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

How about GTA4 in japan? anyway a hell of a lot of assumption going on.



 

 assumption is the mother of all f**k ups 

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joshin69 said:
How about GTA4 in japan? anyway a hell of a lot of assumption going on.

 

 DING DING DING! GTA4 sold 500k copies(Ps3) last quarter. I'm sure it shipped 600-700k. Compared to 300k copies (360) which I'm sure only shipped 350-400k. A lot more difference than what bioshock would have made



outlawauron said:
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.

Lots of tangible and intangible factors determine the overall cost of a product. Not just the physical media.

And I do not understand how your comment is applicable to me. The poster I originially quoted seemed skeptical of an item being responsible for losses when it generates revenues. I was just illustrating how a product can generate revenue and losses. I never made a specific comment about the PS3 or its revenues/expenses.

 

But I appreciate your input.



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

Lafiel said:
jcp234 said:

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.

A "smart" company would go for short term profits instead of long term growth? I find that one hard to believe to be honest.

 

Well, some companies have the financial stability so they do not have to sacrifice either. The company in question has been bleeding money for quite some time.

And most companies that reinvest for long term growth, usually use PROFITS to reinvest. When a company is suffering loss after loss, it needs to stabalize the decline in capital value.

And I never said the the two  are mutually exclusive; however, what company would allocate resources to development on future projects at such an extent as to totally exhaust profits in the same fiscal year as their tentpole release?

Do you know what kind of message that sends to investors? You're a company already in trouble....you just released your defining title and there is still no real benefit evident on the financial statements?



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

Max King of the Wild said:
joshin69 said:
How about GTA4 in japan? anyway a hell of a lot of assumption going on.

 

 DING DING DING! GTA4 sold 500k copies(Ps3) last quarter. I'm sure it shipped 600-700k. Compared to 300k copies (360) which I'm sure only shipped 350-400k. A lot more difference than what bioshock would have made

 

 GTA4 is published by Capcom in Japan



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koffieboon said:
Max King of the Wild said:
joshin69 said:
How about GTA4 in japan? anyway a hell of a lot of assumption going on.

 

 DING DING DING! GTA4 sold 500k copies(Ps3) last quarter. I'm sure it shipped 600-700k. Compared to 300k copies (360) which I'm sure only shipped 350-400k. A lot more difference than what bioshock would have made

 

 GTA4 is published by Capcom in Japan

 

 You don't think the owners of the game get any of that money?



Congrats PS3! Apparently you can make the most revenue but lose the most money. lol.

Haters eat crow. This is another company who makes most of their revenue off of the PS3.



DarkNight_DS said:
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.

 

Do you have any data pointing towards a substantially higher development cost for the PS3 version of a multiplat game? Considering the source make no mention of this, don't assume, especially when you're criticising others for also assuming.

Development for a PS360 is often linked, the cost of development for 1 might be higher than the other but never to such a substantial degree that can offeset a 10%+ revenue intact when talking about hundreds of millions of dollars; the engine are the same and much of the coding is also the same, its impossible to praise one of them for bringing in the money and the other for losing it when development cost is not seperated and when the 360 still generated more revenue than the PS3 for the financial year. The lost most likely comes from cost in developing future project such as LA Noire etc.

Also The revenue here merely shows a pattern of consumer purchase for PS3 and 360, especially in europe, where games don't tend to frontload as much as the US.




DMeisterJ said:
Congrats PS3! Apparently you can make the most revenue but lose the most money. lol.

Haters eat crow. This is another company who makes most of their revenue off of the PS3.

I take it you conveniently skipped over BengaBenga's post above, right? Here let me help you out:

BengaBenga said:
Before we get too exited, the PS3 share only counts for the last quarter. Over the whole year the share is like this:

360: 39%
PS3: 34%
Wii: 9%

Still good news for PS3, but not the "biggest revenue generator".



starcraft: "I and every PS3 fanboy alive are waiting for Versus more than FFXIII.
Me since the games were revealed, the fanboys since E3."

Skeeuk: "playstation 3 is the ultimate in gaming acceleration"

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.

Objection!~

That is incorrect, no where does it say the ps3 brought 35% of their 1.5billion revenue. Next time read what it says before basing that assumption.

Damnit people pointed this out already.