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

Procrastinato said:
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.

 

Actually that one is true.... they have lost $3 billion in the last couple of years, but that happens to include lots of PS2 profit, and PSP has been profitable for those years at least.... it is also possible that the poor year previously (only $70 ish million made) is due in part to the PS3.

 



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By the way, we'll we ever have the chart adjusted for inflation?





Current-gen game collection uploaded on the profile, full of win and good games; also most of my PC games. Lucasfilm Games/LucasArts 1982-2008 (Requiescat In Pace).

Bitmap Frogs said:
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.

 

I never claimed to pass my rough calculation off as precise, but I don't think saying  [(Cell - Xenon) + (GPU PS3 - GPU XB360) + (BD-DVD) + 80GB HDD + (other components cost difference)] < $200 is totally unreasonable.

If you are implying that we really can't figure out for sure whether XB360 is profiting or losing, I can agree, we can't indeed, as (Edit) I based my rough estimate only on cost difference, so if PS3 cost is down enough to make it profitable at $400, chances are that $200 XB360 arcade is too. If on the contrary you are saying for sure that my estimate is totally wrong, well, do a correct estimate that prove mine wrong (to prove me wrong you have to prove wrong the inequality above and prove that PS3 is breaking even or profiting). If my reasonment is only partially wrong, or simply not demonstrable, then the answer is unknown.



Stwike him, Centuwion. Stwike him vewy wuffly! (Pontius Pilate, "Life of Brian")
A fart without stink is like a sky without stars.
TGS, Third Grade Shooter: brand new genre invented by Kevin Butler exclusively for Natal WiiToo Kinect. PEW! PEW-PEW-PEW! 
 


Alby_da_Wolf said:
Bitmap Frogs said:

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

 

I never claimed to pass my rough calculation off as precise, but I don't think saying  [(Cell - Xenon) + (GPU PS3 - GPU XB360) + (BD-DVD) + 80GB HDD + (other components cost difference)] < $200 is totally unreasonable.

If you are implying that we really can't figure out for sure whether XB360 is profiting or losing, I can agree, we can't indeed, as (Edit) I based my rough estimate only on cost difference, so if PS3 cost is down enough to make it profitable at $400, chances are that $200 XB360 arcade is too. If on the contrary you are saying for sure that my estimate is totally wrong, well, do a correct estimate that prove mine wrong (to prove me wrong you have to prove wrong the inequality above and prove that PS3 is breaking even or profiting). If my reasonment is only partially wrong, or simply not demonstrable, then the answer is unknown.

 

You don't know manufacturing, packaging costs, royalties, yields, etc...  you just assume they are equal and go from there. 

Your estimation can't be right unless it happens by chance. I don't need to make a pig fly to show that you can't get a pig to fly.

So since we've resolved that we can't estimate the cost on the machines themselves (as you say, it's unkown), it's back to square one.

Square one is Sony Gaming division losing money with two healthy endeavours (psp, ps2) so overall the ps3 business must be losing money. As for Microsoft, we know the division is turning a profit, but wether the console itself is sold at a loss or not can't be known since it's obscured by the other projects.

As a result, we know the ps3 is a money-losing enterprise so far, but we don't know how the 360 is doing.

Shall we proceed?





Current-gen game collection uploaded on the profile, full of win and good games; also most of my PC games. Lucasfilm Games/LucasArts 1982-2008 (Requiescat In Pace).

Bitmap Frogs said:
By the way, we'll we ever have the chart adjusted for inflation?

Well, you have to take into account the different inflation rates of the ¥ and $ so I'm not so sure how easy that would be to do. For ¥ only it shouldn't be too difficult though.



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BKK2 said:
Bitmap Frogs said:
By the way, we'll we ever have the chart adjusted for inflation?

Well, you have to take into account the different inflation rates of the ¥ and $ so I'm not so sure how easy that would be to do. For ¥ only it shouldn't be too difficult though.

