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News Interesting: PlayStation Made More Than Double The Revenue Then Nintendo This Past Finacial Year But Only Made Half The Profit Of Nintendo

I read on IB that the sales counts 100% of 3rd party revenue while Nintendo only counts their 30% cut. so depending on how you want to measure, Nintendo's is artificially low or Sony's is artificially high
 
This honestly isn't news at all. Sony has always generated more revenue, Nintendo has always generated more profit. It speaks to the difference in the business strategies. Further muddying the numbers is the way Sony and Nintendo calculate their revenue/profits is different, so a straight comparison of the numbers isn't accurate.
 
IMO not sustainable for Sony. To use a baseball metaphor, if each game they make is a big $200m swing, it will take very few misses before they’re out. Nintendo has big swings like Zelda, but their lineup is padded out with low budget bunts like Endless Ocean and Another Code Recollection that only need to sell a few hundred thousand copies to break even, but could go on to be a huge seller.
 
Yeah, it's been this way for a while. Hell even Xbox is usually higher than Nintendo revenue wise iirc, though like others have mentioned there are inconsistencies in how each are calculated so knowing the exact ratios is tricky. Nintendo would have a long way to go to ever be the market leader in the industry but I'm sure they're perfectly content profiting at the level they're at.
 
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ILikeFeet said:
I read on IB that the sales counts 100% of 3rd party revenue while Nintendo only counts their 30% cut. so depending on how you want to measure, Nintendo's is artificially low or Sony's is artificially high
Click to expand...
Yeah this sounded kinda weird right off the bat. I'm in full doubt mode until I see proof.

Which funny enough I go to all the trouble of clicking "Loading Tweet..." only for the tweet to no longer even be there, so I don't even know what we're referencing.
 
Prophet64 said:
Yeah this sounded kinda weird right off the bat. I'm in full doubt mode until I see proof.

Which funny enough I go to all the trouble of clicking "Loading Tweet..." only for the tweet to no longer even be there, so I don't even know what we're referencing.
Click to expand...
The post is still there, X is just very broken nowadays, especially if you don’t have an account.
 
Sony is selling more expensive hardware and this year they wouold have also sold more of them, the average PS5 is probably on average 45-50% more expensive than Switch when you blend all the SKUs

They outsold PS5 vs Switch by about 34%

Finally The way Sony counts its revenue from 3rd parties is to count the price of the whole game, so if the game is $70, they count $70 as PlayStation revenue not their 30% cut.

Nintendo only reports their 30% cut.
This is why in their financials you routinely see 70-80% share for 'first party' software with the fine print that it is actually by revenue not units; when if you convert the 3rd party revenue into units, its probably closer to 45-50% is first party. Still a significant chunk of software sales compared to Sony but nowhere near as skewef.

Those two would make up a lot of the revenue differential. The remainder is Sony has far more subscription and digital evenues compared to NSO and eshop from sales of DLCs, ultimate teams and other ingame purchase.
And that's one place where Nintendo can grow.
 
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