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 Profits and Losses

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Sam Dalton
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PostSubject: Profits and Losses   Fri Sep 19, 2008 11:11 pm

Trying to contribute more topics here. Iceman usually posts everything.



This is just for a single year. Sony's losses from PS3 are much higher than the figure shown here, but this is just their losses from April 1st of 2007 to the end of March of 2008, which is still $1.255 billion. In contrast, Nintendo shows a profit of $2.594 billion for the same period. Nintendo made twice as much profit as Sony lost. Nobody even comes near Nintendo.

That was interesting, but these figures are also interesting because everyone else is either limping along or bleeding in the red. This means things are going to have to change dramatically in the video game business.

Capcom, the folks that made Resident Evil, expect to quit making any major titles as console exclusives, and this is because of this issue of high development costs and low profits, or even losses.

Quote :
"All major titles launched during the next fiscal year or thereafter will be developed as multi-platform games," reads the shareholder report, obtained by Shacknews. Accordingly, Capcom will use "an integrated development environment built to provide common development tools for Xbox 360, PS3 and PC platforms."

The reasoning is simple. By launching high-profile games (like Resident Evil 5, Street Fighter IV, Mega Man 9, and Bionic Commando) on as many platforms as possible, Capcom can maximize the number of players interested in playing its games, and subsequently make the company more money.

Once a staple in video games, third-party platform exclusives have largely become a thing of the past this generation (much to the approval single console owners), given the rising cost of video game development.


http://xboxevolved.e-mpire.com/article/No_Title/4751.html
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PostSubject: Re: Profits and Losses   Sat Sep 20, 2008 6:15 pm

No real surprises, at least for me. Anybody keeping tabs on the industry should pretty well have expected this sort of spread.

Something else that these figures suggest, however, is that another change needs to happen in the industry. Sony and Microsoft can't justify sustaining these kinds of losses in future hardware generations, especially in light of Nintendo's massive profits, and surely both Sony and Microsoft will be considering very different strategies going into the next hardware generation. We may see a shift from a focus on more powerful hardware and better graphics to development instead in other aspects of gaming, as pushing the hardware technologies and visuals is obviously killing everyone (financially, of course).

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PostSubject: Re: Profits and Losses   Sat Oct 04, 2008 8:09 pm

There is no way they can keep up those losses forever. I think you may be right Iceman.
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PostSubject: Re: Profits and Losses   Mon Oct 06, 2008 11:53 pm

man that sucks if it true. i want them to keep making better graphic. i dont want them to just keep it like now. evry new system always have better graphic excep for wii.
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PostSubject: Re: Profits and Losses   Mon Oct 06, 2008 11:57 pm

boomheadshot wrote:
man that sucks if it true. i want them to keep making better graphic. i dont want them to just keep it like now. evry new system always have better graphic excep for wii.

Actually, Wii did improve over last-gen. Not by a lot, but Wii is still more capable than even the Xbox of the previous generation. Unfortunately, developers haven't tried very hard to show it, but the capability is there. Gaming hasn't been about graphics, even though that's what so many like to debate, and if one looks at what consoles and handhelds have dominated over the years it's virtually always been the system with weaker hardware and poorer graphics than rival systems, with SNES being the only exception.

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