Activision Explanation

Ok so the owner of Activison says he may have to drop support for the PS3 and all of the Cows say that would be a dumb move due to the 20 million install base, and that does seem to be a reasonable argument until you look at the sales. Activision published games have earned at max worldwide lifetime software sales for PS3 is approximately 675 million. The owner said he had to pay nearly 500 million in royalties for LAST YEAR alone, so as you can see he has good reason for what he has said imo.

Ok so the owner of Activison says he may have to drop support for the PS3 and all of the Cows say that would be a dumb move due to the 20 million install base, and that does seem to be a reasonable argument until you look at the sales. Activision published games have earned at max worldwide lifetime software sales for PS3 is approximately 675 million. The owner said he had to pay nearly 500 million in royalties for LAST YEAR alone, so as you can see he has good reason for what he has said imo.

nosedive7

I could provide links but its not necessary, just go to vgchartz or any other software charting site, look up PS3 worldwide lifetime sales of Activision published titles and multiply it times 50 which is an optimistic estimate. The fact of the royalties is in the news article that prompted the discussion in the first place.

All console companies take a significant chunk from game sales in licensing fees, people forget that when throwing figures around.

However even I doubt Sony would take percentages like that.

I could provide links but its not necessary, just go to vgchartz or any other software charting site, look up PS3 worldwide lifetime sales of Activision published titles and multiply it times 50 which is an optimistic estimate. The fact of the royalties is in the news article that prompted the discussion in the first place.

nosedive7

No, give me a link to a none garbage site like VGchartz is and show me the claim with an equation that you didn't come up with yourself. The kind of numbers you are throwing around make no sense at all.

Link for proof of paid loyalties from Activision to Sony.

http://buisness.timesonline.co.uk/tol/buisness/industry_sectors/media/arcticle6531367.ece

How does it not make sense? Total lifetime worldwide Activision published sales on PS3 are approximately 13.55 million. Multiply that by an optimistic 50 dollars and you get 675 million total lifetime sales.

Link for proof of paid loyalties from Activision to Sony.

http://buisness.timesonline.co.uk/tol/buisness/industry_sectors/media/arcticle6531367.ece

nosedive7

Hmm not sure why the link isn't working. If you won't take my word for it just go to Kotaku find the PS3 article at the bottom of the page, take the link at the bottom to the orig. PS3 Activision article and at the bottom of that is the link I gave.

[QUOTE="nosedive7"]

Link for proof of paid loyalties from Activision to Sony.

http://buisness.timesonline.co.uk/tol/buisness/industry_sectors/media/arcticle6531367.ece

JangoWuzHere

I was just about to post the same thing.

Hmm not sure why the link isn't working. If you won't take my word for it just go to Kotaku find the PS3 article at the bottom of the page, take the link at the bottom to the orig. PS3 Activision article and at the bottom of that is the link I gave.

nosedive7

Kotaku has almost less credibility than VGchartz :|. Anyway, searching shouldn't be my concern so you give us the link to your point. Preferrably, one that works this time.

Guys the link is just to give the royalties that everyone knows is in fact 500 million a year no reason to focus on something that is an established fact.

Guys the link is just to give the royalties that everyone knows is in fact 500 million a year no reason to focus on something that is an established fact.

nosedive7

Not a fact until I see a link man, sorry.

And if anyone could find software sales numbers that disprove my point I would be happy to acknowledge them, however in this case where we are talking of approximate software sales I don't see why vgchartz can't be use.

I really hope PS3 will come back with it's upcoming price cut but if it doesn't then so what i'll just get a 360 it's cheap even though it don't have games that interest me and paying for online/rrod is a huge turn off

dang I don't want a 360 common sony have that price cut

[QUOTE="JangoWuzHere"]

[QUOTE="nosedive7"]

Link for proof of paid loyalties from Activision to Sony.

http://buisness.timesonline.co.uk/tol/buisness/industry_sectors/media/arcticle6531367.ece

ActicEdge

I was just about to post the same thing.

Found the correct link he was trying to use.

http://business.timesonline.co.uk/tol/business/industry_sectors/media/article6531367.ece

Guys the link is just to give the royalties that everyone knows is in fact 500 million a year no reason to focus on something that is an established fact.

nosedive7

Why would Sony take 75% of the revenue in licensing fees?

Ok so the owner of Activison says he may have to drop support for the PS3 and all of the Cows say that would be a dumb move due to the 20 million install base, and that does seem to be a reasonable argument until you look at the sales. Activision published games have earned at max worldwide lifetime software sales for PS3 is approximately 675 million. The owner said he had to pay nearly 500 million in royalties for LAST YEAR alone, so as you can see he has good reason for what he has said imo.

nosedive7

Maybe they should stop giving timed exclusive DLC to the other system if they want their games to sell better. -_-TheGrat1

Aight, so SOMEONE ELSE, (thanks to the guy who did it) posted the link you wouldn't. Now, you have a minimal amount of credibilty but none the less you have some. Now, explain why a price cut would increase the gains for SOny and Activision.

