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Back in 2020, PlayStation had lower gross margins than Xbox despite a 2:1 install base advantage

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Nubulax

Member
Saw this posted on twitter a while ago...... what are they spending over xbox that accounts for that huge of a disparity... VR mainly? Are there accounting tricks that would put their operating profits in the positive for Xbox, like offloading certain costs onto a different division of Microsoft
F6f7njqXkAABsen
 
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Godot25

Banned
Saw this posted on twitter a while ago...... what are they spending over xbox that accounts for that huge of a disparity... VR mainly? Are there accounting tricks that would put their operating profits in the positive for Xbox, like offloading certain costs onto a different division of Microsoft
F6f7njqXkAABsen
Lol.

"Xbox is burning Microsoft's money as a loss leader" 😂😂😂

Meanwhile they had higher profits then PlayStation division and that was in super dry year first-party wise. All while generating way less revenue then their competitor.

It also means that if ABK will go through Xbox division wiil be posting 4 billion in profits each year.

No wonder Sony wants to go GAAS where are real money.
 

lh032

I cry about Xbox and hate PlayStation.
OP you mad?

Guess those Phil emails spooked you.
 
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Nonehxc

Member
Shocked not shocked at the timing. It's almost like there's a fire going on in Redmond.
I love my 380$ new directly from MS Store Series X and my years of GPU for 75$ or so, same as with my other consoles, love them all and the games they provide, have a healthy relation with MS but the Xbox division is like it's run by retards pushing all the buttons to see if something happens that goes their way, reinforced by droves of whiny fighty obsessed internet mongos parroting PR bulletpoints force-fed through their asses like an inverted goose.

I mean, by reading the leak about the next Series X refresh, and reading about power consumption and sustainalibity and green 💚 (which I'm all in for, I don't shit in my living room so why should I shit on my environment)I'm fully expecting the next wave of retarded internet PR being vomited around will be...

DON'T BUY PS5 IT POLLUTES THE ENVIRONMENT PS5 KILLS PS5 KILLS PS5 KILLS

Then, probably, next Xbox will be ALL INCLUSIVE or something and it will be called

XShape Series They/Them

And PS6 will be labeled as transphobe and patriarchal because it doesn't herald different body realities on its branding or something.
 

Nubulax

Member
Lol.

"Xbox is burning Microsoft's money as a loss leader" 😂😂😂

Meanwhile they had higher profits then PlayStation division and that was in super dry year first-party wise. All while generating way less revenue then their competitor.

It also means that if ABK will go through Xbox division wiil be posting 4 billion in profits each year.

No wonder Sony wants to go GAAS where are real money.
This is why I was asking the question though.... What exactly is Sony spending an extra 6 billion dollars on or accounting for that xbox isnt... Xbox literally also has more studios atm if im not mistaken. Maybe VR was taking up a huge chunk of costs since it did release in this window along with God of War being the only notable first party game to release if im not mistaken
 

DJ12

Member
Man, Team Green is really desperate for some good news. Patting yourself on the back for launch year profits, is really scraping for scraps.
Didn't they spend 1.5 billion so series x could be priced the same as ps5.

No fucking way xbox launched into profit.
 

Tsaki

Member
Saw this posted on twitter a while ago...... what are they spending over xbox that accounts for that huge of a disparity... VR mainly? Are there accounting tricks that would put their operating profits in the positive for Xbox, like offloading certain costs onto a different division of Microsoft
F6f7njqXkAABsen
Sony bought Bungie. That money comes from the Playstation division.
 

Godot25

Banned
This is why I was asking the question though.... What exactly is Sony spending an extra 6 billion dollars on or accounting for that xbox isnt... Xbox literally also has more studios atm if im not mistaken. Maybe VR was taking up a huge chunk of costs since it did release in this window along with God of War being the only notable first party game to release if im not mistaken
Not that I care. I'm just laughing right now because after every quarterly report from Microsoft there are posts like
"They are hiding numbers because they are at loss"
"Microsoft is funding Xbox division from their pocket"
Meanwhile they are posting higher profits then PlayStation division. And as people on GAF told me, profits are most important metric 😂

But on the more serious note.. I think that Sony chasing GAAS is direct response to profit margins. Microsoft has Minecraft, Sea of Thieves and soon also Call of Duty and they are making quality money even years after release. And Sony needs that too.
 

