Not that I disagree that console games generate more revenue, but out of curiosity how much of that 2.4 billion figure comes from 1 or 2 franchises?
According to NPD the top 10 titles for 2013 accounted for 38% of all game sales. In 2012, the top 10 titles accounted for 30% of all game sales. It appears that the game market is growing increasingly more top heavy.
The most recent info I could find is the company that makes league of legends (and thats a huge PC game) made $200 million revenue in 2013 (1000 employees)
activision blizzard $4500 million revenue 2013 (~6500 emploees)
revenue
20% Online subscriptions (this includes WOW/pc stuff but also console stuff)
7% PC
21% PS
26% XB
5% wii/U
14% mobile/handheld
7% Distribution (whatever that is)
Some more interesting numbers from Activision-Blizzard.
Product sales revenue (digital + physical) - 3.201 billion USD
Subcription, licensing, and other revenue - 1.382 billion USD
Activision (mostly console revenue) - 2.895 billion USD
Blizzard (mostly PC revenue) - 1.124 billion USD
Retail GAAP revenue - 2.701 billion USD.
Digital GAAP revenue - 1.559 billion USD
It's probably safe to say the majority of the difference between Products sales revenue and Retail revenue is due mostly to PC digitial distribution as both PS4 and Xbox 4 came at the very end of the year.
North America revenue - 2.414 billion USD
Europe revenue - 1.826 billion USD
Asia Pacific - 0.343 billion USD
Shows why North America is still so important. Especially when taking into consideration localization (1 language for NA versus multiple for Europe + Asia Pacific). Which is a good indication of why console companies try so hard to "win" North America even if it means potentially losing sales in Europe + Asia Pacific. I imagine the potential for that to change is quite dramatic if China completely opens up for consoles AND you manage to convince most of the Chinese to buy instead of pirate. PC gaming is huge in China but generates virtually no revenue unless you are an MMO or follow a F2P monetization method. Unfortunately, I don't see both of those things happening with regards to China in the near future.
Going to platform sales, which you represented as percentages instead of numbers. The split between Xbox and Playstation numbers does well to illustrate again why NA is so important. Despite PS4 selling more units than Xbox One and despite worldwide install numbers being basically equal between PS3/X360, the combined sales for Xbox titles still held a comfortable lead over the Playstation titles. I expect that to change for 2014 with Playstation leading as they'll likely have "won" NA convincingly by the end of 2014.
One other interesting thing of note from platform revenues. For PC...
2011 - 282 million
2012 - 675 million
2013 - 340 million
And then the notes for that...
Net revenues from PC decreased in 2013, as compared to 2012, primarily as a result of lower revenues from Diablo III for the PC, which was released in May 2012, partially offset by revenues from StarCraft II: Heart of the Swarm, which was released in March 2013, and the recognition of previously deferred revenues from Call of Duty: Black Ops II. Net revenues from PC significantly increased in 2012, as compared to 2011, primarily as a result of sales of Diablo III. The increase was partially offset by the decrease in revenues from StarCraft II: Wings of Liberty, which was released in July 2010.
That quite handily illustrates how one title can absolutely determine whether a company/division/publisher/developer is profitable or not. Going by that, Diablo III likely had a greater than 400 million USD impact on Blizzard's revenue for 2012. That would have represented ~8-9% of the company's total revenue. But that shouldn't be surprising as for 2012, Diablo III managed to stay in the NPD top 10 for a long time despite being released only on PC.
Something that some people might find interesting is the cost of sales. IE - how much money is being spent in order to publish, market, and sell game software.
Product costs (packaging, distribution, duplication, etc.) - 1.053 billion USD
Online subscription costs - 0.204 billion USD
Software royalty and amortization costs - 0.187 billion USD
Intellectual property license costs - 0.087 billion USD
Product developement costs - 0.584 billion USD
Sales and marketing costs - 0.606 billion USD
General and administrative costs (this would include property costs like utilities, etc.) - 0.490 billion USD
Income tax (represents 23.4% of pretax income) - 0.309 billion USD
Publishing games isn't cheap.
It is more expensive to package, distribute and sell retail product than it is to actually develope said product.
Sure I dont disagree with that, but pirated software aint exactly doing the companies balance sheet a world of good
Sure but imagine the impact on a company's bottom line if they can get even 5-10% of PC piraters to purchase instead of pirate. Especially when you look at the rampant pirating in China and the SEA (Southeast Asia) economic region. Even if it was only say 20-30% of the price of the title in Western markets. If it was digital distribution only, the developer/publisher wouldn't even lose that much in comparison to the retail product in Western markets.
Regards,
SB