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Nintendo has officially made more profits with Nintendo Switch(2017-2020) than Sony Gaming division with Playstation 4(2013-2020)

ZoukGalaxy

Member
No joke.
Considering the premium price of everything "Made in Nintendo", well, no surprise.
They can sell you cardboard and people call it "Genius !"

And I'm saying that as an huge fan of Nintendo since my (poor) childhood but "I see can the light".

Saying this, I'm much more thankful to Sony and its PSVR taking real risk than to Nintendo with an obsolete hardware at launch...
 
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Keihart

Member
I mean, whatever the devs cost are...33 fucking million units in only 1 platform. Get fucking dunked. That ladies and gentlemen it's having some good ass first party games for everyone.

Keep diggin' Jimbo
iu
 
Saying this, I'm much more thankful to Sony and its PSVR taking real risk than to Nintendo with an obsolete hardware at launch...
PSVR is "real risk" compared to launching an underpowered hybrid handheld in the era of console power juggernauts and booming mobile gaming?

It obviously was the right call in hindsight, but nobody was sure that it would succeed right up until it did.
 
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Marvel14

Banned
Paging Z zedinen : please come to the Playstation defence desk immediately.

Both Sony and Nintendo are doing great and thats great for the videogames industry.

Sony can live with lower operating profits because of the higher spec machines and development costs they push. Theirs is a much more diversified company with many revenue streams. Nintendo doesn't have the luxury of taking persistent higher cost risks as a core business philosophy...
 

Marvel14

Banned
Nintendo is selling on Switch for full price games that they released on WiiU years ago...and they are selling as hot bread...so good for Nintendo I guess, bad for WiiU owners like me.

edit: damn, they are even selling ROMS of N64 and Game cube for 60 bucks and people are buying them. Nintendo can put the Nintendo logo on a dog shit and people will kill to buy it.

selling ancient hardware and repackaged games pays off.

Nintendo is not a competitor to Sony, despite how weird that sounds. They don’t overlap anywhere in terms of demographics and game design. Switch’s main forte is portability just like with many previous Nintendo handhelds that solidified that image. That’s why Vita never took off, that space and mind share is firmly in Nintendo’s hands.

Nintendo is in its own category. They recycle same franchises for thirty years that have widespread recognition but don’t push this medium forward in terms of audiovisual and gameplay mechanics system. They’re closer to Lego than to Sony Interactive Entertainment or Xbox game division.

But if you’re Sony, it can be demoralizing (IDK how could it be not) to see someone with so little effort, minimal workforce and just lazy work outsell you so much when you poured heart and soul working 12 hours a day for years to create something like Uncharted 4, Spiderman, GoW or TLOU 2.

Isn't it odd that a porting machine with lower hardware specs, sold at an inflated price is more lucrative?

Genius move Nintendo, after the "timed availability Mario ports", you have proven that your user base will eat shit from you and be happy about it.

The Wii U's sales performance would like a word with all of you.
 

Panajev2001a

GAF's Pleasant Genius
The Wii U's sales performance would like a word with all of you.
The trick does not always work ;)?

Edit: Look, I personally liked the Wii U (I do like my Switch a lot too) and I found the controller ergonomic and it gave gameplay opportunities (collaborative gameplay / in game assists) that I do miss and I think Nintendo never really properly took far enough. MiiVerse was incredibly cool for its time and the Stamps you could find in the games and the user messages also very cool. I liked having a second screen too.

The problem was that the HW was a bit underpowered and the OS really slow at everything and did not have much internal storage: it had lots of cool little bits integrated very poorly and you could support motion controls but needed to keep around additional Wiimote ones, lots of mess to have.
 
