PS3 Outperforms 360 For EA

[QUOTE="ActicEdge"]

[QUOTE="SUD123456"]

No it doesn't. Period. End of story. Rev - Dev costs = Net Margin or Net Operating Profit.

Net Revenue is always BEFORE costs.

SUD123456

Are you an accountant out of curiousity? I'm normally use to calling it Gross profit (I tink its gross profit anyway) so I was like what when I read your explanation :P

Sure, you can call it gross profit too. In any case, you have Revenue - Direct Costs (or COGS)= (Margin, Operating Profit, Gross Profit....they all are variations on the same thing). Then you deduct indirect costs/overhead etc. Then depreciation, interest and taxes. And you end up with net income or net profit.

No I am not an accountant.

But I am probably your Dad's age. Over 20 years business experience, Senior corporate executive type. MBA. Many years of management consulting.

But none of that matters. I can read an income statement and I know how and where to look for these details. It is right there in black and white on EA's income statement.

Makes sense. I'm still learning about all the ins and outs of accounting if I ever deside to pursue it lol. I have a question for you though if you could answer it, is there anyway for the general public to find out things like how a company aplies their deprediation contra asset and the like? I never am able to find it in there statements.

[QUOTE="SUD123456"]

[QUOTE="ActicEdge"]

Are you an accountant out of curiousity? I'm normally use to calling it Gross profit (I tink its gross profit anyway) so I was like what when I read your explanation :P

ActicEdge

Sure, you can call it gross profit too. In any case, you have Revenue - Direct Costs (or COGS)= (Margin, Operating Profit, Gross Profit....they all are variations on the same thing). Then you deduct indirect costs/overhead etc. Then depreciation, interest and taxes. And you end up with net income or net profit.

No I am not an accountant.

But I am probably your Dad's age. Over 20 years business experience, Senior corporate executive type. MBA. Many years of management consulting.

But none of that matters. I can read an income statement and I know how and where to look for these details. It is right there in black and white on EA's income statement.

Makes sense. I'm still learning about all the ins and outs of accounting if I ever deside to pursue it lol. I have a question for you though if you could answer it, is there anyway for the general public to find out things like how a company aplies their deprediation contra asset and the like? I never am able to find it in there statements.

[QUOTE="ActicEdge"]

[QUOTE="SUD123456"]

Sure, you can call it gross profit too. In any case, you have Revenue - Direct Costs (or COGS)= (Margin, Operating Profit, Gross Profit....they all are variations on the same thing). Then you deduct indirect costs/overhead etc. Then depreciation, interest and taxes. And you end up with net income or net profit.

No I am not an accountant.

But I am probably your Dad's age. Over 20 years business experience, Senior corporate executive type. MBA. Many years of management consulting.

But none of that matters. I can read an income statement and I know how and where to look for these details. It is right there in black and white on EA's income statement.

themyth01

Makes sense. I'm still learning about all the ins and outs of accounting if I ever deside to pursue it lol. I have a question for you though if you could answer it, is there anyway for the general public to find out things like how a company aplies their deprediation contra asset and the like? I never am able to find it in there statements.

Right. So does the taxman. Generally the system has tax accepted norms & schedules for depreciating different classes of assets. So, there may just be generalized statements about depreciating IAW GAAP...blah...blah...blah....but they will disclose anything confusing, out of the norm, often industry specific variances and the like.

[QUOTE="ActicEdge"]

[QUOTE="SUD123456"]

Sure, you can call it gross profit too. In any case, you have Revenue - Direct Costs (or COGS)= (Margin, Operating Profit, Gross Profit....they all are variations on the same thing). Then you deduct indirect costs/overhead etc. Then depreciation, interest and taxes. And you end up with net income or net profit.

No I am not an accountant.

But I am probably your Dad's age. Over 20 years business experience, Senior corporate executive type. MBA. Many years of management consulting.

But none of that matters. I can read an income statement and I know how and where to look for these details. It is right there in black and white on EA's income statement.

themyth01

Makes sense. I'm still learning about all the ins and outs of accounting if I ever deside to pursue it lol. I have a question for you though if you could answer it, is there anyway for the general public to find out things like how a company aplies their deprediation contra asset and the like? I never am able to find it in there statements.

Alright, I'll make sure I take a better look next time. Thank you :) I assume that the government gives them certain depreciation methods and percentages to use though so it wouldn't be too much of a big deal. Just curious.

Edit: Forgive my cluelessness but I'm rather new at this. 10k would stand for what exactly?

[QUOTE="themyth01"][QUOTE="ActicEdge"]

Makes sense. I'm still learning about all the ins and outs of accounting if I ever deside to pursue it lol. I have a question for you though if you could answer it, is there anyway for the general public to find out things like how a company aplies their deprediation contra asset and the like? I never am able to find it in there statements.

SUD123456

Right. So does the taxman. Generally the system has tax accepted norms & schedules for depreciating different classes of assets. So, there may just be generalized statements about depreciating IAW GAAP...blah...blah...blah....but they will disclose anything confusing, out of the norm, often industry specific variances and the like.

Okay got it. I suspose that makes sense since the gov't wouldn't know the typical industry norm for the worth and value of all the hardware software and general assets since it varies from industry to industry.

[QUOTE="SUD123456"]

[QUOTE="ActicEdge"]

Are you an accountant out of curiousity? I'm normally use to calling it Gross profit (I tink its gross profit anyway) so I was like what when I read your explanation :P

ActicEdge

Sure, you can call it gross profit too. In any case, you have Revenue - Direct Costs (or COGS)= (Margin, Operating Profit, Gross Profit....they all are variations on the same thing). Then you deduct indirect costs/overhead etc. Then depreciation, interest and taxes. And you end up with net income or net profit.

No I am not an accountant.

But I am probably your Dad's age. Over 20 years business experience, Senior corporate executive type. MBA. Many years of management consulting.

But none of that matters. I can read an income statement and I know how and where to look for these details. It is right there in black and white on EA's income statement.

Makes sense. I'm still learning about all the ins and outs of accounting if I ever deside to pursue it lol. I have a question for you though if you could answer it, is there anyway for the general public to find out things like how a company aplies their deprediation contra asset and the like? I never am able to find it in there statements.

BTW. If you find this interesting or confusing or both :) you should be aware that it is going to get a heck o lot more interesting/confusing in the next few years. This is because GAAP is on the way out and IFRS (International Financial Reporting Standards) is on the way in. My company is already maintaining dual books and will cut over completely in 2011. I am in Canada, so we are a bit ahead of the US but it is coming there too.

Another impact of globalization. With all of the business/accounting scandals over the past decade, the big brained accountants have decided that a core problem is that the rules are different all over which makes international business susceptible to shenanigans. Plus it is just too hard to compare in general between say Europe and the US. Therefore, we are all generally moving to a merged set of financial principles for comaprison purposes called IFRS.

And guess what. Depreciation rules changes is/are one of the largest impacts/changes.I am in a cpital intensive industry and we are going through the nightmare of restating hundreds of different asset classes vis-a-vis depreciation and remaining useful life. This stuff is in every report, every spreadsheet, every financial tracking mechanism, every IT system. We are a multibillion $ company and this is 3 year+ exercise with dozens of accountants and lawyers. It ain't pretty. :) But hey...if you want a career in it...now be the time.

[QUOTE="themyth01"][QUOTE="ActicEdge"]

Makes sense. I'm still learning about all the ins and outs of accounting if I ever deside to pursue it lol. I have a question for you though if you could answer it, is there anyway for the general public to find out things like how a company aplies their deprediation contra asset and the like? I never am able to find it in there statements.

ActicEdge

Alright, I'll make sure I take a better look next time. Thank you :) I assume that the government gives them certain depreciation methods and percentages to use though so it wouldn't be too much of a big deal. Just curious.

