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Top ten biggest video games companies by revenue

Fat Frog

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And what if they sell less consoles than last gen and the 'play anywhere' stuff just doesn't take off?

What then?

What if all the billions and billions spent result in no ground taken, not a single percentage point of market share gained? What will they do then?

They'll keep buying studios and growing.
Currently, Microsoft is like...


Buying Bethesda was like peanuts... They've shown Google and Amazon who was the boss and from now they'll start their third round against Sony ( stronger than ever)


@ Sonyfans
It's not about selling more consoles than Sony.
It's about being everywhere Series X, S, PC, Gamepass, Xcloud, BC etc.

Microsoft is a monster, it's just facts (i don't post on Xbox community threads, i'm a Sega fanboy) Nothing to laugh about...
 
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Bernd Lauert

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In this case, we already know why Nintendo turns a high profit: it spends way less than Sony on hardware and software development.
Nintendo only does gaming and spent $775m on R&D in 2020. How much did Sony spend on strictly gaming? I couldn't find a number but you seem to know more.
 
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Bryank75

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They'll keep buying studios and growing.
Currently, Microsoft is like...


Buying Bethesda was like peanuts... They've shown Google and Amazon who was the boss and from now they'll start their third round against Sony ( stronger than ever)

Bethesda were looking for a buyer.... most publishers are not.

No Japanese pub is going to sell to an American company, see the discussion in the latest Defining Duke episode. A partnership... possibly, at most.

Also that cash is for the entire company and they have debts of 55 Billion, so they are not going to spend over 50 billion on anything and I doubt they will spend over 10 billion on gaming without seeing big gains.

But I'm interested in who you think they'll buy!
 

Bryank75

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Well, i don't care. I just know they announced they will continue acquisitions... so they will. Their current portfolio of studio is already impressive.

Funny, it seems to be all about the acquisitions, not the games.

The reason I'd be excited for an acquisition is due to the games it brings, the possibilities.... but I don't get that from you. You seem to just be interested in the flex.
 

Fat Frog

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Funny, it seems to be all about the acquisitions, not the games.
You don't get it. I don't care about Microsoft... ;)

I'm just saying that massive acquisition = tons of games = tons of new revenues, customers etc...

Simple.

Microsoft is a monster. I'm not saying, they are better than Sony, Nintendo or anyone. But they have great weapons to be even more important for the upcoming years.
 
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Bryank75

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You don't get it. I don't care about Microsoft... ;)

I'm just saying that massive acquisition = tons of games = tons of new revenues, customers etc...

Simple.

Microsoft is a monster. I'm not saying, they are better than Sony, Nintendo or anyone. But they have great weapons to be even more important for the upcoming years.

No company has enough money to just waste and buying studios doesn't make revenue when you are putting it on a service that costs next to nothing, while having very limited sales to actually create revenue. So I don't understand where you will get the revenue from....

As I said, when you consider debt.... many other companies have a comparable amount that they could use to make acquisitions. Even Sony is approaching 50 billion in cash and due to them having low debt could raise tens of billions, pushing possible acquisitions up to nearly 100 billion. They're no joke.

Microsoft has a crazy market cap, that is a result of the top few companies being used for indexed funds all the time.

Microsoft has a monopoly in their industry that was never addressed properly by oversight mechanisms, they have never succeeded in any real business outside that though. Strategically Sony have run rings around MSFT.... the latest Anime moves were very clever due to Square, Capcom, kadokawa and Namco all having massive dependency on Sony for anime distribution and licenses...which they are all involved in.
 
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Fat Frog

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No company has enough money to just waste and buying studios doesn't make revenue when you are putting it on a service that costs next to nothing, while having very limited sales to actually create revenue. So I don't understand where you will get the revenue from....

As I said, when you consider debt.... many other companies have a comparable amount that they could use to make acquisitions. Even Sony is approaching 50 billion in cash and due to them having low debt could raise tens of billions, pushing possible acquisitions up to nearly 100 billion. They're no joke.

Microsoft has a crazy market cap, that is a result of the top few companies being used for indexed funds all the time.

Microsoft has a monopoly in their industry that was never addressed properly by oversight mechanisms, they have never succeeded in any real business outside that though. Strategically Sony have run rings around MSFT.... the latest Anime moves were very clever due to Square, Capcom, kadokawa and Namco all having massive dependency on Sony for anime distribution and licenses...which they are all involved in.
Microsoft will loose revenues from Playstation owners (some will never jump in) but on the other hand they'll gain new revenues from Xbox gamepass, PC, or Xclouds.
Overall, Bethesda's investment will pay sooner or later.

I don't disagree with you about Sony's anime policy. That's smart.
But didn't convince me that MSFT has easily the possibility to reduce the gap.



Finally... Why are you always laughing ? Is it nervous ?
 
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Bryank75

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Microsoft will loose revenues from Playstation owners (some will never jump in) but on the other hand they'll gain new revenues from Xbox gamepass, PC, or Xclouds.
Overall, Bethesda's investment will pay sooner or later.

I don't disagree with you about Sony's anime policy. That's smart.
But didn't convince me that MSFT has easily the possibility to reduce the gap.



Finally... Why are you always laughing ? Is it nervous ?

jack nicholson joker GIF by Maudit


Life's been good to me!
 

Hobbygaming

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I agree that they could come from anywhere it's just the likely ones are unlikely this time around. Forspoken and ff16 are realisticly just timed exclusives. Kena is releasing this year and ghost wire tokyo will go everywhere after the exclusivity period. No idea on oddworld but Guilty Gear Strive I'm sure will spread it's wings to other platforms this gen. The whole did ps gamers not enjoy Judgment comment is the same reasoning to get rid of all exclusives though. Short term exclusivity seems to be Sony's new stance which I can understand to an extent since most of a games money comes from the initial sales for big budget games.
PS will be fine there will be plenty AAA titles from 1st and 3rd party there always is
 
Jan 29, 2019
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Microsoft is a monster. I'm not saying, they are better than Sony, Nintendo or anyone. But they have great weapons to be even more important for the upcoming years.
Yes they're a big player and they cannot be ignored, however, they also fail pretty often at whatever it is they're doing, and you should keep that in mind.

Given the number of studios I would be surprised if there wasn't a few very interesting titles, the problem is we don't know if/how MS will screw the games up.
 

peter42O

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Just imagine how much more money Sony will make when they start releasing their exclusives on PC day one.
 

Fat Frog

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Yes they're a big player and they cannot be ignored, however, they also fail pretty often at whatever it is they're doing, and you should keep that in mind.
I didn't MSFT was God...

For the moment, i just think Phil Spencer has a pretty solid strategy and overall is doing a good job with Japanese publishers. Let's see how he'll handle the new Studios.
 

93xfan

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Feb 23, 2013
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Sony bigger than Nintendo and Microsoft combined? Nice.

So good, right?

With that lead, they’re learning:

-closing Evolution Studios and Team ICO doesn’t hurt them
-BC beyond PS4 doesn’t matter
-shutting down servers within 2 years of release us okay (gravity rush 2)
-$70 games can be the norm

Was a PlayStation fan since PS1. Glad to see their loyal fans still care about what’s important
 

Bryank75

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Big difference between the two sources for tencent
It's unclear if they used old numbers or if it was the way they break down the revenue.

Tencent is also in a lot of social media which could be included in games depending on definition or how someone sees it..... really depends on methodology.
 

jroc74

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And what if they sell less consoles than last gen and the 'play anywhere' stuff just doesn't take off?

What then?

What if all the billions and billions spent result in no ground taken, not a single percentage point of market share gained? What will they do then?



They'll keep buying studios and growing.
Currently, Microsoft is like...


Buying Bethesda was like peanuts... They've shown Google and Amazon who was the boss and from now they'll start their third round against Sony ( stronger than ever)


@ Sonyfans
It's not about selling more consoles than Sony.
It's about being everywhere Series X, S, PC, Gamepass, Xcloud, BC etc.

Microsoft is a monster, it's just facts (i don't post on Xbox community threads, i'm a Sega fanboy) Nothing to laugh about...


Both of these posts together equals stop selling hardware tho. Thats an option that wont waste any of their acquisitions. And they can still make future acquisitions.
 

smithg5

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Revenue is far more important than profits because it takes into account how much money you actually have to invest in your business. The only people who care about profits are shareholders.

Wow, I’m suddenly starting to understand our disconnect in that other thread. Let me know how your business plan to invest your zero profit back into your business goes. That sounds fascinating.
 
Dec 2, 2018
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Wow, I’m suddenly starting to understand our disconnect in that other thread. Let me know how your business plan to invest your zero profit back into your business goes. That sounds fascinating.
If I invest my profit in my business it's not reported as profit anymore, dumbass
 
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Petaya Berry

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These Sony numbers include their mobile games, right?

Fate/Grand Order (which is better than any Playstation game) have great numbers.
 

smithg5

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If I invest my profit in my business it's not reported as profit anymore, dumbass

Your claim was that you can look at your revenue and know how much money you have to invest in your business. Your money leftover after your operations (to invest or whatever you want to do with it) is by definition profit. Profit informs what you have to invest, not revenue. It’s literally the opposite of what you said.

How it’s reported is a technicality, it doesn’t change the essence of what’s happening.
 
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Dec 2, 2018
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Your claim was that you can look at your revenue and know how much money you have to invest in your business. Your money leftover after your operations (to invest or whatever you want to do with it) is by definition profit. Profit informs what you have to invest, not revenue. It’s literally the opposite of what you said.

How it’s reported is a technicality, it doesn’t change the essence of what’s happening.
Money spent on R&D, which is investing in your business, is not profit. Money spent on paying employees, which is investing in your business, is not profit.
 

smithg5

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Money spent on R&D, which is investing in your business, is not profit. Money spent on paying employees, which is investing in your business, is not profit.

