Sorry but are you actually trying to argue that profit isn't relivant here? But what is relivant is how many games each user buys?....Also according to your argument PS3 owners must also have a problem with traditional third party game franchises, a much bigger problem then Wii owners actually. PS3 owners tastes must be even more different to past generations eh?
Also to be honest I don't think you know what I was suggesting with my original post. Otherwise you wouldn't be talking about things that are really only relivant to some internet console fans. What I'm talking about is what's important to developers and publishers. EA would not agree that there games don't sell well on Wii...
The ps2 has a way larger userbase than the wii and probably lower development costs, still it doesnt to a whole lot better than wii. Same for ps3. Even if you count in the difference in userbase the ps3 still does worse. For EA Wii is probably very profitable compared to what they invest on the games as most of them are just ps2 games with added wii controlls. That the revenue is low(er) could very well be because their games arnt alot more than ps2 ports and the lack of marketing.Three Months Ended Six Months Ended
September 30, September 30,
------------------ ------------------
2007 2006 2007 2006
--------- -------- --------- --------
Net revenue $ 640 $ 784 $ 1,035 $ 1,196
Cost of goods sold 395 339 561 506
--------- -------- --------- --------
Gross profit 245 445 474 690
Operating expenses:
Marketing and sales 164 108 246 185
General and administrative 84 72 155 131
Research and development 259 238 508 454
Amortization of intangibles 7 7 14 13
Acquired in-process technology - 2 - 2
Restructuring charges 5 4 7 10
--------- -------- --------- --------
Total operating expenses 519 431 930 795
--------- -------- --------- --------
Operating income (loss) (274) 14 (456) (105)
Interest and other income, net 32 24 58 45
--------- -------- --------- --------
Income (loss) before provision
for (benefit from) income taxes (242) 38 (398) (60)
Provision for (benefit from)
income taxes (47) 16 (70) (1)
--------- -------- --------- --------
Net income (loss) $ (195) $ 22 $ (328) $ (59)
========= ======== ========= ========
Earnings (loss) per share:
Basic $ (0.62) $ 0.07 $ (1.05) $ (0.19)
Diluted $ (0.62) $ 0.07 $ (1.05) $ (0.19)
Shares used in computation:
Basic 313 307 312 306
Diluted 313 315 312 306nobody denied PS3 is doing worse due to its low usebase and neither has anyone denied the PS2's tremendous fall of sales even with a huge userbase due to the shift towards the new wave of consoles.And you shouldnt compare wii with x360 to much
edit: this is a reply to Nesh.
That still doesn't tell you what platform was the most profitable overall as that 'net' only include the income actually getting into their bank account by the process of selling their product. Then you have to subtract actual 'costs of good sold' (i.e. the expenses incurred by the actual manufacturing and sale of the product) at $395 million, which isn't broken down by platform (one platform could be more expensive than the other, i.e. BRDs costing more than DVDs to make).This table is of net revenues.
Won't be on the books until next quarter. $625 million in cash for the company + "approximately $160 million in equity as management retention arrangements to certain employees of VG Holding Corp" (i.e. don't quit en masse guys, here's an incentive package).
Where did those numbers come from? I took $625M + $160M from the 10-Q (a SEC filing should be pretty authoritative). The loan is basically an advance that they won't take an extra hit for next quarter (the $35M outstanding asset will be written off against the cash payment) so I didn't include that.
SEC 10-Q said:
