Just FYI- how they calculated this list (from their own website):
We begin with the brand’s parent company, which generates earnings from:
Tangible assets – (assets with a physical form, which include fixed assets - e.g. buildings, machinery, land & current assets e.g. cash and inventory)
Intangible assets (such as patents, trademarks and brands)
Example - ‘Volkswagen AG’ is a parent company that generates earnings from tangible assets like its manufacturing plants and equipment, as well as its intangible assets - the brand names under which the cars are sold – Volkswagen, Audi, SEAT etc.
To determine the proportion of earnings directly derived from the company’s intangible assets we begin with Corporate Earnings - sourced from Bloomberg, which represent the latest annual earnings reported by the parent company. Then by using other financial data from the same source, we calculate and apply a metric called the Intangible Ratio.
By multiplying Corporate Earnings by the Intangible Ratio, we are left with Intangible Earnings, which represent earnings derived from intangible assets.
Next, we need to determine the proportion of these Intangible Earnings that are directly attributable to the brand we want to value.
To do this we take the Intangible Earnings identified in Step 1 and apply the Attribution Rate, which literally attributes a proportion of the parent company’s Intangible Earnings to the brand we want to value.
The Attribution Rate is determined by analysis of brand level financial information from the parent company’s published financial reports and other credible sources, such as data from Kantar’s Consulting and Worldpanel Divisions.
Once the Attribution Rate is applied to Intangible Earnings, we are left with Branded Intangible Earnings i.e. the proportion of the parent company’s Intangible Earnings that can be attributed to the specific brand in question e.g. this step would attribute a proportion of Volkswagen AG’s Intangible Earnings to Volkswagen, Audi, SEAT etc.
The final step is to consider the projected earnings of the brand in question, which measures the brand’s ability to generate earnings in the future and requires the addition of a final component – the Brand Multiple, which is also calculated from financial data sourced from Bloomberg. It’s similar to the calculation used by financial analysts to determine the market value of stocks (Example: 6X earnings or 12X earnings).
When we multiply the Branded Intangible Earnings from Step 2 by the Brand Multiple, we reach the brand’s true Financial Value – i.e. the proportion of the parent company’s $ value that can be attributed to the brand in question accounting for current and projected performance
So for me these rankings tell me they're piggybacking off of the success of the parent company's (Microsoft's) financial earnings, as well as projected future earnings, and don't really focus on actual gaming brand recognition. Which makes since when you look at actual sales data- with both Sony and Nintendo outselling the Xbox brand 2-1, 3-1, 10-1, sometimes even 1000-1 in worldwide markets.
Last edited by Zombie9ers - on 10 August 2019