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Microsoft made $2.2b in profits on Software and Services in 2019

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Dyle

Dyle

One Winged Slayer
The Fallen
Oct 25, 2017
29,903
Rodrigues solitaire said:
Just 5% of profits from PC... and people adamant that Sony should publish their entire catalogue on there.
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The 5% is PC platform holders' profits, not overall profit. So just the profit that Steam and Epic (and to a lesser degree perhaps CD Projekt, EA, Ubisoft, itch, etc.) themselves make as storefronts. Any money that a publisher like Sony would make from selling their games on PC would go into the publisher bracket
 
Don Dada

Don Dada

Member
Oct 27, 2017
1,093
Holy shit at tencent - you don't need to be in the hardware business to be the biggest player in the game.
 
ArmGunar

ArmGunar

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Oct 30, 2017
6,527
arsene_P5 said:
No. This is the Sony profit for gaming (PS + mobile). You only listed PS revenue.
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Are we sure about that ?

Nonetheless, I can add roughly $1B from Mobile Gaming, under SME Japan

PlayStation Software & Services Revenue in 2019 (Calendar Year) is $13.66B
Mobile Gaming Revenue from SME Japan is $1.00B
So according to this, they made $4.1B Profits from that
An operating margin of 28%

PlayStation S&S Revenue in 2020 grew 30.4% YoY to $17.81B
Mobile Gaming (SME Japan) in 2020 is at about $1.29B
 
Heshinsi

Heshinsi

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Oct 25, 2017
16,091
arsene_P5 said:
You misunderstood him. It's the whole of Sony gaming, which is on the left Playstation and on the right mobile. So the profit isn't PS profit in 2019, it's mobile AND PS profit.
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Ok thanks for explaining it. They meant software and services from all of Sony instead of just PlayStation.
 
vixolus

vixolus

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Sep 22, 2020
54,276
I'm not sure how anyone can compete with Tencent given their access to the Chinese market and it's been shown even in this court case just how much money comes from the F2P and mobile market, of which China is a huge market for.
 
Toriko

Toriko

Member
Dec 29, 2017
7,668
People still being surprised Tencent is so huge.

This is the revenue in 2020 across all the major companies. Tencent is huge

 
EagleClaw

EagleClaw

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Dec 31, 2018
10,679
Corralx said:
Literally everything Tencent (and most of these companies) do can be defined Software and Services.
It doesn't exactly define what's included and what's not.
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I believe it is gaming related software and services.
The profit for all services and software for Microsoft seems to be a little bit low, no?
I mean, Microsoft has Windows and Azure, Office and so on.
 
gofreak

gofreak

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Oct 26, 2017
7,734
Corralx said:
Yeah this is the whole of Sony.
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I don't think it is. Sony's overall operating income in FY19 and FY20 were $8-9bn. SIE's was $2.2-3.2bn.

I don't think this number maps neatly to any headline figure from Sony's financials - I think it's a Microsoft synthesis of numbers from those financials to derive profit on 'software and services' alone. Presuming hardware and hardware r&d would be a profit drag, if SIE's overall operating income was in the $2-3bn range, then this ($4bn) is probably their synthesis of profit on software/services alone within SIE (and maybe also mobile gaming).
 
$2.2b according to this chart
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    • ZhugeEX

    ZhugeEX

    Senior Analyst at Niko Partners
    Verified
    Oct 24, 2017
    3,099
    They forgot that not redacting the first part means you can work out it's $2.2 billion from this chart

    unknown.png
     
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    • Corralx

    Corralx

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    Aug 23, 2018
    1,176
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    gofreak said:
    I don't think it is. Sony's overall operating income in FY19 and FY20 were $8-9bn. SIE's was $2.2-3.2bn.

