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

Miyamotoo on 11 November 2018
Conina said:
Miyamotoo said:

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:

So you dont have anything to backup those 90% of profit. Also why we have two revenue numbers for Apple gaming?



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OTBWY on 11 November 2018
WhatATimeToBeAlive said:
OTBWY said:

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?

Highlighted. 



Conina on 11 November 2018
Miyamotoo said:
Conina said:

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:

So you dont have anything to backup those 90% of profit.

So you still don't understand that I'm not talking about a 90/10 split between Apple and developers. I'm talking about their cut (~30%) of the revenue after paying out the developers' cut (~70%). Apple's cut is $4.4 billion and their estimated profit is around $4.4 billion.

Miyamotoo said:

Also why we have two revenue numbers for Apple gaming?

Here we go again... step-by-step this time:

  • Apple's total app revenue in the first half year was $22.6 billion, but that includes non-gaming apps.
  • Apple's total gaming app revenue in the first half year was $16.3 billion.
  • Apple's share of that total gaming app revenue in the first half year was $4.4 billion.
  • Apple's estimated gaming app profit in the first half year was ~$4 billion (so ~90% of 4.4 billion)
  • Google's total app revenue in the first half year was $11.8 billion, but that includes non-gaming apps.
  • Google's total gaming app revenue in the first half year was $10.3 billion.
  • Google's share of that total gaming app revenue in the first half year was $2.8 billion.
  • Google's estimated gaming app profit in the first half year was ~$2.5 billion (so ~90% of 2.8 billion)
  • Sony's total gaming revenue in the first half year was $6.1 billion (higher than Apple's or Google's share).
  • Sony's estimated gaming profit in the first half year was probably around $1 billion (last year it was $1.55 billion for a full year)
Ergo Sony's gaming revenue shown in the Newzoo chart is higher but their profit is lower compared to Apple or Google.
Ergo Apple and Google Apple & Google will gain a few places in a profit chart... like I wrote above before you answered with your "You do realise" post.


Kerotan 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.

Oh we'll see. I predict Sony profits will only go higher. Nintendo too but not nearly as high as Sony. BTW these are gaming revenues so maybe you should list the respective employees they have in that sector to make a point. Sony also have a huge amount of revenue not counted as gaming revenue from things like Fate/Grand order are not counted here and it's huge. 

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.

Well they own 40% of Fortnite. 



flashfire926 on 11 November 2018

Bottom line is, all these console warrz can't spin the fact that ALL the big three are doing very well. Nintendo and Sony we know for sure are making profits. Microsoft doesn't share much, but ZhugeEX on Resetera said Xbox turned a profit in 2017, and if they are doing better in 2018 than in 2017, than surely they're still turning a profit.



Bet with Intrinsic:

The Switch will outsell 3DS (based on VGchartz numbers), according to me, while Intrinsic thinks the opposite will hold true. One month avatar control for the loser's avatar.

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DonFerrari on 11 November 2018

I was surprised with such a good showing from MS and pleased to have some numbers even if they aren't exclusively about X1 games.

Nintendo is low imho, but they also haven't released big games on the first half of the year.

However congrats to Sony and I never had heard of tencent before =p

And to people talking about profit, that is a lot harder for an external party to guess if the info on the books aren't available since every company cost structure is different. Also the comparison on number of employees is ridiculous, it isn't about the gaming department but full company, talk about apples and oranges.

Last edited by DonFerrari - on 11 November 2018

duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."