You're welcome. You can just google for them, or check Wikipedia (which links to the financial reports of the companies for its info).
I've always said that Sony has to be careful about the profits/revenue of its gaming division as it's simply another section of a large corporation. Unlike Microsoft (which has money to burn in the interest of gaining a new foothold) or Nintendo (which has always maintained a healthy profit margin on their systems), Sony doesn't have a lot of wiggle room to work with.
@Laoldar, the reason I would assume that is because I think more people are into non-rock music, simply because there's multiple genres there. Both because of pop & electronic music and because I had assumed that the number of people who have wanted to learn say guitar would be outnumbered by those who sing along to stuff. That is why I would think a property like Singstar could be much more hot if used properly than a rock-instrument oriented one. Though i still hold to that line of reasoning I do totally see your point of view where an instrument-object might cut off inhibitions and thus do more.
As far as the MSvsSony revenues & profitability: WOW! that was very insightful! thank you so very much! Where did you get those numbers, if I may ask? With those numbers in mind one of the biggest things I had put on their side: the fact that they're a company focused on profitability may turn against them and it suddenly seems possible to me that they might turn into more profitable pastures if MS over-cashes them. This does seem to fit in with the fact that they'd rather develop than pay for exclusives and the to me rather shocking news that they abandoned Cell research and opted to go for some kind of lens reasearch if I understood right. I had always figured a Cell 2 would be a logical next step for them, as it seemed to me from tech articles that technologically it's exactly the kind of architecture that benefits from more cores (I think I was reading they cut back on the number of p/sPUs, but that the technology is very fit for evolution... but I'm really not sure about that info). So should this press on it could indeed go either way with them choosing to go maybe into more profitable fields like cameras and displays... still, that would be a surprising move considering their present media empire.
I'd disagree...I think people are more likely to get into a rhythm game (like Guitar Hero) than a singing one as many people simply cannot sing.
Oh and as to why Microsoft has more money: In the fiscal year 2007 Microsoft had revenue of $51 billion, with net income of over $14 billion.
In fiscal 2007, Sony had revenue of revenue of $70 billion, with profits of $1 billion.
So while Sony has a higher level of revenue and is a more diversified company, Microsoft is a MUCH more profitable company due to having lower costs across the board.
@Laoldar, Amazed at how it's possible for MS to have so much more money than Sony. I had expected they'd be somewhat on equal footing.
On Singstar: the reason I think it could be/is a big deal is not because of past sales but because I think it's a great concept: I myself am not at all into music games, however seeing the huge success of GH & Rock Band I think: how many people are into rock & guitars and how many people are into singing. I believe the singing market is a much bigger market... if only it got exploited. I don't really agree that Sony neglected to go for the casual market. Actually I believe with things like Buzz and Singstar they were quite the visionaries... I believe they just lucked out in that sector. A big reason I believe is human nature: I listen to music on my mp3 player, I don't want to do it on my cellphone, even though i could. Similarly the new system marketed specifically at this market got a significantly more enthusiastic response than say the ps2 at a new sector. A parent buying a ps2 for casual games may have felt like he's opening the gateway for their children to 'harcore' games...
If you put out a game that sells well below expectations, why would you think it will have a positive effect on hardware sales? Since Sony loses money on that end too, it only becomes a positive if it attracts a new consumer (one who was not planning to buy it for another game) who then goes on to purchase many more titles. It's a very risky strategy that can quickly put a company into financial trouble.
Also, the point of the PS3 is to sell discs...both games and movies (Blu-Ray). If it fails to do either, it will be an immense failure (Sony does not need more awareness, they're easily one of the most recognizable electronics companies in the world).
There is a major difference between what Sony and what Microsoft can do as corporations...MS has the cash. Microsoft has tens of billions of dollars in reserve that they can use to break into a new sector (such as their losses in gaming until this past quarter). Sony does not have that money and in fact recently needed more credit due to their poor performance recently. Whle Microsoft can spend billions in the hopes of future gains, Sony cannot.