Nubulax

Member
Not that I care. I'm just laughing right now because after every quarterly report from Microsoft there are posts like
"They are hiding numbers because they are at loss"
"Microsoft is funding Xbox division from their pocket"
Meanwhile they are posting higher profits then PlayStation division. And as people on GAF told me, profits are most important metric 😂

But on the more serious note.. I think that Sony chasing GAAS is direct response to profit margins. Microsoft has Minecraft, Sea of Thieves and soon also Call of Duty and they are making quality money even years after release. And Sony needs that too.
They still could be operating at a loss or at least that chart above could be a bit skewed if Sony was accounting for Bungie in PS operating costs and MS just wrote off zenimax and didnt include it in the accounting under xbox... because if that is the case that would mean xbox would literally be operating at a loss for the next 5+ years from Zenimax and ABK. Or if all their server costs are just not accounted for under xbox because they have Azure vs PS which has to buy servers from Amazon or whatever

I just find it interesting considering they have less studios, made 6 billion more, selling their console at a profit during this period, and dont have a day 1 sub service that they pay to have 3rd party games all the time on. You are def right on the GAAS side of things.. I believe Elder Scrolls online and Fallout 76 would also be included in this as well right?
 
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Xbox is more of a bring your own device situation.. for example, you can play Starfield on a $200 Chromebook if you wanted to, but if you want to play Spider Man 2, you can only do so on a PS5.
For the first 12-18 months. After that the definitive version of the game with all DLC makes its way to PC.
 

Del_X

Member
For the first 12-18 months. After that the definitive version of the game with all DLC makes its way to PC.

And at that point hype has waned and PC gamers are onto other things. Have any of the PC sony ports been a major success comparable to other AAA titles?
 

Tsaki

Member
Not that I care. I'm just laughing right now because after every quarterly report from Microsoft there are posts like
"They are hiding numbers because they are at loss"
"Microsoft is funding Xbox division from their pocket"
Meanwhile they are posting higher profits then PlayStation division. And as people on GAF told me, profits are most important metric 😂

But on the more serious note.. I think that Sony chasing GAAS is direct response to profit margins. Microsoft has Minecraft, Sea of Thieves and soon also Call of Duty and they are making quality money even years after release. And Sony needs that too.
It's a good thing Xbox can sweep their acquisitions under Nadella's rug and not report them.
BWDxfu3.jpg
 
Console Wars - The thread.

I will never understand why people care about the sales of these mega corporations. They are irrelevant to you and none of these brands care about you, they only want your money. What is the point of such threads? Lol.
 
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StreetsofBeige

Gold Member
Saw this posted on twitter a while ago...... what are they spending over xbox that accounts for that huge of a disparity... VR mainly? Are there accounting tricks that would put their operating profits in the positive for Xbox, like offloading certain costs onto a different division of Microsoft
F6f7njqXkAABsen
Well look at that.

Turns out MS makes more profits and margin than Sony.

So for all the armchair quarterbacks saying MS loses money and So y blows them out of the water for profits remember that chart.

And don’t forget that just because a company doesn’t disclose all data doesn’t mean it’s bad (MS doesn’t want to tell publicly so it means bad numbers). Apple doesnt disclose profitability per product line either. All Mac, phone, watches and iPods profits are lumped into one vague number.

Considering how little profit Sony makes on that amount of sales, it’s not even worth keeping the division around. Those are bad margins for a division skewed to tons of digital sales and third party cuts.
 
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Puscifer

Member
I mean no shit, I'm not even a game pass fan because there's not a lot that interest me but there's clearly a market for people who want a subscription service for games and they found it.
 

Woopah

Member
Well look at that.

Turns out MS makes more profits and margin than Sony.

Considering how little profit Sony makes on that amount of sales, it’s not even worth keeping the division around. Those are bad margins for a division skewed to tons of digital sales and third party cuts.
A lot of that revenue is because Sony counts 100% of third party digital and microtransaction sales as revenue. So their profit margin isn't as bad as it looks.
 
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