 

Yeah I know but having the chart in current dollars would be extra-sweet.





Current-gen game collection uploaded on the profile, full of win and good games; also most of my PC games. Lucasfilm Games/LucasArts 1982-2008 (Requiescat In Pace).

Inflation:

With the older figures there's a significant the difference in earnings when you take in to consideration what that money could buy back then. But still I don't want to make my original post even larger (at least not for this kind of meticulous data) so this is where I'll put this chart. This chart applies the Buying Power of a Dollar retrieved from CPI Inflation Calculator to the data in the above "Comparison US Dollars" chart.

 

 

FY End
Sony Game Segment
Nintendo
Sega
Microsoft EDD
Buying Power
1981:
1982:
1983:
1984:
1985:
1986:
1987:
1988:
1989:
1990:
1991:
1992:
1993:
1994:
1995:
1996:
1997:
1998:
1999:
2000:
2001:
2002:
2003:
2004:
2005:
2006:
2007:
2008:
??
-$126,213,498
$670,917,654
$1,240,457,088
$1,363,484,268
$852,616,750
-$555,754,896
$783,695,997
$1,063,613,299
$671,346,883
$438,555,396
$81,290,790
-$2,028,476,040
-$1,082,048,517
$46,596,272
$210,765,368
$179,391,326
$144,956,422
$163,939,499
$4,372,535,73
$564,868,656
$661,196,572
$827,288,834
$726,336,460
$1,531,838,380
$1,675,368,918
$1,880,345,913
$1,376,286,454
$1,330,433,496
$1,015,850,619
$765,512,985
$1,355,203,824
$1,560,823,573
$1,607,265,969
$920,825,784
$1,126,191,421
$945,282,980
$1,069,765,995
$1,132,929,693
$839,568,082
$1,973,460,748
$4,235,013,684
??
??
??
??
??
??
??
??

$99,650,250
$145,524,600
$192,922,080
$442,852,800
$738,228,414
$618,334,288
$437,261,529
$418,489,956
$367,290,514
$145,403,856
$20,799,386
-$447,215,134
-$565,539,696







-$1,340,700,000
-$1,999,200,000
-$1,021,880,000
-$1,078,700,000
-$1,132,320,000
-$505,760,000
-$1,395,450,000
-$2,056,320,000
$264,330,000
2.33
2.20
2.13
2.04
1.97
1.94
1.87
1.79
1.71
1.62
1.56
1.51
1.47
1.43
1.39
1.35
1.32
1.30
1.27
1.23
1.20
1.18
1.15
1.12
1.09
1.05
1.02
0.99
Total:
$3,373,485,174 $30,304,561,500 $2,614,002,843 -$10,266,000,000

Note: Only the buying power for the actual year is taken into calculations not the fiscal year.

Note: These are the rate as of March 20, 2009



hey look who is in the black still, besides nintendo lol. but sony should post some black for 2009, at least i expect it to go that way. even if its only one buck xD

and wow negative nine trillion for the xbox? didn't think it was that high, at least profit is starting to roll in. maybe they can cut that down 1/3 by the end of this gen?

 

edit: lol sega....silly gooses



@Bitmap Frogs:
Obviously we can't be sure but the possible solution that XB360 overall is profiting with only Arcade losing and Pro, Elite, XBL, first party games and third party royalties, accessories, whatever else profiting, although not demonstrable, is more likely and fitting in the current scenario and compatible with PS3 overall losing during the FY ending now and just breaking even in the last few months. Otherwise, if we suppose that XB 360 Arcade is CURRENTLY profiting and PS3 is losing, and notice that I'm referring to the current cost, not the average of this FY, it would mean that their CURRENT total costs difference is greater than $200. I find it very unlikely, you don't agree and I can agree that we can't be sure, but at least considering it unlikely is not unreasonable (just think what we can buy at retail price for $200, and we don't get bulk price nor we have the bargaining power of companies like MS, Sony and Nintendo).



