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Forums - Sales - EA made bank off PS3?

Sick. And there are still almost 6 million more 360's out there.



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Wii = PSP in Q1? LOL.



like the Kotaku article says, it really doesn't make any sense



"Dr. Tenma, according to you, lives are equal. That's why I live today. But you must have realised it by now...the only thing people are equal in is death"---Johann Liebert (MONSTER)

"WAR is a racket. It always has been.

It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives"---Maj. Gen. Smedley Butler

Making a lot of revenue without profit is not bank.



One thing to consider is if you sell RockBand to retailers for $125 and it costs you $95 to manufacture and licence the game  and you sell another game to retailers for $45 and it costs you $15 to manufacture and licence the game, if you sell the same number of copies of each game you will get 277% the revenue from RockBand as the other game but your actual income would be equal ... Hypothetically speaking, if RockBand cost twice as much to develop your profit and return on investment would be far worse than the other game even though its revenues were far greater.

 



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Onimusha12 said:

They're only counting the cost of development for porting the games to the PS3 where as the actual cost of developing the game is attributed to the cost of original 360 version..

I hope you are not a public accountant.

 

Sony accounts for 61% of EA's net revenue.  I wonder if Peter Moore is going to get a PS3 tattoo.

 

 



Thanks for the input, Jeff.

 

 

Squilliam said:
If you scroll down in that statement you will see the more accurate numbers in the "non-GAAP revenues" section, and the PS3 definitely does not lead the PS3.

Xbox 360: 81
PC: 70
PS3: 68
PS2: 40
Wii: 39
PSP: 26
DS: 21

 

Unfortunately, Squilliam is correct.  It appears the difference between the GAAP and non-GAAP numbers is some deferred net revenue that was recognized in the quarter.  If you add the deferred net revenue with Squilliam's non-GAAP numbers they equal the GAAP numbers quoted in the article.  EA is required to report GAAP numbers with their filings, but they view the non-GAAP numbers to be a better indicator of quarterly performance.

 Change in Deferred Net Revenue (Packaged Goods and Digital Content)
  PLAYSTATION 3   71
  PlayStation 2      39
  Wii                      18
  PC                      16
  Wireless               1
  PSP                     31



Thanks for the input, Jeff.

 

 

Well, I guess for the less than 1% of people that are going to see that Sony only came in 3rd over all behind the PC and 360 this statement will still be slightly surprising, but to the 99% of people that arent going to see all the crap about GAAP numbers and revenue streams, these numbers are just going to equal big talking points and free media coverage across the net, see Kotaku for example.

Either which way, these numbers are great for Sony.



I own all three current consoles and a great gaming rig, now thats out of the way.

This space Reserved for the Nuggets of Wisdom dropped by Bladeforce:

"Why post something like this when all it will get is PS3 owners blinded to reality replying? BOTH THE PS3 AND BLUE-RAY WILL NOT LAST 3 YEARS! TECHNOLOGY CHANGED TOO FAST!"

"is it Wii FIt that has sold as many as PS3's sold? Thats a LOL Look at the total sales of software is it just me that sees Nintendo titles hitting 10m+ and you say they arent making a difference? Another LOL!"

"Hell, with all the negative hype Sony spin, people just aren't interested cost is too high and to get the true HD experience (1080p, 7.1 surround) you will need a $1000+ system. THAT IS GOING TO DO IT IN A RECESSION! PS4 will not happen"

As others have pointed out, revenue does not equal profits.

I would be much more interested to see where EA is making the most profits. That information could give us an idea of where EA's business will be heading in the future as they throw more support behind their more profitable ventures, and less support behind their less profitable ventures.



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I guess this somewhat explains why EA posted a loss in Quarter 1?