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Forums - Sales Discussion - Take-Two Reports PS3 Biggest Revenue Generator

DarkNight_DS on 18 December 2008
Serious_frusting said:
DarkNight_DS said:
--OkeyDokey-- said:
DarkNight_DS said:
@SpartanFX: I didn't disagree but if you don't make profit off what you are doing. What's the point? If the PS3 is their biggest revenue generator and it's where most of their games were bought for. This means the PS3 was also the biggest reason they lost money.

Um... how can PS3 be both the biggest generator of revenue and the biggest contributor to their losses? For that to make sense, they'd have to be losing money on each game they sold :S

Exactly what's happened.  Games don't turn a profit until X amount are sold.  They lost money off each game sold as they never met the magic sales number.

 

 

ievery game you sell makes profit, more games sold means more profit. unless you are saying that the profits off each ps3 game is so small that they were still not able to to sell enough games to make a profit, i doubt it though

 

Read my other post which explains profit and revenue.  You don't seem to quite grasp what profit means and how you get profit.  If you spent 10 dollars for 10 chocolate bars and sold 3 of those chocolate bars for 2 bucks a piece you still lost 4 dollars.  Your revenue is 6 bucks, your loss is 4 bucks.



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

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DarkNight_DS on 18 December 2008
wfz said:
I'm amazed at how almost no one in this thread seems to realize the difference (or don't seem to realize the importance) between profits and revenue. You also have to take development costs of the games into account.

 

Hopefully my chocolate bar analogy will clue some people in ;)  Revenue is a nice number to throw around when you lost money but need a number bigger then your last number to appease investors.



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

--OkeyDokey-- on 18 December 2008
DarkNight_DS said:
--OkeyDokey-- said:
DarkNight_DS said:
@SpartanFX: I didn't disagree but if you don't make profit off what you are doing. What's the point? If the PS3 is their biggest revenue generator and it's where most of their games were bought for. This means the PS3 was also the biggest reason they lost money.

Um... how can PS3 be both the biggest generator of revenue and the biggest contributor to their losses? For that to make sense, they'd have to be losing money on each game they sold :S

Exactly what's happened.  Games don't turn a profit until X amount are sold.  They lost money off each game sold as they never met the magic sales number.

 


Ugh >_> If all of T2's HD titles were multiplat and the 360 versions made the LESS money, then wouldn't that make the 360 the biggest loser? This is all based on the assumption that HD games are responsible even though there is no evidence of that.

jcp234 on 18 December 2008
--OkeyDokey-- said:
DarkNight_DS said:
@SpartanFX: I didn't disagree but if you don't make profit off what you are doing. What's the point? If the PS3 is their biggest revenue generator and it's where most of their games were bought for. This means the PS3 was also the biggest reason they lost money.

Um... how can PS3 be both the biggest generator of revenue and the biggest contributor  to their losses? For that to make sense, they'd have to be losing money on each game they sold :S

 

This tickled me. Revenues do not equate to profits.

If I sell 1 million units of a product for $100, that's $100,000,000 in revenue (100 * 1,000,000).

If the cost to produce each unit is $200, that's $200,000,000 in cost of goods sold (200 * 1,00,000).

$100,000,000  - $200,000,000 = <$100,000,000>

That's a loss.

I'd recomment some basic finance and accounting classes.

 



I'm not a fanboy, I just try to tip the balance in favor of logic and common sense.

Serious_frusting on 18 December 2008
DarkNight_DS said:
Serious_frusting said:
DarkNight_DS said:
--OkeyDokey-- said:
DarkNight_DS said:
@SpartanFX: I didn't disagree but if you don't make profit off what you are doing. What's the point? If the PS3 is their biggest revenue generator and it's where most of their games were bought for. This means the PS3 was also the biggest reason they lost money.

Um... how can PS3 be both the biggest generator of revenue and the biggest contributor to their losses? For that to make sense, they'd have to be losing money on each game they sold :S

Exactly what's happened.  Games don't turn a profit until X amount are sold.  They lost money off each game sold as they never met the magic sales number.

 

 

ievery game you sell makes profit, more games sold means more profit. unless you are saying that the profits off each ps3 game is so small that they were still not able to to sell enough games to make a profit, i doubt it though

 

Read my other post which explains profit and revenue.  You don't seem to quite grasp what profit means and how you get profit.  If you spent 10 dollars for 10 chocolate bars and sold 3 of those chocolate bars for 2 bucks a piece you still lost 4 dollars.  Your revenue is 6 bucks, your loss is 4 bucks.


i know what it means, i am just saying that they will not sell each disk for the game at a loss. so it fair to say they made some profit off each disk sold. however they were not able to sell enough disks to cover the dev costs of the game meaning no profits overall

Nobody's perfect. I aint nobody!!!

Killzone 2. its not a fps. it a FIRST PERSON WAR SIMULATOR!!!! ..The true PLAYSTATION 3 launch date and market dominations is SEP 1st

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DarkNight_DS on 18 December 2008
--OkeyDokey-- said:
DarkNight_DS said:
--OkeyDokey-- said:
DarkNight_DS said:
@SpartanFX: I didn't disagree but if you don't make profit off what you are doing. What's the point? If the PS3 is their biggest revenue generator and it's where most of their games were bought for. This means the PS3 was also the biggest reason they lost money.

Um... how can PS3 be both the biggest generator of revenue and the biggest contributor to their losses? For that to make sense, they'd have to be losing money on each game they sold :S

Exactly what's happened.  Games don't turn a profit until X amount are sold.  They lost money off each game sold as they never met the magic sales number.

 

 

Ugh >_> If all of T2's HD titles were multiplat and the 360 versions made the LESS money, then wouldn't that make the 360 the biggest loser? This is all based on the assumption that HD games are responsible even though there is no evidence of that.

You assume that 360 games cost the same to make as PS3 games.  Have you ever seen a dev say that a PS3 game was easier to make then a 360 one?  If a Dev used the PS3 as the lead system, then chances are the 360 version was even cheaper to produce as it'd be easier to port the assets across to the other version.  DVD's are cheaper then Blu Ray discs, MS charges less to licence the games for their system.

 



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

Lafiel on 18 December 2008

@ DarkNight, jcp234, wfz )

although ofcourse you have a point your approach still is wrong...

the reason they don't make profits although the games sold within that quarter quite surely DID turn a profit, is because of the projects that are in developement and not because of the games that generated revenue/profits in that quarter

and we don't know what projects those are - it could be 100 Wii and DS projects for all we know, so DarkNights and touyos assumptions are just ridiculess and baseless
(chances are the 360 episodic dlc is eating up loads of money right now)



Serious_frusting on 18 December 2008
jcp234 said:
--OkeyDokey-- said:
DarkNight_DS said:
@SpartanFX: I didn't disagree but if you don't make profit off what you are doing. What's the point? If the PS3 is their biggest revenue generator and it's where most of their games were bought for. This means the PS3 was also the biggest reason they lost money.

Um... how can PS3 be both the biggest generator of revenue and the biggest contributor  to their losses? For that to make sense, they'd have to be losing money on each game they sold :S

 

This tickled me. Revenues do not equate to profits.

If I sell 1 million units of a product for $100, that's $100,000,000 in revenue (100 * 1,000,000).

If the cost to produce each unit is $200, that's $200,000,000 in cost of goods sold (200 * 1,00,000).

$100,000,000  - $200,000,000 =

That's a loss.

I'd recomment some basic finance and accounting classes.

 


well the 360 had the same games as the ps3 so i think it is safe to say the 360 lost take two more money then the ps3

Nobody's perfect. I aint nobody!!!

Killzone 2. its not a fps. it a FIRST PERSON WAR SIMULATOR!!!! ..The true PLAYSTATION 3 launch date and market dominations is SEP 1st

DarkNight_DS on 18 December 2008
Serious_frusting said:
DarkNight_DS said:
Serious_frusting said:
DarkNight_DS said:
--OkeyDokey-- said:
DarkNight_DS said:
@SpartanFX: I didn't disagree but if you don't make profit off what you are doing. What's the point? If the PS3 is their biggest revenue generator and it's where most of their games were bought for. This means the PS3 was also the biggest reason they lost money.

Um... how can PS3 be both the biggest generator of revenue and the biggest contributor to their losses? For that to make sense, they'd have to be losing money on each game they sold :S

Exactly what's happened.  Games don't turn a profit until X amount are sold.  They lost money off each game sold as they never met the magic sales number.

 

 

ievery game you sell makes profit, more games sold means more profit. unless you are saying that the profits off each ps3 game is so small that they were still not able to to sell enough games to make a profit, i doubt it though

 

Read my other post which explains profit and revenue.  You don't seem to quite grasp what profit means and how you get profit.  If you spent 10 dollars for 10 chocolate bars and sold 3 of those chocolate bars for 2 bucks a piece you still lost 4 dollars.  Your revenue is 6 bucks, your loss is 4 bucks.

 

i know what it means, i am just saying that they will not sell each disk for the game at a loss. so it fair to say they made some profit off each disk sold. however they were not able to sell enough disks to cover the dev costs of the game meaning no profits overall

No you don't... you really really don't.  Sigh.... they sell each and every game at a loss until they've sold enough games to cover expenses and then they make some profit.

 



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.

DarkNight_DS on 18 December 2008
Lafiel said:
@ DarkNight, jcp234, wfz )

although ofcourse you have a point your approach still is wrong...

the reason they don't make profits although the games sold within that quarter quite surely DID turn a profit, is because of the projects that are in developement and not because of the games that generated revenue/profits in that quarter

and we don't know what projects those are - it could be 100 Wii and DS projects for all we know, so DarkNights and touyos assumptions are just ridiculess and baseless
(chances are the 360 episodic dlc is eating up loads of money right now)

You are correct, however these losses have been mounting for a few years now.  They've lost more money developing for the PS3 and 360 then they brought in.  Obviously T2 doesn't have that many Wii and DS games in development and more then likely they had no more Wii and DS games in development then they've had over the past year.  They had to appease investors as the investors expect them to put their games where the largest market is.  Whether they increased any development for these systems before the financial update we have no idea.

Someone else has already stated the reason why there was more revenue this last quarter on the PS3 then previous.  They released Bioshock for the PS3.  It's a temporary jump in revenue for one system.

 



Prepare for termination! It is the only logical thing to do, for I am only loyal to Megatron.