• Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
  • We have made minor adjustments to how the search bar works on ResetEra. You can read about the changes here.
Oct 25, 2017
4,841
Revenue is not linear with install base, the higher your install base the more you have penetrated the casual, less spending market.

Microsoft's gaming division revenue number also includes PC game sales, Minecraft sales on all platforms, etc.
You need to pay $60/year to play games online, which this gen is basically a mandatory payment now. So a casual player would still spend money on the most profitable thing they're selling, and on top of that they most likely will not be redeeming all the monthly games which is the part that costs the most money to MS/Sony so it's more pure profit for the platform holder.
 

DGS

Member
Nov 2, 2017
2,297
Tyrol
Nintendo at the end of the year in 2nd place? With Pokemon and SSB they have good chances, I guess. For Sony, that's quite a turn around after the last gen - a really big gap. Congratulations.
 

bombshell

Banned
Oct 27, 2017
2,927
Denmark
You need to pay $60/year to play games online, which this gen is basically a mandatory payment now. So a casual player would still spend money on the most profitable thing they're selling, and on top of that they most likely will not be redeeming all the monthly games which is the part that costs the most money to MS/Sony so it's more pure profit for the platform holder.
What does profit have to do with revenue? A casual player buys less things than a hardcore player = less revenue. What I wrote is true.
 

bitSS

Self-requested ban
Banned
Nov 9, 2017
1,319
Portugal
How much growth did Nintendo have compared to the one before last fiscal year (not this year)? That would be a very interesting figure.
 

BoxManLocke

Member
Oct 25, 2017
4,158
France
You need to pay $60/year to play games online, which this gen is basically a mandatory payment now. So a casual player would still spend money on the most profitable thing they're selling, and on top of that they most likely will not be redeeming all the monthly games which is the part that costs the most money to MS/Sony so it's more pure profit for the platform holder.

Are you sure that's how it works ?

To answer the first part of your post, the standard casual plays Fortnite nowadays, so no, they wouldn't necessarily be paying for a PS+ subscription.
 

Simba1

Member
Dec 5, 2017
5,383
Thats nice but that doesn't tell us much without profit numbers, for instance:
-Nintendo revenue $9.7 billion, profits $1.3 billion
-PlayStation revenue $17.29 billion, profits $1.6 billion
 
Oct 25, 2017
4,841
Are you sure that's how it works ?

To answer the first part of your post, the standard casual plays Fortnite nowadays, so no, they wouldn't necessarily be paying for a PS+ subscription.
That's how it works. The developer payment for having a game on Plus is dependent on how many people actually redeem the game. This was leaked in the Fez financial information when someone hacked the developer for that game. I'm not sure about the equivalent for Xbox Live Gold, but it is likely the same because you can miss Gold games too if you don't redeem them.

Fortnite only blew up this year, and they'll still have to pay for Plus to play the EA sports games.
 

Chris.

Member
Oct 27, 2017
1,920
I would have expected them to have at least twice the revenue if they have at least twice the userbase. Doesn't seem like they are capitalising on their lead as much as the other 2.
It's been pretty common knowledge even ubisoft has said Xbox users spend more than playstation on a per user basis

But that makes sense for multiple reasons (less casuals, more services - EA, game pass, could even include name changes lol). Then the digital % per user is higher too, but that makes sense with things like refunds and the exclusives being more MP focused and making more sense to be bought digitally. Also initiatives like BC add security to your games coming with you to the next gen
 
Last edited:

BoxManLocke

Member
Oct 25, 2017
4,158
France
That's how it works. The developer payment for having a game on Plus is dependent on how many people actually redeem the game. This was leaked in the Fez financial information when someone hacked the developer for that game. I'm not sure about the equivalent for Xbox Live Gold, but it is likely the same because you can miss Gold games too if you don't redeem them.

Fortnite only blew up this year, and they'll still have to pay for Plus to play the EA sports games.

Interesting, thanks. No wonder the selection of games was so meager until recently.

I still think Sony's numbers make sense. Slightly less than double with such a high amount of casual players is pretty impressive to me. Some may pay for online, they still buy a lot less games.

Really curious to see how Nintendo's online will fare.
 

Ada

Member
Nov 28, 2017
3,736
How is Nintendo that close when they have fuck all for network services?
 

Magicpork

Member
Oct 28, 2017
230
http://www.chinadaily.com.cn/a/201803/21/WS5ab2387fa3106e7dcc145432.html

Going by this their gaming revenue is around $4-5 billion, which is a small amount compared to their overall revenue of around $36 billion. It will be interesting to see their growth going forward and I guess that's why Mat mentioned them in the first place.

Tencent's annual games revenue is around $20 billion. That number also doesn't include hardware sales. It's purely software and services.

Tencent is the largest games publisher by far.

Hardware is around $5bn+ for Sony, as a reference.

Yep... games revenue for 12 Months ending December 2018 is projected to be around $20bn.. but more impressively, Tencent is enjoying a staggering 30-40% y/y top line growth over the last 5 years...a lot of people tend to underestimate how dominant Tencent truly is in the industry so hopefully these numbers can paint a much better picture..

Tencent's online game revenues:

2013: $4.8bn
2014: $6.8bn
2015: $8.7bn
2016: $10.9bn
2017: $15.2bn
2018: $20.0bn (est.)
2019: $24.7bn (est.)
 
Last edited:

ACL

Member
Nov 18, 2017
1,304
Good revenue for all three of them. I think that this fiscal year Nintendo will top 10 billion, expecting 12-15 billion.
 