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pasterpl

Member
Whichever platform you support, own, everyone had to admit that this gen Nintendo is the king, 1st party software and hardware sales
 

Faithless83

Banned
The Wii U's sales performance would like a word with all of you.
WiiU had a bad name, a not so great controller and if it was portable from the getgo, it would have been the switch back then.
That's why it didn't sell. Does it makes the switch any less of an overpriced hardware? No.
If you set the price of hardware way higher than the cost, you'll have a nice profit in the end. Crazy, right?
 

e&e

Banned
No joke.
Considering the premium price of everything "Made in Nintendo", well, no surprise.
They can sell you cardboard and people call it "Genius !"

And I'm saying that as an huge fan of Nintendo since my (poor) childhood but "I see can the light".

Saying this, I'm much more thankful to Sony and its PSVR taking real risk than to Nintendo with an obsolete hardware at launch...
Huge Nintendo fan - Sony took real risk (after not being the first to launch into VR) so they are better than Nintendo that was “doomed” before launching Switch (something that has never been done before). Sure, we believe you! 👍🏾
 
Sony took real risk (after not being the first to launch into VR) so they are better than Nintendo that was “doomed” before launching Switch (something that has never been done before)

gaming on a tablet, copyright by Nintendo
 

Cyborg

Member
Nice for Nintendo.

The perfect combination to own are these two brands (PlayStation + Nintendo) heck they almost made a console together.
 

Nezzeroth

Member
I've ended up enjoying my Switch more than I thought I would, not gonna lie. Being able to play Nintendo's handheld franchises on a TV is great.
 

Interfectum

Member
I've ended up enjoying my Switch more than I thought I would, not gonna lie. Being able to play Nintendo's handheld franchises on a TV is great.
Switch would be my main platform if they just invested in better hardware performance. The frame rate and resolution issues kill a lot of the enjoyment for me....
 

ZoukGalaxy

Member
Huge Nintendo fan - Sony took real risk (after not being the first to launch into VR) so they are better than Nintendo that was “doomed” before launching Switch (something that has never been done before). Sure, we believe you! 👍🏾
[ Nintendo_fanboy_detected(upset_on_critics=true)]
[ Salty(in_progress=true) ]

Who said Sony are better ?
looking where are you GIF by The Academy Awards

Sony is alone on consoles VR: open your eyes ?

*looking at bunch of Wii U port to Switch*
Sure, doomed as usual, we believe you 🤘
Brady Bunch K GIF
 
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yurinka

Member
The numbers have been released
Sony PlayStation division operating profits in Q3 = 0.767 billion USD vs Nintendo 2.18 billion USD

That quarter PlayStation reached an all-time high of $8.45B Revenue in a single quarter, a new record for the industry. First time any platform holder ever reached $8 Billion in a single quarter in gaming history.

PlayStation reached an all-time high of 22.74B Revenue in 2020 (while Nintendo did $13.36B) and set a new record for the industry for a calendar year.

PlayStation generates way more money than Nintendo, but they reinvest it in more and more expensive games, and in more expensive, cutting edge technology.

It isn't the same a brand new high end AAA than an emulated old game. So these games are less profitable. It isn't the same to sell high end hardware at a loss to have a competitive price than to sell an overpriced cheap low end hardware, it's less profitable. Sony also decides to invest in very expensive game download and streaming services, server costs and sign deals to have games there aren't cheap, it's obviously less protitable than carboard and plastic figurines. Same goes with VR, they invest in the future and these R&D costs aren't cheap.

Regarding the current year/quarter, they also released a new console. Traditionally that meant to have loses each time they released a new one due to marketing and R&D costs. This year instead they had their record operating profit, thanks to the insane digital revenue (digital games, dlc, apps, PS+, PS Now) and because PS5 had the best launch any console ever had:

fhZK17j.png


CY 2020 (Sony means its gaming division):
-Sony Revenue - $22.74B
-Nintendo Revenue - $13.36B

-Sony Operating Profit- $3.33B
-Nintendo Operating Profit- $5.88B

TLDR: Sony makes way more money than Nintendo, in fact makes more money than any other platform holder ever did. But it's less profitable than Nintendo because Sony reinvests this money thinking in the long term with expensive, cutting edge technology and software.

