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

megaman79 on 22 January 2009
Paperdiego said:
with that kind of money why does nintendo only stay a game company??
you would think that since they can run a company so well even when they are "losing" they would move into other industries and do the same.

computers anyone??

 

That would suck. Not only would you want to punch a hole through ur screen every time Mario says "Itsa your email", but you would probably not be able to get any porn.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

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Maynard_Tool on 22 January 2009

^ itsa your email would be pretty funny xD and i dont care about porn so... one sold xD



03/10/09 HUGE day in my life:

http://www.vgchartz.com/forum/thread.php?id=63437&page=1

Jo21 on 22 January 2009
outlawauron said:
Very cool. Sony seems to be very high revenue but with very high costs.

their stuff its high priced for a reason it seems, high revenue and not so big profits.



Impulsivity on 22 January 2009
outlawauron said:
Very cool. Sony seems to be very high revenue but with very high costs.

   That is more or less right (and not just on game consoles, their TVs are at the high end, their camcorders are at the high end ect).  They are in almost every segment either the premium brand or one of the premium brands (with the exception of specialty markets like speakers where the true premium brands cost tens of thousands of dollars).  Sony makes less then they could on their consoles or other individual segments to drive business to multiple Sony divisions.  Sony would rather make 25% less off the Playstation if they can get you to buy a much more expensive Bravia TV or some Blu Ray disks.

 

   They normally are able to turn their high margin items into sustainable profits, it just has broken down lately because people who are worried about losing their job aren't going to buy a 4000 dollar Bravia HDTV.

 




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Dianko on 22 January 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.

We'll have a decent idea on Xbox 360 profitibality if MS chooses to mention it specifically (if it's been doing good). But in regards to EDD, I was under the impression it was always one of the money losers, since most of the loss comes from R&D of new products and marketing them. I doubt PC game sales and peripheral sales can make up for the massive losses the Zune must be racking up.

 



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Galaki on 22 January 2009

¥90,349,000,000
¥226,024,000,000
¥487,220,000,000

Doubling every year.
Should we expect doubling for '09?



Pre-order limited edition Blue Slime Condoms

Viper1 on 22 January 2009
Paperdiego said:
with that kind of money why does nintendo only stay a game company??
you would think that since they can run a company so well even when they are "losing" they would move into other industries and do the same.

computers anyone??

 

Nintendo is actually over 100 years old.  Their main income was hanafuda playing cards but they also dealt in love hotels (I'm nto kidding), a cab company, a TV network, rice and some other ventures.

Never once in all those 100+ years have they posted a loss (they've only had one negative quarter ever and it was solely because of the exchange rate).

Now they focus almost exclusively on video games (they still own the Seattle Mariners baseball club) and as you can see has been highly successful for them.  Better to stick with what works than to diversify and lose continuity and cohesion.

 



The rEVOLution is not being televised

Bitmap Frogs on 22 January 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.

 

Ah yes... I knew I could count on you to post that. You have no basis whatsoever to state such thing, yet you always do it, every 3 months like a clockwork. Sometimes I do wonder how it feels to live in a land of fantasy where MS is just a lossy, poorly managed company while Sony is the world's example of shining collaboration between research and business triumph.





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).

DKII on 22 January 2009

So with the PS3, Sony has pissed away not only all the profit they ever made off PS2, but also almost 1/3 of what they made on PS1.

Also interesting to see they made about 50% more during the PS1 years than during the PS2 years.



Viper1 on 22 January 2009

Impulsivity, the $1 billion charge off is paid. That money is no longer occurring on their balance sheets. That's what a one time charge means. It affects the balance sheet for that one quarter, that's it.



The rEVOLution is not being televised