[QUOTE="ActicEdge"]

[QUOTE="themyth01"] It should be on the 10K of the company reporting. I did a 50 page report on HP's financial statements last year and they did include their depreciation methods, ultimately it depends on the company although GAAP requires disclosure of this information. themyth01

Alright, I'll make sure I take a better look next time. Thank you :) I assume that the government gives them certain depreciation methods and percentages to use though so it wouldn't be too much of a big deal. Just curious.

Yeah I started thinking about it and realized that with all the methods of depreciation it would not make sense for there to be one strict type of depreciation handed out by the gov't. Normally the type of depreciation is handled by the accountant for what they deem is the most appropriate given the asset, its current worth and its time in use. Hence why I wanted to know if they are on the statements because the allocation of time that the depreciaiton occurs in could affect a few things I believe.

[QUOTE="ActicEdge"]

[QUOTE="SUD123456"]

Sure, you can call it gross profit too. In any case, you have Revenue - Direct Costs (or COGS)= (Margin, Operating Profit, Gross Profit....they all are variations on the same thing). Then you deduct indirect costs/overhead etc. Then depreciation, interest and taxes. And you end up with net income or net profit.

No I am not an accountant.

But I am probably your Dad's age. Over 20 years business experience, Senior corporate executive type. MBA. Many years of management consulting.

But none of that matters. I can read an income statement and I know how and where to look for these details. It is right there in black and white on EA's income statement.

SUD123456

Makes sense. I'm still learning about all the ins and outs of accounting if I ever deside to pursue it lol. I have a question for you though if you could answer it, is there anyway for the general public to find out things like how a company aplies their deprediation contra asset and the like? I never am able to find it in there statements.

BTW. If you find this interesting or confusing or both :) you should be aware that it is going to get a heck o lot more interesting/confusing in the next few years. This is because GAAP is on the way out and IFRS (International Financial Reporting Standards) is on the way in. My company is already maintaining dual books and will cut over completely in 2011. I am in Canada, so we are a bit ahead of the US but it is coming there too.

Another impact of globalization. With all of the business/accounting scandals over the past decade, the big brained accountants have decided that a core problem is that the rules are different all over which makes international business susceptible to shenanigans. Plus it is just too hard to compare in general between say Europe and the US. Therefore, we are all generally moving to a merged set of financial principles for comaprison purposes called IFRS.

And guess what. Depreciation rules changes is/are one of the largest impacts/changes.I am in a cpital intensive industry and we are going through the nightmare of restating hundreds of different asset classes vis-a-vis depreciation and remaining useful life. This stuff is in every report, every spreadsheet, every financial tracking mechanism, every IT system. We are a multibillion $ company and this is 3 year+ exercise with dozens of accountants and lawyers. It ain't pretty. :) But hey...if you want a career in it...now be the time.

Naw, its pretty interesting. Not too overwhelming if someone breaks it down for you. I am also in Canada but had no clue that the Generally Accepted Accounting Principles were leaving. I just learned them this year lol. Makes sense though with all the different ways accounting is handled in the world. Same statements but different rules governing the use of those statements if I'm correct. (If I'm wrong tell me lol) So yeah this sounds kinda huge, but heh, If my first plan fails, this is where I am heading anyway so might as well get use to it :P

[QUOTE="SUD123456"]

[QUOTE="ActicEdge"]

Makes sense. I'm still learning about all the ins and outs of accounting if I ever deside to pursue it lol. I have a question for you though if you could answer it, is there anyway for the general public to find out things like how a company aplies their deprediation contra asset and the like? I never am able to find it in there statements.

ActicEdge

BTW. If you find this interesting or confusing or both :) you should be aware that it is going to get a heck o lot more interesting/confusing in the next few years. This is because GAAP is on the way out and IFRS (International Financial Reporting Standards) is on the way in. My company is already maintaining dual books and will cut over completely in 2011. I am in Canada, so we are a bit ahead of the US but it is coming there too.

