Nintendo and Sony at LOSS , Microsoft MASSIVE PROFIT

PROFIT OR LOSS PER CONSOLE

Nintendo sells the Wii U at a loss(about $100 per console)

Sony sells the PS4 at a loss($60 loss per console)

Microsoft sells the Xbox One at a profit(28$ profit per console)

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FULL PROFIT OR LOSS FROM CONSOLE SALE(TOTAL)

So if we take loss or profit, and + consoles sold then:

Nintendo(5.5 million console) loss = $550 million loss

Sony(4.6 million console) loss = $276 million loss

Microsoft(3.2 million console) profit = $89,6 million profit

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COMPANY FREE CASH + PROFIT/LOSS(YEAR)

If we take a look how much money companies has left then:

Nintendo has free cash $11 billion($521.9 million loss - 12 months)

Sony has free cash $19 billion($5.5 billion loss- 12 months)

Microsoft has free cash$68 billion($ 15 billion profit- 12 months)

So, If Sony has such big loss like 5.5 billion a year(4 years more) then Sony would go bankrupt but now Sony earns some profit(at end of year). I guess PS4 sell per console gives profit about in 2-3 years.

Nintendo is losing money but not big loss. Nintendo has lowest free cash.

Microsoft has most free cash and earns massive profit(even some profit from Xbox One).

If anyone is wondering how hard is Apple to come at console market, well, it´s simple for them.

Apple has free cash $137 billion(41 billion profit - 12 months). So Apple could easily buy all game developers, exclusives.

So, i guess Apple is mostly likely enters into console war if Nintendo goes into 3rd party(IF THAT HAPPENS)

So guys, what you think right now? If Nintendo keeps losing money then it could be game over for them.

What future brings?

Different kind of prophet.

A link would be nice to all these nice figures.

@FreedomFreeLife: you forgot something

Oh sorry, it´s from forbes. You can check there out :)

You should write for fortune cookie companies.

op doesn't know about the razor and blades business model,

you see they sell the systems, often at a loss,

and recoup that loss with software,

since he is good at math,

he can add up sonys sales figures

http://www.gamespot.com/articles/9-7-million-ps4-games-sold-so-far-ps-plus-subscriptions-up-90-percent/1100-6416994/

at this point I think sony has recouped their losses on the system

not sure about Nintendo or Microsoft since they have yet to release those figures

Nintendo and Sony sell console at loss, software gives Sony some profit and same with Nintendo

Microsoft sell console at profit, software gives also extra profit.

But again:

Nintendo has free cash $11 billion($521.9 million loss - 12 months)

Sony has free cash $19 billion($5.5 billion loss - 12 months)

Microsoft has free cash$68 billion($ 15 billion profit - 12 months)

Total Nintendo and Sony are losing money meanwhile Microsoft earns profit. Funny is that Microsoft earned more profit with a year than Nintendo has free cash a whole life.

1 year Microsoft profit > Total Nintendo worth.

I think that Nintendo will do better in the coming years,

Microsoft is getting attacked at all their fronts,

first was the phones,

than the consoles,

and this year will be the os,

it is only going to go down for them,

they will have 1 year to profit,

but I think this year is the hammer is going to fall,

even more so since pc's are being edged out (my reference being valves focus on Linux and intel, NVidia, amd joining them)

so who cares if ms makes a bit of profit,

they are going to slash those prices in order to remain competitive with sony,

its just a matter of when,

and how much of a loss they will sell the system at

No way in hell Microsoft made 15 BILLION with the gaming division. Only reason they still around is their monopoly on PC OS. Every other endeavor they take fails. Phones tablets xbox

Xbox was losing money for 10 years straight

Mr. Analysis... you forgot one major point. Many times companies are willingly selling at profit because with each software sold on the console they make more money. So what really matters is the installed fanbase.

Try again next time...

lol FreedomFromFacts doesn't know that it also has to cover losses from R&D, marketing, that $400 million NFL deal, damage control and future emergency price cuts.

Might want to hold off on that victory lap, lems.

While I don't really agree with the numbers (you forgot the retailers profit for selling a console), I do share the view that Sony is doomed.

Well if Microsoft is generating more income then it would mean good news as they can invest and produce more better games.

No links. Most of the projections I've read have MS games division at a loss.

You forgot to mention the fact that Microsoft makes up about 90% of their annual profits from things other than the xbox.

They do afterall own office and windows products which are sold around the world. But most of their money comes from proprietary back end software no one really ever thinks about like database management systems like Microsoft access which rakes them in billions a year through licensure. Small business server earns billions. Biz talk server. Visual studio. SQL server. System center configuration master. Exchange. Silverlight. And dozens of other back end software systems they own. That's where they make all of their money.

The xbox probably brings in maybe 10% at the most of their annual income. So that's really not much to be proud of or cheer about. That would be like cheering at mcdonalds for making billions a year and saying its all thanks to their south west chicken salad because in reality youre wrong.

Sony will get about $10 for every game they sell through licensing fees, though. Considering multiplatform titles have and should continue to sell better on Ps4 hardware, I'm sure Sony will be fine in the end.

i can also make bs and post it without links.

We all know PS5 is a go, locked and loaded, better strap one on TC, its gonna be pedal to the muther fvcking metal.

SCEA president and CEO Jack Tretton added: “Our goal with PlayStation 5 is to deliver inspiring and creative play experiences that gamers have never seen before. The level of enthusiasm we’re seeing from GameStop customers demonstrates how the promise of PS4 is resonating with gamers, and we’re looking forward to unveiling more about the new platform in the coming months.Push the boundaries of play, Working with some of the most creative minds in the industry, PlayStation®4 delivers breathtaking and unique gaming experience”It will offer a barn bursting amount of world class, high scoring exclusives, just like the PS3. Day fvcking 1. Speaking of the PS3, I'd like to thank Sony corporation with a special shout out to Ken Kutaragi

Through your hard work and dedication, you have given us a system of the ages and console of the generation. A value that only you could imagine has unfolded before our very eyes and blossomed into something very beautiful.So, you see, we took small steps to success all along that hike. Together, they added up to hundreds of thousands of small steps. But we might have chosen not to take the first step. We might have stopped at any point along the way. That would have meant that we would not have gotten to our destination.

There were also obstacles along the way. But with each small step they were overcome.

There were frustrations, fears and uncertainties. But with each small step they were crushed.

There was hardship and danger, but with each small step and focus on the desired destination it was conquered.So you see, success is no mystery.

Because, as the Chinese philosopher Lao-tzu said: A journey of a thousand miles must begin with a single step.

It takes only one small step to succeed and you have done it Ken. Bravo.

It goes without saying that a thanks is in order for Kazuo Hirai

You have taken Ken's vision and molded into something beutfitul. All the world's your stage. And all the men and women merely players: A non-doer is very often a critic-that is, someone who sits back and watches doers, and then waxes philosophically about how the doers are doing. It's easy to be a critic, but not you Kaz, no being a doer requires effort, risk, and change and you have done a nobel job. Bravo!

And last but certainly not least I'd like to thank

Jack Tretton, your loyalty, perseverance and dedication has helped Sony reach it's goals and making Sony the #1 console of choice.That is real freedom. That is being educated, and understanding how to think. The alternative is unconsciousness, the default setting, the rat race, the constant gnawing sense of having had, and lost, some infinite thing.You have dared to go where others have been scared to go Jack, Thank you and God bless Sony USA.

Thank you Sony

I imagine the only reason MS is in the green on XBOX is due to XBOX LIVE gold. I imagine PSN will bring sony alot more profit this year,

I think that Microsoft is going to be fine for this generation. They will probably win the USA and have sizeable market share in countries in which population has higher disposable income (with the exception of Japan). I have no doubt that the PS4 will win the global console sales. However, the real profit generator of the console is the games. I have read somewhere that multiplat games are selling better in the USA on the Xbox One. Also, the fact that the Xbox is now the "entertainment hub" and is always on will keep the Xbox from becoming second thought of the owner. For example, I own both the PS3 and 360 but got bored with gaming (life happens) and did not buy any game for those consoles since 2011.