They invest it in having more brand new games, and in more expensive and cutting edge hardware, games and services than Nintendo. And well, this quarter Sony also released a console selling it at a loss. And that console had the best selling launch quarter of any console in gaming history.
 
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Jaruru

Member
That quarter PlayStation reached an all-time high of $8.45B Revenue in a single quarter, a new record for the industry. First time any platform holder ever reached $8 Billion in a single quarter in gaming history.

PlayStation reached an all-time high of 22.74B Revenue in 2020 and set a new record for the industry for a calendar year.

PlayStation generates way more money than Nintendo, but they reinvest it in more and more expensive games, and in more expensive, cutting edge technology.

It isn't the same a brand new high end AAA than an emulated old game. So these games are less profitable. It isn't the same to sell high end hardware at a loss to have a competitive price than to sell an overpriced cheap low end hardware, it's less profitable. Sony also decides to invest in very expensive game download and streaming services, server costs and sign deals to have games there aren't cheap. Same goes with VR, they invest in the future.

Regarding the current year, they also released a new console. Traditionally that meant to have loses each time they released a new one due to marketing and R&D costs. This year instead they had their record operating profit, thanks to the insane digital revenue (digital games, dlc, apps, PS+, PS Now):

fhZK17j.png


FY 2020 (Sony means its gaming division):
-Sony Revenue - $22.74B
-Nintendo Revenue - $13.36B

-Sony Operating Profit- $3.33B
-Nintendo Operating Profit- $4.96B

TLDR: Sony makes way more money than Nintendo, makes more money han any other platform holder ever did. But it's less profitable than Nintendo because Sony reinvests this money thinking in the long term. They invest it in having more brand new games, and in more expensive and cutting edge hardware, games and services than Nintendo. And well, this quarter Sony also released a console selling it at a loss. And that console had the best selling launch quarter of any console in gaming history

The difference between Operating Profit and Revenue is NOT only about development, it also includes advertisement, operation costs, etc etc

Nintendo could be smart when spending on development, ads, operation, etc... or all of them.
 

yurinka

Member
The difference between Operating Profit and Revenue is NOT only about development, it also includes advertisement, operation costs, etc etc

Nintendo could be smart when spending on development, ads, operation, etc... or all of them.
True.
 
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fart town usa

Gold Member
My relationship with the switch is weird. One the one hand I can see that it has a ton of games, great ones too. On the other hand, I have no desire to play it, lol.

Not a knock against the Switch, just my personal experience with it.
 

Bodomism

Banned
That quarter PlayStation reached an all-time high of $8.45B Revenue in a single quarter, a new record for the industry. First time any platform holder ever reached $8 Billion in a single quarter in gaming history.

PlayStation reached an all-time high of 22.74B Revenue in 2020 and set a new record for the industry for a calendar year.

PlayStation generates way more money than Nintendo, but they reinvest it in more and more expensive games, and in more expensive, cutting edge technology.

It isn't the same a brand new high end AAA than an emulated old game. So these games are less profitable. It isn't the same to sell high end hardware at a loss to have a competitive price than to sell an overpriced cheap low end hardware, it's less profitable. Sony also decides to invest in very expensive game download and streaming services, server costs and sign deals to have games there aren't cheap, it's obviously less protitable than carboard and plastic figurines. Same goes with VR, they invest in the future and these R&D costs aren't cheap.

Regarding the current year/quarter, they also released a new console. Traditionally that meant to have loses each time they released a new one due to marketing and R&D costs. This year instead they had their record operating profit, thanks to the insane digital revenue (digital games, dlc, apps, PS+, PS Now) and because PS5 had the best launch any console ever had:

fhZK17j.png


FY 2020 (Sony means its gaming division):
-Sony Revenue - $22.74B
-Nintendo Revenue - $13.36B

-Sony Operating Profit- $3.33B
-Nintendo Operating Profit- $4.96B

TLDR: Sony makes way more money than Nintendo, in fact makes more money than any other platform holder ever did. But it's less profitable than Nintendo because Sony reinvests this money thinking in the long term with expensive, cutting edge technology and software.