[QUOTE="TheGrat1"]Maybe they should stop giving timed exclusive DLC to the other system if they want their games to sell better. -_-JangoWuzHere

"unlike Nintendo, which practically reinvented gaming with the Wii,"

Do business people seriously believe this? Nintendo has done a great job at fooling people who don't game.

[QUOTE="TheGrat1"]Maybe they should stop giving timed exclusive DLC to the other system if they want their games to sell better. -_-JangoWuzHere

They'll make more money off of PS3 owners, obviously.

Activision sales

http://vgchartz.com/worldtotals.php?name=&console=PS3&publisher=14&genre=&minSales=0&results=50&sort=Total

I can't find any other sources that track total software sales if anyone knows of one feel free to share.

Also TC, you forget that the PS3 is not the only Sony console that activision make games for so ofcourse Sony will collect more royalty fees.

This isn't supposed to be 100% accurate its just to give an idea of where the guy was comming from when he made his comments.

"unlike Nintendo, which practically reinvented gaming with the Wii,"

Do business people seriously believe this? Nintendo has done a great job at fooling people who don't game.

hakanakumono

I could provide links but its not necessary, just go to vgchartz or any other software charting site, look up PS3 worldwide lifetime sales of Activision published titles and multiply it times 50 which is an optimistic estimate. The fact of the royalties is in the news article that prompted the discussion in the first place.

nosedive7

:|

vgchartz...

[QUOTE="SpruceCaboose"]Ok, that is one link, now a link to claims of sales gained on PS3 would be needed.MarshalRambo

This was the only one I could find.

http://www.vgchartz.com/forum/thread.php?id=77436

Also TC, you forget that the PS3 is not the only Sony console that activision make games for so ofcourse Sony will collect more royalty fees.

Rockman999

You'r right spruce this wouldn't hold up in a board meeting, but it's just to give some indication where the guy is coming from, if you can come up with some better numbers feel free to share, otherwise I don't see whats wrong with going off the only data available and using 50x13.55 its the best I can do atm. If someone is a better accountant I would love to see some more accurate data.

You'r right spruce this wouldn't hold up in a board meeting, but it's just to give some indication where the guy is coming from, if you can come up with some better numbers feel free to share, otherwise I don't see whats wrong with going off the only data available and using 50x13.55 its the best I can do atm. If someone is a better accountant I would love to see some more accurate data.

nosedive7

Why would Sony take 75% of the profit in licensing fees?

hakanakumono

OT: I think it should be "Why would Sony take 75% of the revenue in licensing fees." Profits is total revenue after all costs are substracted. Sorry, I'm studying economy and it just got to me. :P

[QUOTE="hakanakumono"]

Why would Sony take 75% of the revenue in licensing fees?

dragonpuppy

OT: I think it should be "Why would Sony take 75% of the revenue in licensing fees." Profits is total revenue after all costs are substracted. Sorry, I'm studying economy and it just got to me. :P

You're right, I'll change it.

Ok same criteria for 360 and Wii

360-1.911 billion lifetime Activision sales

http://vgchartz.com/worldtotals.php?name=&console=X360&publisher=14&genre=&minSales=0&results=500&sort=Total

Wii-1.124 billion lifetime Activision sales

http://vgchartz.com/worldtotals.php?name=&console=Wii&publisher=14&genre=&minSales=0&results=500&sort=Total&gr_i_ni

PS3-677 million lifetime Activision sales

http://vgchartz.com/worldtotals.php?name=&console=PS3&publisher=14&genre=&minSales=0&results=500&sort=Total

Ok same criteria for 360 and Wii

360-1.911 billion lifetime Activision sales

http://vgchartz.com/worldtotals.php?name=&console=X360&publisher=14&genre=&minSales=0&results=500&sort=Total

Wii-1.124 billion lifetime Activision sales

http://vgchartz.com/worldtotals.php?name=&console=Wii&publisher=14&genre=&minSales=0&results=500&sort=Total&gr_i_ni

PS3-677 million lifetime Activision sales

http://vgchartz.com/worldtotals.php?name=&console=PS3&publisher=14&genre=&minSales=0&results=500&sort=Total

nosedive7

Point being they seem to sell alot more software on the other systems. So it's no surprise with development costs being what they are, they would like a similar return on PS3 investment.

Right maybe sony is talking profits, but chances are so is MS

and looking at the post with the sales figures, its pretty obvious that whatever activision is doing its not working for PS3 owners...

Maybe its their inferior COD games, maybe ps3 owners are not so bothered about guitar hero... But theyre not making the right games right now.

i would suggest you edit your post. every time you say "owner", put "CEO".

he's is not THE owner.

on topic: i think its mostly an attempt at getting sony to drop the price which i think is unlikely for the remainder of this year. i think price cuts tend to come in either august or early spring. not always or anything, but those are the most typical times.

Point being they seem to sell alot more software on the other systems. So it's no surprise with development costs being what they are, they would like a similar return on PS3 investment.

nosedive7

*Gasp* Systems with higher install bases sell more software?! :o Whodathunkit?

Edit: Post # 2700! :D