Xbox and Nintendo make more profit than Playstation off less revenue

MeachTheMonster

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Q On the other side we have Sony with PS5 and a very analogous hardware subsidy. Sony's gaming P&L runs at lower GM and AM percentage margins than our gaming business, even though they have 2 times the console installed base.

93375_31_xbox-profits-revealed-in-new-ftc-leak.png
 

MeachTheMonster

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This most likely explains why Jim Ryan wants to pivot to GaaS because revenue is front-loaded, and not much after the first 3 months
They spend LOTS of money on exclusives and exclusive deals to keep their market position but they just don’t bring in lots of money.

They need GAAS, PC, Mobile money just as much as xbox at this point.

They are in perpetual second place in stagnant and even shrinking market.
 

MeachTheMonster

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This is because Playstation itself is paying for the Bungie acquisition they’ve already stated this, while microsoft pays for the acquisitions for xbox division. They also reinvested money back into game development.


BWDxfu3.jpg
naw don’t work like that, and the bungie purchase was well before this data.
 

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They spend LOTS of money on exclusives and exclusive deals to keep their market position but they just don’t bring in lots of money.

They need GAAS, PC, Mobile money just as much as xbox at this point.

They are in perpetual second place in stagnant and even shrinking market.
It makes sense to do those deals because those games fill gaps between first party games. Plus, more console sales = a larger install base, which could potentially generate a lot of revenue based on store purchases and MTX for live service games.

The scary thing about the graph is if Nintendo ever discovers online play to generate mtx they will be a distant 1st place from the competition.
 

MeachTheMonster

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No it wasn’t, that was reported in their last annual fiscal report. It’s something they are continually paying off :skip:

You don’t even know what you’re reading
The bungie purchase was only 3.6 bill.

If they are cutting it up over multiple quarters then it’s not having as significant effect on profit as you are making it out to have.

Sony themselves cited higher dev costs and lower game sales as the reason for the decline.

It was testified in court that xbox makes more money on less revenue.

According to y’all on this site xbox makes no money, microsoft is just throwing money away.

Seems outside fanboy rhetoric the industry looks very different :ehh:
 

Gizmo_Duck

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Everyone spends money on game dev.

Sony spends a lot more, and they make less return on that spending than nintendo and microsoft.

Xbox’s spending is hidden behind microsoft not their xbox division, they’re accounting is also different with revenue also
 
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