    I don't think this number maps neatly to any headline figure from Sony's financials - I think it's a Microsoft synthesis of numbers from those financials to derive profit on 'software and services' alone. Presuming hardware and hardware r&d would be a profit drag, if SIE's overall operating income was in the $2-3bn range, then this ($4bn) is probably their synthesis of profit on software/services alone within SIE (and maybe also mobile gaming).
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    That's kind of the problem.
    It's not *every* Sony business, but it's a lot more than just SIE.
    So it's not obvious how these numbers were gathered and what they include vs. what they don't.
    Microsoft seems very low, obviously doesn't include Azure, however that's an important part of the gaming devision of Microsoft and its services in a sense.
     
    gofreak

    gofreak

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    Oct 26, 2017
    7,734
    Corralx said:
    That's kind of the problem.
    It's not *every* Sony business, but it's a lot more than just SIE.
    So it's not obvious how these numbers were gathered and what they include vs. what they don't.
    Microsoft seems very low, obviously doesn't include Azure, however that's an important part of the gaming devision of Microsoft and its services in a sense.
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    I think they're just looking at 'game industry' software and services profits here, so counting Azure at large wouldn't be accurate. I think it's definitely their own analysis and derivation of a like-for-like figure for 'gaming software' across all companies based on public financials, and maybe some of their own assumptions, but, yeah, the methodology is a bit opaque. There's probably another slide explaining how the figures were calculated, or references to addendums that maybe weren't included.
     
    pswii60

    pswii60

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    Oct 27, 2017
    26,657
    The Milky Way
    Toriko said:
    People still being surprised Tencent is so huge.

    This is the revenue in 2020 across all the major companies. Tencent is huge

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    MS far closer to Nintendo than expected. You'd think Nintendo would be miles ahead in terms of revenue given how Switch was on fire in FY2020 and their first party sales were pretty astronomical too.
     
    vixolus

    vixolus

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    Sep 22, 2020
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    GamingCJ said:
    But then Apple would have made $5.2B profit with gaming?
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    Their app store profits probably. Mobile money. In Microsoft's recent Q (I know this is from 2019) Office/Business had like 18B revenue and Windows had like 15B. There's no way they only profited 2B across all their division's software and services. Idk I could be wrong but I think it's gaming related because of the context.
     
    gofreak

    gofreak

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    Oct 26, 2017
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    Laver said:
    This makes no sense. Why would be Microsoft making losses on Xbox One hardware in 2019?
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    It's not just per-unit-sold profit/loss that would contribute here, but R&D on hardware is expensed also - and that would have been large in 2019 for the ramp up to next-gen.

    pappacone said:
    1.7b loss on hardware in 2019? It seems strange, I find the mobile thing to be more convincing to justify the difference, but I guess he is well informed?
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    PS5 R&D was at full tilt in 2019.
     
    ArmGunar

    ArmGunar

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    arsene_P5 said:
    No worries, I had to read it twice myself, because it's easy to misunderstand the sentence imo.Yes and those are impressive numbers.
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    Well I think it's PlayStation only
    In the methodology on the right, they said they picked G&NS Revenue from Sony's financial documents

    And the $4.1 Profits reported earlier is exactly what they calculated here ($4,059)
    Minus the hardware loss ($1,702), we got an Operating Profit of $2.357B which is exactly the operating profit of PlayStation (only) in calendar year 2019

    E0pDRABXoAAMEl_
     
    jroc74

    jroc74

    Member
    Oct 27, 2017
    28,992
    Kouriozan said:
    When you redact something but it already goes in a decreasing order, haha.
    Surprised Microsoft is behind Nintendo on profit for this software/service category, and even 2019 before the Animal Crossing behemoth.
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    This is a perfect example of a type of redaction that should have included the others, because one can still have a good approximation of MS's amount.

    It wasnt even worth it to redact only MS.

    Wait, are the others already made public? In that case...didnt really matter then.
     
    OP
    OP

    Raigor

    Member
    May 14, 2020
    15,132
    pappacone said:
    1.7b loss on hardware in 2019? It seems strange, I find the mobile thing to be more convincing to justify the difference, but I guess he is well informed?
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    Consoles still cost money to make even after several years. Sony and MS rely more on third party games and in-game purchases compared to console sales revenue wise.

    Also R&D for the next gen consoles
     
    EagleClaw

    EagleClaw

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    Dec 31, 2018
    10,679
    Laver said:
    This makes no sense. Why would be Microsoft making losses on Xbox One hardware in 2019?
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    Highly unlikely.
    But still, those are not the profits those companies have in their briefcase.
    Money is spend all the time on new game development, service offers and of course new hardware designs.

    EDIT:
    The tweets are faster than me
     
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