Prophecy2k
Veteran
As to PC versus console revenue. It's not accurate to use revenue as a gauge to determine whether one is better or worse than another for a publisher as revenue =/= profit generated. The more reliant a segment is on physical sales the less profit is generated per unit of revenue. Thus lower revenue can reflect a healthier segment than one with higher revenue. For example, a purely digital sales (greater than 80% on PC while lower than 20% on consoles) is basically guaranteed to be at least 70% margins. A software title sold physically is likely to average around 20-30% margins for the publisher. For new titles. For older discounted titles that might drop as low as 5% (physical media and distribution costs do not go down when the MSRP is reduced unlike a purely digital product).
Regards,
SB
It's not a question of accuracy but of relevance. And I would argue that looking at the Console vs. PC markets for AAA games from the perspective of revenue is indeed just as relevant from this perspective. Sales revenue is a direct indication of unit sales, and from the perspective of a AAA game publisher, the larger the unit sales the more potential there is for profit growth through further monetisation.
E.g. if Pub A sells 2,000,000 digital unit of Game X on PC with a 70% margin, but sells 8,000,000 physical units on consoles with a 20-40% margin, then the console market in absolute terms is likely to get more focus, regardless of whether the profits generated between both are only at the lowest around 15% more on consoles. Main reason being is that the potential for further profit growth is greater on consoles, as an effort to convert those physical buyers to digital buyers will net further profits for the same sales volumes, as well as the console segment providing 4 times the number of users that you can further monetise through subs and DLC.
What you're failing to recognise in your very simplistic comparison is that those console revenue figures not only include digital sales of full games (which you're right currently make-up around 20-25%, however that ratio is growing steadily), but DLC which sells many orders of magnitude more units on consoles than PC.
Also, average console games sales are front loaded with physical boxed products, with a higher unit price. With steam sales and bundles on the PC side, the average PC game unit price is much likely significantly lower (PC gamers don't buy games for $60 a pop). So looking only at percentage margins isn't giving the full picture, as the pub could in effect be earning considerably more per console game sale at the average unit price than on PC, despite significantly higher % margins on PC game unit prices.