Stwike him, Centuwion. Stwike him vewy wuffly! (Pontius Pilate, "Life of Brian")
A fart without stink is like a sky without stars.
TGS, Third Grade Shooter: brand new genre invented by Kevin Butler exclusively for Natal WiiToo Kinect. PEW! PEW-PEW-PEW! 
 


liquidninja said:

Inflation:

With the older figures there's a significant the difference in earnings when you take in to consideration what that money could buy back then. But still I don't want to make my original post even larger (at least not for this kind of meticulous data) so this is where I'll put this chart. This chart applies the Buying Power of a Dollar retrieved from CPI Inflation Calculator to the data in the above "Comparison US Dollars" chart.

 

 

FY End
Sony Game Segment
Nintendo
Sega
Microsoft EDD
Buying Power
1981:
1982:
1983:
1984:
1985:
1986:
1987:
1988:
1989:
1990:
1991:
1992:
1993:
1994:
1995:
1996:
1997:
1998:
1999:
2000:
2001:
2002:
2003:
2004:
2005:
2006:
2007:
2008:
??
-$126,213,498
$670,917,654
$1,240,457,088
$1,363,484,268
$852,616,750
-$555,754,896
$783,695,997
$1,063,613,299
$671,346,883
$438,555,396
$81,290,790
-$2,028,476,040
-$1,082,048,517
$46,596,272
$210,765,368
$179,391,326
$144,956,422
$163,939,499
$4,372,535,73
$564,868,656
$661,196,572
$827,288,834
$726,336,460
$1,531,838,380
$1,675,368,918
$1,880,345,913
$1,376,286,454
$1,330,433,496
$1,015,850,619
$765,512,985
$1,355,203,824
$1,560,823,573
$1,607,265,969
$920,825,784
$1,126,191,421
$945,282,980
$1,069,765,995
$1,132,929,693
$839,568,082
$1,973,460,748
$4,235,013,684
??
??
??
??
??
??
??
??

$99,650,250
$145,524,600
$192,922,080
$442,852,800
$738,228,414
$618,334,288
$437,261,529
$418,489,956
$367,290,514
$145,403,856
$20,799,386
-$447,215,134
-$565,539,696







-$1,340,700,000
-$1,999,200,000
-$1,021,880,000
-$1,078,700,000
-$1,132,320,000
-$505,760,000
-$1,395,450,000
-$2,056,320,000
$264,330,000
2.33
2.20
2.13
2.04
1.97
1.94
1.87
1.79
1.71
1.62
1.56
1.51
1.47
1.43
1.39
1.35
1.32
1.30
1.27
1.23
1.20
1.18
1.15
1.12
1.09
1.05
1.02
0.99
Total:
$3,373,485,174 $30,304,561,500 $2,614,002,843 -$10,266,000,000

Note: Only the buying power for the actual year is taken into calculations not the fiscal year.

Note: These are the rate as of March 20, 2009

 

 

Thank you liquid ninja, this makes the chart way more relevant and easier to read for us all. 

It is mind-boggling nintendo is past 30 billion while MS is still 10 billion in the red. Really, Nintendo management is and always has been top brass. It is interesting that while MS is still 10 billion in the red, the ps3 so far has probably cost 4-5 billion to Sony. It makes it very clear why Nintendo didn't want to play the same game MS and Sony wanted to and in doing so they achieved success by innovation. Staggering.

@alby: whatever you want to believe. But you are ignoring a lot of data just to fit in your pre-conceptions about the issue at hand. For example, I don't hear you talking how the Fed's decision to print a trillion to buy US bonds will negatively affect the dollar/yen ratio and thus hurt japanese corporations even more.





Current-gen game collection uploaded on the profile, full of win and good games; also most of my PC games. Lucasfilm Games/LucasArts 1982-2008 (Requiescat In Pace).