They invest it in having more brand new games, and in more expensive and cutting edge hardware, games and services than Nintendo. And well, this quarter Sony also released a console selling it at a loss. And that console had the best selling launch quarter of any console in gaming history.
Resetera user made a mistake there with the chart. He used CY2020 instead of FY2020/21(9 months)

Playstation CY2020 operating income
Q1 - $0.421bn
Q2 - $1.153bn
Q3 - $0.988bn
Q4 - $0.767bn
Total - $3.329bn

Nintendo CY2020 operating income

Q1 - $0.923bn
Q2 - $1.378bn
Q3 - $1.396bn
Q4 - $2.183bn
Total - $5.88bn
 
If you didn't own the WiiU, the Switch is a great console.

As someone who loved my WiiU, my Switch has largely been collecting dust.

Struggling Nintendo is best Nintendo, this lazy approach is profitable but disappointing. I wish we had double the original titles, rather than them relying on so many ports. We haven't even had a new Mario Kart.
I was a day one Wii U owner and own a complete Wii U library and I absolutely love my Switch.
 

yurinka

Member
Resetera user made a mistake there with the chart. He used CY2020 instead of FY2020/21(9 months)

Playstation CY2020 operating income
Q1 - $0.421bn
Q2 - $1.153bn
Q3 - $0.988bn
Q4 - $0.767bn
Total - $3.329bn

Nintendo CY2020 operating income

Q1 - $0.923bn
Q2 - $1.378bn
Q3 - $1.396bn
Q4 - $2.183bn
Total - $5.88bn
Ok, I'll fix it. But well, the point is still the same: Sony generates way more money/revenue but reinvest a bigger portion of them, leaving less for profits.
 
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e&e

Banned
Resetera user made a mistake there with the chart. He used CY2020 instead of FY2020/21(9 months)

Playstation CY2020 operating income
Q1 - $0.421bn
Q2 - $1.153bn
Q3 - $0.988bn
Q4 - $0.767bn
Total - $3.329bn

Nintendo CY2020 operating income

Q1 - $0.923bn
Q2 - $1.378bn
Q3 - $1.396bn
Q4 - $2.183bn
Total - $5.88bn
Just mind boggling at Nintendo and the park isn’t even open yet! COVID might temper the coming profits for a while I think though.
 

Amiga

Member
good sign for the gaming industry that competitors can earn big profits without the need to monopolize the market.
 

Hugare

Member
Proffitable Nintendo is Lazy Nintendo

My Switch is collecting dust here. Bowser's Fury was awesome, but it was basicaly a DLC.

A lot of ports from great old games such as Tropical Free, Pikmin and Mario, but I wanted more effort with first party releases.

3rd party support was great during the first years, but now it's kinda eh
 

GeorgPrime

Banned
No joke.
Considering the premium price of everything "Made in Nintendo", well, no surprise.
They can sell you cardboard and people call it "Genius !"

And I'm saying that as an huge fan of Nintendo since my (poor) childhood but "I see can the light".

Saying this, I'm much more thankful to Sony and its PSVR taking real risk than to Nintendo with an obsolete hardware at launch...

Its the "Apple" factor.

Having a good name that people love... lets you increase price of shit dramatically.
 

Bodomism

Banned
No sane person would compare revenue numbers when profits result is available.

Smell like someone is trying to make a certain company sound more positive than what they really are.
 
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God Enel

Member
Bought a switch yesterday just for MK8 to play with friends

and donkey kong tf (and some other games)
 
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zedinen

Member
Under US GAAP Sony is obligated to treat R&D as an expense on the statement of P&L. And PS invests in R&D more than Nintendo...

PS has generated more free cash flow than Nintendo since FY13. Yes, Sony could have bought Capcom or Square Enix. Or Zenimax.