Now, I find that I am playing games on the Xbox One a lot more often. I now spend 3-4 hours a day playing Forza and/or BF4 (my wife is not very happy with that). I guess that the fact that the Xbox is always on, the ease of getting in & out of games, the controller is always around, and no need to switch disc if games were bought digitally contribute a lot to my gaming frequency. I am now looking forward to several new game releases. There must be a substantial number of "casual" console owners like me around. I think that Microsoft is on to something here in generating higher revenue from Xbox console owners. (Same model as Apple - Google has sold a lot more phones than the iPhone but iTune is generating substantially more revenue than Google Play).

P.S., please no hatred or name calling. I am trying to have a reasonable discussion here. I am not saying that MSFT will beat Sony. I am just saying that the Xbox will probably be profitable for Microsoft.

@Heil68:

A good and well written post, thank you Heil68... and thank you Sony. Your dedication is our inspiration!

Last time I checked MS gaming division was in the red. I don't know where OP is getting these "profits" from considering talk a few months ago about MS canning the division because of how much money they are losing from it.

If you had read my second post then you would see that. Yes, Microsoft earns profit and A LOT

So what exactly is the TCs argument that I'm getting a deal with the PS4 and Wii U and getting ripped off with the Xbone which is the most expensive?

Sounds about right.............

Put in a link or it'll get locked ;)

@I_can_haz:

Microsofts entertainment division flushes tons of money. The way they hide it is through their Android royalties which are 2 billion a year.

there's a lot more to take into consideration on this end, such as advertising costs, game development costs, and revenue factors such as first party game sales, third party game sales (as I think the companies get some cut of that), subscription programs like PS+ and XBLG, and again costs like MS buying exclusivity and financing third parties to make exclusives, the building of their online servers for MS's cloud network and Sony's Gaikai network

then there's still MS and Sony's revenues from last gen stuff like Xbox 360 and PS3 sales, sales of games, revenues from XBLG and PS+, and costs that go into all of that stuff, there's no easy formula for declaring one more financially well designed at the moment

probably safe to say both MS and Sony are going to incurring a lot of financial losses early on, we'll probably have a better understanding of how these companies stand (in general) in a couple weeks when their quarterly reports are released... I've a feeling Sony's will release a week later than it should as that's become the trend since the company went to hell

I I see a lot of numbers but no links. How can we discuss this with no type of verification of these numbers?

Here is link:

http://www.forbes.com/

as far as this quarter and fiscal year goes MS will do better simply because everything the company does outside of gaming will generate phenomenal profits, Nintendo will probably break even more or less (the 3DS is selling great even if the Wii U isn't), and Sony will probably continue to lose money or maybe squeeze out a marginal profit at the expense of dumping assets

Well Microsoft is richest and they earn massive profit of everything total.

Sony lost a lot of money but now they finally started to earn something. Yes, PS4 is selling as loss but buying a games turns PS4 sold loss consoles into profit(small profit). I think about next year cost of PS4(making cost) is cheaper which means it goes to profit. This means every PS4 sold gives small profit. 2-3 years later games, PSPlus and consoles gives big profit.

Well Nintendo is smaller. They playing safe game. They can´t make Wii U cheaper because their gamepad alone costs more than 100 dollars and making it won´t go any cheaper. So yeah. Nintendo has some loss but i guess they doing fine.

In short, Microsoft is richest and earns massive profit(low profit from XOne)

Sony is losing money but now they started to earn some profit.

Nintendo is losing money.

a link to your imagination,

come on put a proper link,

you know to the article

Was watching Bloomberg tv earlier, and they were going to do a piece on Iwata, and how he is in hot water for missing projections by such a large margin. Hope they can make something for themselves this gen. But PS4 will sell most, with X1 a respectable sales total second I believe.

You do realize this profit isn't towards Xbox alone or PS4 alone Sony and MS own a lot of other departments, MS has OS, Software, R&D Business they're not just for Xbox if you believe all that 68 Billion is going towards Xbox you're fooling yourself. it's about 1/4 if even.

OK gave plenty of time for a link.