Yeah it is. You make sure your revenue exceeds your operating costs, leaving profit. That's literally the bottom line.
Isn’t that what I have said earlier? revenue is what they see first because revenue will pay their bills and expenses and those expenses will reflect on your bottom line, which is profit.
What I referencing to black and white is, just because Nintendo is profiting more it doesn’t mean Sony is not as successful because we are not seeing the expenses of both companies. Different business model. What’s working for Nintendo will not work for Sony and vice versa.
Profit IS revenue after the costs have been deducted.
But keep reaching.
reaching? do you even know what you are talking about?
Where in my post indicating that I don’t know that profit is the bottomline after you consider all the expenses?
It’s even in my first post that you quoted.
That’s why I even ignored your first quote because lower cost with their revenue means more profit. no shit Sherlock.
But on what expense to reduce their revenue in the future? A move that will affect their future profits? Do you think Sony is getting scared now because Nintendo is gaining more profit than them and they have to change their business model to react to Nintendo’s record breaking profits? Sony will now need to reconstruct, stop being aggressive with promotions and pricing? Stop reducing their price on their games? So they can match or exceed Nintendo’s profit?
Sony would like to grow. That’s why you see them ramping up their ps devs. Spending a lot on their marketing and promotions and lastly we don’t know how much they are spending in exclusive deals and r&d. That is an expenses that will add on their OPERATING COST.
Do guys even know what a higher revenue even means? Revenue = sales.
If Sony is breaking records in revenue it means they are massively selling their products. That revenue is also compose of 3rd party software, dlc and micro-transactions and that’s what 3rd party will look at.
Higher revenue can also mean they can spend more money. Some of you really need to stop downplaying what huge revenue means to a company because most of the time you don’t know what you are talking about. I mean some of you think Sony is doing bad. The face palm on some of the post here.
Take your fanboys goggles off and you will see both are successful.
And both doesn’t need to react if your business is doing good on their current model.