Free Cash Flow (FY13 - FY19)
PlayStation ¥1.1 trillion
Nintendo ¥572.5 billion


585de978fc45720bac5aefc9fa2a5f5d43444310.jpg


c43d4e9a7fb2328074022eacc796fca942ff5f67.jpg
 

S0ULZB0URNE

Member
Under US GAAP Sony is obligated to treat R&D as an expense on the statement of P&L. And PS invests in R&D more than Nintendo...

PS has generated more free cash flow than Nintendo since FY13. Yes, Sony could have bought Capcom or Square Enix. Or Zenimax.

Free Cash Flow (FY13 - FY19)
PlayStation ¥1.1 trillion
Nintendo ¥572.5 billion


585de978fc45720bac5aefc9fa2a5f5d43444310.jpg


c43d4e9a7fb2328074022eacc796fca942ff5f67.jpg
/thread
 

Bodomism

Banned
Under US GAAP Sony is obligated to treat R&D as an expense on the statement of P&L. And PS invests in R&D more than Nintendo...

PS has generated more free cash flow than Nintendo since FY13. Yes, Sony could have bought Capcom or Square Enix. Or Zenimax.

Free Cash Flow (FY13 - FY19)
PlayStation ¥1.1 trillion
Nintendo ¥572.5 billion


585de978fc45720bac5aefc9fa2a5f5d43444310.jpg


c43d4e9a7fb2328074022eacc796fca942ff5f67.jpg
Comparing cash flow when profit and profit margin results exist. We have reach a new low lmao 😂
 
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Zeeko

Neo Member
Comparing Nintendo 3 years just of the switch sales to 7 years of PS sales (which would include massive costs for advertising, production R&D etc for the PS4 & PS5)
 

Marvel14

Banned
WiiU had a bad name, a not so great controller and if it was portable from the getgo, it would have been the switch back then.
That's why it didn't sell. Does it makes the switch any less of an overpriced hardware? No.
If you set the price of hardware way higher than the cost, you'll have a nice profit in the end. Crazy, right?
Yes but Nintendo is the only large company that is exclusively a video game maker.

The lack of diverse revenue streams means they cannot afford hardware to be a loss leader. They need to make a profit to keep a fat wad of reserves to be able to fend off any hostile takeover bid..
 
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johntown

Banned
Switch is a great system but of course Nintendo will make more money. They are using cheaper outdated hardware so they don't have to sell at a loss, they never offer sales on games even if they are 20 years old and they shake down streamers for the money they make.

A better comparison would be to compare Sony to Nintendo as I believe the graph was Nintendo as a whole and not just Switch sales.
 

Jagz

Member
More reason for Sony to bring their PlayStation exclusives to PC and turn the PC in to their 2nd platform and revenue stream, like how Microsoft are doing.
 

Hezekiah

Banned
No sane person would compare revenue numbers when profits result is available.

Smell like someone is trying to make a certain company sound more positive than what they really are.
No sane person would dedicate their GAF account to talk accounting, and also have themselves labelled as a troll by the mods 🤡.
 

Faithless83

Banned
Yes but Nintendo is the only large company that is exclusively a video game maker.

The lack of diverse revenue streams means they cannot afford hardware to be a loss leader. They need to make a profit to keep a fat wad of reserves to be able to fend off any hostile takeover bid..
So they are innocent for reselling wiiu games at 60 and overcharging for the Switch, because they have to fend off hostile takeover?

Here's the Sony revenue by division:

hud5sWm.png


Clearly the gaming division is doing a LOT of heavy lifting, yet they are selling PS5 at a small loss.
At launch the estimated cost to make a switch was 257USD, keep in mind that this was back in early 2017. I'm willing to bet it sits around 200 or less now. No price cuts since then and sells a lot.

Poor innocent Nintendo, fighting for their lives. We have to do something! Quick, buy another WiiU game for 60 bucks! They must be really desperate to create the artificial scarcity of Super Mario 3d Collecion! We must buy 2 copies!! :messenger_loudly_crying:
 
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