Where did the money come from then? If I make a widget with $5 of material and $5 of labor, and sell that widget for $10 (thats $10 revenue and $0 profit), how do I have any money to spend on hiring or R&D (assuming I want to keep going and make another $10 widget)?
 
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reksveks

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Where did the money come from then? If I make a widget with $5 of material and $5 of labor, and sell that widget for $10 (thats $10 revenue and $0 profit), how do I have any money to spend on hiring or R&D (assuming I want to keep going and make another $10 widget)?
You go to a bank and tell them that you have a revenue of 10 now but you can grow it to 100 whilst increasing margin.

This ain't new for companies. It's impossible to take that strategy out of the equation
 
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Fat Frog

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On top of that, Sega confirms its quality standards for the entire generation. (several times highest ranking among game publishers)

Metacritic publishers ranking 2020
Sega : #1



Good time for Sega Fanboys. : fap fap :

The King is back.

(total win for Haruki Satomi, the new CEO)
 
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smithg5

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You go to a bank and tell them that you have a revenue of 10 now but you can grow it to 100 whilst increasing margin.

This ain't new for companies. It's impossible to take that strategy out of the equation

Oh, do you mean a profit margin? That’s my entire point, just one step added.
 
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smithg5

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yeah but it's a pretty big and important step.

Sure, borrowing capital is important in business.

However, it’s completely unrelated to my point that profit is what allows you to invest in your business. Even in your example the bank only supplied cash because of the promise of profit from sales.

Some companies might perpetually break even or lose momey on paper because of their growth, but they are generally making money on each sale, otherwise banks and investors won’t be willing to bring cash.
 

reksveks

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Sure, borrowing capital is important in business.

However, it’s completely unrelated to my point that profit is what allows you to invest in your business. Even in your example the bank only supplied cash because of the promise of profit from sales.

Some companies might perpetually break even or lose momey on paper because of their growth, but they are generally making money on each sale, otherwise banks and investors won’t be willing to bring cash.
Profit (at a single point of time) isn't important as much as the perceived future profitability for your business in terms of raising money.

I think you are focusing more so on the present profits of a company in comparison to the banks/venture capitalists/stock market.
 

Captain Toad

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Yeah but Nintendo make more profits

They sure do. They invest 30% of what the compete invests into making their games, use hardware that's two generations behind the competition and manage to charge multiple times more for their games.

If there's any question which company is best at using games just to make profit, there's no question, it's Nintendo. There's also no question it's at the consumer's expense.
 
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Loope

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Funny, it seems to be all about the acquisitions, not the games.

The reason I'd be excited for an acquisition is due to the games it brings, the possibilities.... but I don't get that from you. You seem to just be interested in the flex.
He just said he doesn't care about Microsoft.
 

phil_t98

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They sure do. They invest 30% of what the compete invests into making their games, use hardware that's two generations behind the competition and manage to charge multiple times more for their games.

If there's any question which company is best at using games just to make profit, there's no question, it's Nintendo. There's also no question it's at the consumer's expense.

The consumer is lapping up Nintendo consoles and games, where is it at the expense of the consumer?
 
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Captain Toad

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The consumer is lapping up Nintendo consoles and games, where is it at the expense of the consumer?

I mean that Nintendo has managed to keep their games at $60 for years and years when games on any other hardware are sub $20, or just given out for free, despite Nintendo games costing a fraction to produce.

And don't give me, "well, that means Arms and Skyward Sword must be better games than God of War or Halo".
 
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phil_t98

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I mean that Nintendo has managed to keep their games at $60 for years and years when games on any other hardware are sub $20, or just given out for free, despite Nintendo games costing a fraction to produce.

If people want them they will pay for them, Nintendo see value in their own games where as other company’s devalue their games very quickly. There is no right or wrong way to do it just one is way is more profitable. As a company Nintendo is doing it right
 

Captain Toad

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If people want them they will pay for them, Nintendo see value in their own games where as other company’s devalue their games very quickly. There is no right or wrong way to do it just one is way is more profitable. As a company Nintendo is doing it right
I don’t disagree. As fans, we are taking it in the ass, but as a company I would hope to achieve the same.
 

phil_t98

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I don’t disagree. As fans, we are taking it in the ass, but as a company I would hope to achieve the same.
As a fan you have a choice, not taking it in the ass. There are multiple waused to buy games. Can wait for sales, buy second hand. Not everything has to be bought at full cost. Then there’s another company that is causing a stir over raising the prices of their games.

nobody has to buy at that price either.
 

phil_t98

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I thought we were talking about Nintendo games....

I was talking about games in. General, I spoke about company’s practices and how one was more profitable

ok and to be fair another company is trying to go down the subscription route with its games, still dont have to do that and can still buy games in sales and second hand cheaper
 
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Woopah

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Revenue is far more important than profits because it takes into account how much money you actually have to invest in your business. The only people who care about profits are shareholders.
That's not completely true. For instance, you could have very high revenue, but you might not have much left for CapEx if your direct costs were also very high.
 
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