We were talking about profit, are you saying that Apple and Google taking 90% profit of all revenue for games while devs are taking only 10%? Do you have something to backup that?



Conina on 11 November 2018
Miyamotoo said:
Conina said:

You do realize that the $4.4 billion and $2.8 billion are already their 25 - 30% cut, not the whole 100% revenue?

Their total app revenue in the first half year were $22.6 billion and $11.8 billion, but that includes non-gaming apps.

Their estimate total gaming app revenue in the first half year are $16.3 billion and $10.3 billion:

https://techcrunch.com/2018/07/16/apples-app-store-revenue-nearly-double-that-of-google-play-in-first-half-of-2018/

And yes, ~90% of that software revenue is their profit. Plus crazy profits for their hardware in the case of Apple.

We were talking about profit, are you saying that Apple and Google taking 90% profit of all revenue for games while devs are taking only 10%? Do you have something to backup that?

No, I'm saying that Apple had a gaming revenue of 16.3 billion dollar in 1H 2018 and that their cut of that revenue was 4.4 billion dollar.

These 4.4 billion dollar aren't 100% profit, since they will have some expenses to keep their servers running, pay internet traffic and pay support people. But probably 90% of the 4.4 billion dollar are profit, so around 4.0 billion dollar. The full year 2018 will be a profit of at least 8 billion dollar (the christmas quarter is usually a lot stronger).

For comparison, the operating income of Sony's gaming segment was ~1.55 billion dollar (177 billion yen) last year: