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

outlawauron on 18 December 2008
DarkNight_DS said:
Revenue means nothing if there is no profit to go with it. Who's to say if the PS3 games were profitable or not. It'd have been nice if T2 included that info with their financials. Then we'd have something to discuss!

Well, 35% of 1.5 billion is more than enough to cover all the expenses of GTA 4 and NBA 2K9 as they were the only big games released during this financial.



"We'll toss the dice however they fall,
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Then follow young Mat whenever he calls,
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Serious_frusting on 18 December 2008
DarkNight_DS said:
--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.

 


ok so how much are PS3 games to make then the 360? i doubt it is as much as what your thinking, anyway we dont know what projects they have in the works which are clearly eatibg into the profits and if not for the ps3 games that were sellinb in the quater it would look alot worse. i am sure they have probably of made profits on the ps3 games that are already released

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jcp234 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)

 

Right. So a company that is well aware of its operations costs and has been experiencing financial instability for quite some time is going to intentionally and strategically allocate a large portion of expenses and resources to the development of future projects in the same year as its blockbuster tentpole title for what reason?

This year posed the biggest potential for profits for their company, and businesses want their financial statements to look good for investors. I just have a hard time swallowing your theory. In a situation like this, a SMART company would postpone development on future projects that would compromise profits until the next fiscal year.

If what you're saying is true, then this company obviously needs new management. That is not to say that you are wrong, I just find it hard to believe.



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

outlawauron 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 = <$100,000,000>

That's a loss.

I'd recomment some basic finance and accounting classes.

 

And I'd reccomend common sense being that the money brought in from the PS3 sales more than covers the expenses. And the fact that the discs do not cost more than $60 to produce.

EDIT: That came across a lot ruder than intended. Treat it as a quip, not an insult or any that crap.



"We'll toss the dice however they fall,
And snuggle the girls be they short or tall,
Then follow young Mat whenever he calls,
To dance with Jak o' the Shadows."

Check out MyAnimeList and my Game Collection. Owner of the 5 millionth post.

DarkNight_DS on 18 December 2008
outlawauron said:
DarkNight_DS said:
Revenue means nothing if there is no profit to go with it. Who's to say if the PS3 games were profitable or not. It'd have been nice if T2 included that info with their financials. Then we'd have something to discuss!

Well, 35% of 1.5 billion is more than enough to cover all the expenses of GTA 4 and NBA 2K9 as they were the only big games released during this financial.

I wish that made sense but it doesn't.

 



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

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--OkeyDokey-- on 18 December 2008

FFS...

DarkNight and the other guy completely misunderstood what I said so I'm not even gonna bother.

Bottom line, none of know enough to say WHAT exactly is responsible for T2's losses. It could be a million different things that have nothing to do with the PS3 for all we know.



bucknasty on 18 December 2008

The doom and gloom on this forum seems overblown. the guys i know who do have 360's would jump ship in a minute and buy a PS3 if it was a little bit cheaper as for the games they are getting better with great exclusives live MGS4, LBP and R2. I think once Sony cuts the price you are going to see a drastic shift in the console wars.



outlawauron on 18 December 2008
DarkNight_DS said:
outlawauron said:
DarkNight_DS said:
Revenue means nothing if there is no profit to go with it. Who's to say if the PS3 games were profitable or not. It'd have been nice if T2 included that info with their financials. Then we'd have something to discuss!

Well, 35% of 1.5 billion is more than enough to cover all the expenses of GTA 4 and NBA 2K9 as they were the only big games released during this financial.

I wish that made sense but it doesn't.

 

That the PS3 brought 35% of their 1.5 billion revenue.

 

I'm saying that, 35% of that 1.5 billion is more than enough to cover the costs of the games released and thus the PS3 being profitable for Take-Two this quarter.



"We'll toss the dice however they fall,
And snuggle the girls be they short or tall,
Then follow young Mat whenever he calls,
To dance with Jak o' the Shadows."

Check out MyAnimeList and my Game Collection. Owner of the 5 millionth post.

DarkNight_DS on 18 December 2008
Serious_frusting said:
DarkNight_DS said:
--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.

 

 

ok so how much are PS3 games to make then the 360? i doubt it is as much as what your thinking, anyway we dont know what projects they have in the works which are clearly eatibg into the profits and if not for the ps3 games that were sellinb in the quater it would look alot worse. i am sure they have probably of made profits on the ps3 games that are already released

If they had made money off the PS3 games they would have said so.  They didn't!  We know this already.  How much more does a PS3 game cost?  About 1-2$ per disc, and another 1-3$ for licencing fee's.  Dev costs are easy to calculate if you know the duration it took each game to be finished.  Go back and look at some old discussions about GTA4 delays.  Somewhere they mentioned the 360 version was done and the game was delayed to finish the PS3 version.

 



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

DarkNight_DS on 18 December 2008
outlawauron said:
DarkNight_DS said:
outlawauron said:
DarkNight_DS said:
Revenue means nothing if there is no profit to go with it. Who's to say if the PS3 games were profitable or not. It'd have been nice if T2 included that info with their financials. Then we'd have something to discuss!

Well, 35% of 1.5 billion is more than enough to cover all the expenses of GTA 4 and NBA 2K9 as they were the only big games released during this financial.

I wish that made sense but it doesn't.

 

That the PS3 brought 35% of their 1.5 billion revenue.

 

I'm saying that, 35% of that 1.5 billion is more than enough to cover the costs of the games released and thus the PS3 being profitable for Take-Two this quarter.

 

You still make no sense.  You don't understand how economics work.  Your costs incured are for all your games currently being printed and currently in development as well as all your other overhead.  PS3 made no money.  They would have been praising the PS3 for bringing in money and finger pointing at the 360 if it lost money.



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