Mar 17, 2018
2,927
I would have expected them to have at least twice the revenue if they have at least twice the userbase. Doesn't seem like they are capitalising on their lead as much as the other 2.
That's always going to look like that when you get the masses involved who do not buy as much. Sony is reaping huge rewards, and yeah all these companies want to do better. But they are definitely capitalizing on their user base as much any other out there. It's hard to double your sales at that level lol.
 

chris 1515

Member
Oct 27, 2017
7,074
Barcelona Spain
That's always going to look like that when you get the masses involved who do not buy as much. Sony is reaping huge rewards, and yeah all these companies want to do better. But they are definitely capitalizing on their user base as much any other out there. It's hard to double your sales at that level lol.

+1 exactly and we compare different things microsoft gaming revenue against Playstation revenue. Minecraft revenue is into the comparison with huge mobile revenue, most of mobile game revenue on Sony side are out of Playstation revenue.
 

Mario Bilo

trying to circumvent a ban with an alt account
Banned
Jan 7, 2018
796
ItdI kind of a weird thing to compare the fiscal years especially when MicrosoftsM ends in the summer and Sonys and Nintendos end in March. It'd be better to wait for Sony and Nintendo to post their results and then simply add the last 4 quarters for a better comparison.
 
Oct 26, 2017
8,686
Wow!
Good for Microsoft!
And it seems like every one of the big 3 is making great profits this year, I hope this continues far into the future.
 

Ebtesam

Self-Requested Ban
Member
Apr 1, 2018
4,638
For people who want to know 2017 and 2018 Revenue

6aeb751bc180eabf2eb1a601a3620bc5.png
 

D.Lo

Member
Oct 25, 2017
4,348
Sydney
This is without doubt false. It's just not realistic given the amount of different ways there are to monetize games and services now. Not to mention Xbox has flat out said this is their first 10b
Got more detail, yeah okay it's not double including everything under the 'games' banners now. I had Nintendo figures and saw they were double, and I assumed Sony and MS did better at that stage but they did not.

Including all sources of revenue (which now includes mobile, especially for Nintendo, mini Virtual Console boxes for Nintendo, and all the other game based non-console services like Windows games store/Play Anywhere etc, especially for Microsoft), these figures add to 37.34 billion. Which is now half but still less than 2008 without any of that extra stuff.

Playstation was 11 billion revenue in 2008 (12 Months Ended March 2009). Nintendo revenue was 17 billion in 2008. Xbox 7.7 billion.
35.7 Billion in 2008 dollars is about $41.78 today. Nintendo peaked at 18.7 billion in revenue in 2009 though so 2009 may be even higher.
 

Nostradamus

Member
Oct 28, 2017
2,280
Do we know the actual profit that the big 3 made though? Revenue doesn't mean much really. I bet Nintendo usually makes the most profit.
 

P-Switch

Alt Account
Member
Jul 15, 2018
966
Most of PSN revenue isn't coming from PS+, and without PS+ revenue we wouldn't be looking at a much different picture. I'd guess taking a cut from every sale on the PS store is still the major revenue stream.


Right...I guess I'm just not being that clear.

PSN has become a virtual store for Sony. It's huge revenue increase has coincided with its service fee being implemented, but you are right to say there is more to the story than that.

You have movies and music and other media being sold there (that's increasing revenue). You have games with expensive digital passes being sold there. Microtransactions. DLC. Sony is earning revenue as more of a distribution service than as a gaming console provider....which is OK ...I'm just saying we should recognize that shift that happened this gen.

Microsoft was trying to shift that way well before Sony and the ps4. Nintendo is heading that way.

ZHugeEX had a good thread about the growth of PsN this gen:

https://www.resetera.com/threads/gr...this-generation-an-8-4-billion-segment.20670/

It accounted for $8.4 billion in revenue for last year. Also had a cool graph comparing where PSN and eshop is this gen so far and to think where Nintendo will be headed once it starts going down the same service road as Microsoft and Sony.

But for me, in comparison threads like this, it's the ending profit that makes more of a difference to how successful these companies are. At some point, the hardware segment will be the thing that drags Microsoft/Sony down I would think. Even Sony publicly admitted their future might be as a service.
 

Deleted member 6733

User requested account closure
Banned
Oct 25, 2017
1,441
So the take away is that gaming is healthy. Yay!

Good to see numbers, gives me hope for a secure future for Xbox.
 

Segafreak

Member
Oct 27, 2017
2,756
Got more detail, yeah okay it's not double including everything under the 'games' banners now. I had Nintendo figures and saw they were double, and I assumed Sony and MS did better at that stage but they did not.

Including all sources of revenue (which now includes mobile, especially for Nintendo, mini Virtual Console boxes for Nintendo, and all the other game based non-console services like Windows games store/Play Anywhere etc, especially for Microsoft), these figures add to 37.34 billion. Which is now half but still less than 2008 without any of that extra stuff.

Playstation was 11 billion revenue in 2008 (12 Months Ended March 2009). Nintendo revenue was 17 billion in 2008. Xbox 7.7 billion.
35.7 Billion in 2008 dollars is about $41.78 today. Nintendo peaked at 18.7 billion in revenue in 2009 though so 2009 may be even higher.

So the revenue is not half of what it was in 2008 but actually rivals it (a huge year with Sony having 3 consoles selling, the 360 coming into its own, the guitar hero hype and the Wii/DS/casual games juggernauts), and probably exceeds it with Sony's mobile games, got it.
 

Mbolibombo

Member
Oct 29, 2017
7,043
oh that's nice! GJ Phil and the rest of the xbox team

When do we see Sony and Nintendo quarterly reports btw?
 

Puroresu_kid

Banned
Oct 28, 2017
9,465
Very happy to see MS turnaround the xbox fortunes. Strong xbox is what the industry needs.

They fucked up but all platform holders fuck up at sometime.