How in the world does PS3 account for 35% revenue? that's awesome madness.
Anyway, T2, like everyone else, needs to trim the fat right now to stay afloat and they'd better do it soon.

Is that even possible?

What I find really interesting is the distribution of costs between functions, and also the costs of goods sold. I am under the impression that game development falls under R&D costs, but if that is so then I'm really buffled. They are spending almost 3 times more on General and administrative costs than on R&D, and G&A is more than 10% of their revenue. Morever, R&D is about 4% of revenue, which is really, really low. Even for a manufacturing company that wouldn't be a lot, but for a software company it seems impossibly low. Am I missing something? Do some of the game creation costs fall under G&A? What is actually included in R&D?

Costs of goods sold includes development costs and internal royalties and licensing costs, but are those costs only related to the sold goods, meaning that the costs of development of upcoming games is not included in that figure?

There are a few exceptions but a company that has record revenues but is still losing money is the sign of a company that is being managed very poorly from the top down.

When a publisher as large as Take 2 has (basically) decided to not produce quality games for 70% of the handheld market and 50% of the home console market in order to focus their efforts on producing games at dramatically higher development costs that will never sell well enough to break even its a sign that the management is being driven by ideology rather than buisness sense. There is nothing (necessarily) wrong with being an ideological company, but when you are on the path to bankrupcy because of your ideology it may be time to question your priorities.

This is great, very well put!

Since they're a publically traded company, driving business according to an unprofitable ideology is also bound to get them into trouble.

25% down today, yep thats trouble

What.

i find this hard to belive with the blockbuster gta4 surely no game makes as much as that................

I'm willing to bet that in terms of profit there are several Nintendo games that have done much better.