I agree with you that Singstar was (and is) a great concept that has been successful. I think a failing of Sony's is that they have failed to capitalize on the mainstream success of the PS/PS2. The strategy of Nintendo's Wii is a natrual progression of the "something for everyone" style of the PS2. Sony was perfectly positioned to control the new so-called "casual" market, but they neglected to do so.
@Laoldar, very good points, but for sony as a whole things can tie in and even out. like you said they may lose with the games to promote the hardware, but then the gains that are made by the hardware is passed on: I don't really understand how being the one who created Bluray benefits them, just like I have yet to learn how big a slice of the pie a hardware manufacturer gets from somebody wanting to make games on their system, but if I'm guessing right for them as a company as a whole might be okay even if the software studios work at a loss just to create bundles with the ps3 hardware. Worst case scenario, even if Bluray popularity brings them nothing financially, they might still benefit as a company as a whole from the living room awareness and penetration through their console, opening up posibilities for integration of different products (psp, cellphones, cameras, tvs...). From what I read in some articles many are saying MS has been doing that for a long time with it's products and consoles: redirecting cash profits from Office and Windows to create a stepping stone in a less profitable sector even at a loss.
All this I believe can work out great for Sony if they do indeed like they said have an overal strategy. And a determination to stick by it even if the media bashes them for a while. But I believe they may do it because I do believe that companies on such a big scale have to have big plans and unlike what journalists seem to often think I believe they not only give the consumers what they want but shape our tastes to the directions that will be in the future profitable. For example I think their whole Singstar concept is amazing. I myself am not into that, but they could turn that into a huuuge industry in itself... but i got sidetracked...
My point was: unlike what I've been reading some sugest that they just move on to an early launch with ps4 I think they just need to survive for now and not stop investing in ps3 and it will work out great for them in the longer term. The only question is if they are able to stay detached enough from the media and mass opinions to continue to invest heavily in something the media is telling them is a lost cause.
I think they're simply aware of how frontloaded video game sales have become. "1 million" was probably said just because it's a nice round number, but the point is that if MGS sells less than 1-2 million in its first month, Konami is in big trouble financially.
I wonder if Sony's focus on internal studios could become a liability. As this article says, publishers have to sell a lot more copies of a PS3 game (as opposed to a PS2 or even a Wii game) to break even...if Sony is moving to producing most PS3 exclusive games themselves, they are assuming a LOT of financial risk. How many PS3 games have made a profit over this first year?
Of course this is likely a move to try and keep pumping out titles for the system at a time when 3rd party developers are hesitant to do so. If consumers don't start buying more PS3 games soon though, it could scare away even more companies.
@Laoldar, I don't get why it has to be so much in first day sales and not more spread out. Reading the Reuters article I'm thinking more that Sony made the right move with focusing more on internal studios.
Granted it's a move that accepts the fact that 'accepts defeat' in the sense that it admits it's not going to rule the market like it did with the ps2, but presuming you saw that as inevitable it's a very smart move imo: you can't except big game companies to dedicate exclusives to you, so knowing that you are going to have at least a strong competitor you need to give consumers a strong reason to buy your sistem. Instead of giving a lot of money to third party and endign up with them capitalising on that money in the long term you make your own studios, and while you lose on software sales you're pushing the hardware and building IPs...
Should they pull through the short term (next 2 years) and keep a consistent vision I think that's quite a great strategy.
It's interesting that they refer to selling 500,000 as a PS3 exclusive as a "failure" that a company can only take once or twice. Those kinds of numbers don't look good for smaller companies looking to develop games for the PS3.
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You're welcome. You can just google for them, or check Wikipedia (which links to the financial reports of the companies for its info).
I've always said that Sony has to be careful about the profits/revenue of its gaming division as it's simply another section of a large corporation. Unlike Microsoft (which has money to burn in the interest of gaining a new foothold) or Nintendo (which has always maintained a healthy profit margin on their systems), Sony doesn't have a lot of wiggle room to work with.