Another impact of globalization. With all of the business/accounting scandals over the past decade, the big brained accountants have decided that a core problem is that the rules are different all over which makes international business susceptible to shenanigans. Plus it is just too hard to compare in general between say Europe and the US. Therefore, we are all generally moving to a merged set of financial principles for comaprison purposes called IFRS.

And guess what. Depreciation rules changes is/are one of the largest impacts/changes.I am in a cpital intensive industry and we are going through the nightmare of restating hundreds of different asset classes vis-a-vis depreciation and remaining useful life. This stuff is in every report, every spreadsheet, every financial tracking mechanism, every IT system. We are a multibillion $ company and this is 3 year+ exercise with dozens of accountants and lawyers. It ain't pretty. :) But hey...if you want a career in it...now be the time.

Naw, its pretty interesting. Not too overwhelming if someone breaks it down for you. I am also in Canada but had no clue that the Generally Accepted Accounting Principles were leaving. I just learned them this year lol. Makes sense though with all the different ways accounting is handled in the world. Same statements but different rules governing the use of those statements if I'm correct. (If I'm wrong tell me lol) So yeah this sounds kinda huge, but heh, If my first plan fails, this is where I am heading anyway so might as well get use to it :P

Well good for you. It can be interesting and any good accountant will have a lot of insight into business in general. It is also no surprise that the single largest % of N American CEO's come up through the finance/accounting side of business.

Also, on your other musings around gov't role. While it is generally true that companies have some flexibility on which method of depreciation to use, the taxman does have a major role in the whole process. That is becauseRevenueCanada/IRS etc control the depreciation schedule. So, if you want the tax advantage you may have some flexibility on straightline, declining balance etc but you have little to no flexibility on the overall timeframe, which is set out in tax schedules. You would have to demonstrate the uniqueness of your asset if you wanted to depreciate it over a longer term than the schedule would seem to indicate.

[QUOTE="ActicEdge"]

[QUOTE="SUD123456"]

No it doesn't. Period. End of story. Rev - Dev costs = Net Margin or Net Operating Profit.

Net Revenue is always BEFORE costs.

SUD123456

Are you an accountant out of curiousity? I'm normally use to calling it Gross profit (I tink its gross profit anyway) so I was like what when I read your explanation :P

Sure, you can call it gross profit too. In any case, you have Revenue - Direct Costs (or COGS)= (Margin, Operating Profit, Gross Profit....they all are variations on the same thing). Then you deduct indirect costs/overhead etc. Then depreciation, interest and taxes. And you end up with net income or net profit.

No I am not an accountant.

But I am probably your Dad's age. Over 20 years business experience, Senior corporate executive type. MBA. Many years of management consulting.

But none of that matters. I can read an income statement and I know how and where to look for these details. It is right there in black and white on EA's income statement.

Seriously, you can't figure this out? EA doesn't compete in the 'Halo Killer' segment. That being the FPS where virtually no creativity resides. Not saying there is massive creativity in sports games either. Just easier to find a place for your wares when you're not going up against that. The only buzz on 360 is in the FPS catagory. Deny it if you want then read this forum for awhile. By the way, I don't buy FPS's for my 360. They play too slow & control awkwardly on it.

[QUOTE="bronxxbombers"]For some reason that doesnt make any sense to me. Theres more 360s out there, and I think the 360 has a higher game per console rating. -GeordiLaForge-

Do you have a link supporting that claim? Because the last time I saw some official numbers (must've been about a year ago) on attach rates, the PS3's and 360's were kinda similar while the Wii's was significantly lower.

Well...at least PS3 outperforms 360 for someone!

[QUOTE="-GeordiLaForge-"][QUOTE="bronxxbombers"]For some reason that doesnt make any sense to me. Theres more 360s out there, and I think the 360 has a higher game per console rating. NielsNL

Do you have a link supporting that claim? Because the last time I saw some official numbers (must've been about a year ago) on attach rates, the PS3's and 360's were kinda similar while the Wii's was significantly lower.