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Forums - Sales Discussion - Profit Numbers: Nintendo, Sony (Game Segment) and Microsoft (EDD Segment)

liquidninja on 18 March 2009

*update*

Changed Sega's 1993 - 1999 figures to use Sega Annual reports found on Internet Archive.

Thanks to BKK2 for finding them aswell.



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sethnintendo on 18 March 2009
Globox82 said:
Rhonin the wizard said:
Globox82 said:
In a long run PS3 will make sh1t load of money to Sony. Why? Well Blu Ray, Last time they didn't get much money from DVD sales, but with Blue ray it is different story. Not only this gen but when next gen both MS and Nintendo adopt Bluray in next gen systems( you know they will) they will pay licence fee to Sony for every disk/game sold.
Cell tech will be used in next PS, so even if it looks bad in a long run it is smart move. Just like in poker, long run is what counts.
Props to Nintendo, they know how to make money and stay in biz.
Ms? Well someone has to much money...

Sony isn't the only company that gets licencing fess from Blu-ray. And Nintendo will make its own format, like it did for the GameCube and Wii.

 

 Yes i know, but Sony takes biggest cut, i think it was 25%.

Ninendo will adopt Blu ray, but it is complicated to explain and don't have time to write about it now.

 

I would be willing to make a VG bet on that.  Nintendo would never care to use Blu-ray.  They can easily make their own format that holds more capacity.  They are soley in the game business.  If they cared so much about people watching movies on their video game systems then they would have the Wii be able to play DVDs without Homebrew Channel.  Nintendo doesn't think like Sony or Microsoft and that is why they make more money (comparing game divisions). 

 

Nice thread!



bobbo19 on 18 March 2009
lapsed_gamer said:
What I find incredible is that Nintendo posted profits higher than Playstation in all years other than 2003 despite "losing" the generation.

 

 i concur



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XanderZane on 18 March 2009

Curious as to where you are pulling these numbers from.



__________________________________________

'gaming till I'm gone'

XanderZane on 18 March 2009
Impulsivity said:

One issue with the MS one is that it takes into account far more then just the Xbox. Included in the EDD segment are things that are actually profitable such as the microsoft branded keyboards and mice as well as PC games made by microsoft studios such as Ensemble. They purposely obscure the Xbox revenue by including it with many other devices because it is almost certainly still losing money (particularly with the ongoing RROD repair cost allowance of over a billion). Even things as far from gaming as Windows Mobile phone licensing is included in that number. Given that all the other areas turned a profit before teh Xbox brought the division into loss territory its almost certain that the xbox is at best breaking even allowing the other more profitable divisions to keep the segment in the black.

Maybe the Xbox division ekked out a narrow profit last year, but I doubt it. Sony on the other hand breaks out all their divisions quite extensively so whatever is made/lost on the PS systems is completely contained accurately and not obscured by PS systems being bundled in with TVs or whatever.

As to Sony I don't think they look at the PS as their main money maker (as Nintendo has to, since they don't make anything else) and partially use the PS as a vehicle to push other Sony products such as Blu Ray, HDTVs, Recievers, speakers ect, ect. Even with the PS3 losing money the past few years Sony posted its first loss in almost 2 decades this past year, Sony as a whole has been very profitable for a long time.

Microsoft has been profiting on their XBox 360 for almost 2 years not. Why do you think 2008 shows a profit? They did lost $5 billion on the XBox, but Sony has lossed more then that with the PS3. Sony is also using their other divisions like electronics and movie to compensate for all their PS3 losses. This is the only reason you see profits in Sony's column. Their numbers are NOT Gaming Division only. They lossed billions with the PS2 their first 2yrs as well. So these numbers are probably not very accurate.



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SuperDave on 18 March 2009

I'm sure it's been mentioned already, but I find it very impressive that Nintendo put up the best numbers(except '03) even during the n64 and GC period(s) where they ended up in last place.

They certainly know how to make profit in this industry.



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Procrastinato on 18 March 2009
XanderZane said:

(A) Microsoft has been profiting on their XBox 360 for almost 2 years not. Why do you think 2008 shows a profit? They did lost $5 billion on the XBox, but (B)Sony has lossed more then that with the PS3. (C)Sony is also using their other divisions like electronics and movie to compensate for all their PS3 losses. This is the only reason you see profits in Sony's column. Their numbers are NOT Gaming Division only. They lossed billions with the PS2 their first 2yrs as well. So these numbers are probably not very accurate.

(A) Um, red until the last quarter is profit for 2 years?  Looks like I need to rethink my investments.

(B) Awesome.  This made me lol, and tipped me off that your ridiculous comments might be sarcasm.

(C) Using their electronics division to compensate for PS3 losses?  Lol, awesome.

 

This is sarcasm, right?  The scary thing is that some people would actually believe the bolded comments (I assume "almost 2 years not" means "almost 2 years now"... although it would be funny if you intended the typo), which is sad.

 



 

celine on 18 March 2009

Good job Liquidninja.



 “In the entertainment business, there are only heaven and hell, and nothing in between and as soon as our customers bore of our products, we will crash.”  Hiroshi Yamauchi

TAG:  Like a Yamauchi pimp slap delivered by Il Maelstrom; serving it up with style.

justinian on 18 March 2009

Great info. Thanks for that. As always fanboys will see differerent from what the chart represent but that can't be helped.

Overall Nintendo is by MILES the greatest earner. That's undesputable.

Microsoft has a LOT of money to recuperate regardless of their "profits" now, maybe they should borrow some from Nintendo. Competion with sony is costing them dearly as their "profit" marging is being severely cut by selling their console so cheap. I am sure another $20 on the x360 current price won't hurt sales and bring in more revenue.

Sony really did not do very well at all when they where the Kings of the consoles.

You have to credit nintendo. The cold war between sony are MS are costing each a fortune while Nintendo is simply keeping out of it and raking it the cash.



Bitmap Frogs on 19 March 2009
Alby_da_Wolf said:
Bitmap Frogs said:
Alby_da_Wolf said:

Very rough calculation: if PS3 is breaking even at $400, subtracting HDD cost, cost difference between Cell and Xenon, cost difference between BD and DVD, and all other smaller differences, do you think we get a sum smaller than $200? BD drives are quite cheap now, an 80GB HDD is cheap too, Cell has already been produced in more than 20 million units, while Xenon almost 30 million, and it's simpler, so we know is cheaper than Cell, but not enormously cheaper. OTOH the price difference between Pro and Arcade is high enough, compared to the additional equipment, to make Pro break even or even profit a little bit.

 

 

Your post is full of misconceptions.

You don't know how much all those components in the ps3 cost. Therefore you can't take that as a basis for your calculation.

In fact, you are ignoring associated costs, manufacturing costs, yields, and other unknown/unforeseen costs.

I call your whole post uninformed speculation, and I am being generous. You basically want to believe the Arcade is losing money.

Don't you know that the same thing can be said about opposed hypotheses too?

 

 

It's not me who's attempting to figure out costs on something comparing apples to oranges.

 





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