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> As I said the figures I got were from the company financial reports, I
> read the FT every day.
>
> The reason that the Xbox is making money despite the loss on hardware
> is that it has the highest tie ratio of all the consoles. That means
> that it has the highest average amount of games sold per console. On
> average every Xbox owner has 5 games or something compared to 4.2 for
> the GC and 4 for the PS2. Something like that.
>
> Nintendo are not making money on the GC. Definitely not.
> http://www.reuters.co.uk/
> newsArticle.jhtml?type=topNews&storyID=3812829
>
> If you can be bothered to read that you will also see I was wrong
> about it being Nintendo's biggest lost since 1962. They went public
> in 1962. No this was in fact their first ever interim loss. This time
> last year they made about £150 million profit in the same
> period.
Fair enough - you're the man with the knowledge where that's concerned. I was just pointing out that sales-wise, the GameCube is doing better than the Xbox.
Also there are several types of profit. There is operating profit, or EBITDA (earnings before interest, tax, depreciation, and amortisation) profit and bottom line profit. It it possible to make an operating profit but to find that the bottom line is a loss. Which several years ago meant that whilst Nintendo had a big operating profit, they had much smaller bottom line profit when all the charges and exceptions were taken into account.
Nintendo just made an operating loss. They announced it. And that is bad.
When Nintendo boasted being the best profitable games company a couple years ago (they still do now) with EA being second, then Sony, etc, Reuters were reporting Nintendo making huge losses.
Now I know Nintendo are likely to exaggerate to please their shareholders, but I think the shareholders would notice if the share value was rapidly dropping whilst Nintendo are claiming top performance.
Hence, I don't trust Reuters.
Just leave it :-D
The reason that the Xbox is making money despite the loss on hardware is that it has the highest tie ratio of all the consoles. That means that it has the highest average amount of games sold per console. On average every Xbox owner has 5 games or something compared to 4.2 for the GC and 4 for the PS2. Something like that.
Nintendo are not making money on the GC. Definitely not.
http://www.reuters.co.uk/ newsArticle.jhtml?type=topNews&storyID=3812829
If you can be bothered to read that you will also see I was wrong about it being Nintendo's biggest lost since 1962. They went public in 1962. No this was in fact their first ever interim loss. This time last year they made about £150 million profit in the same period.
Sales figures, however, suggest that Nintendo are doing better worldwide than Microsoft - and quite cleanly too. Obviously (regarding total units sold) they're triumphing massively in Japan and have now overtaken in Europe. America, truth be told, I'm not entirely sure about but the sales figures for October show the GameCube outselling the Xbox by 78,000 consoles. Considering there's never been much between the two in the USA, if you add all this up it seems that Nintendo are the one's winning second place on a worldwide scale.
The Xbox is now making money.
These figures are from the company financial reports.
All I read was that the Cube had taken a 25% Euro market shar and was doing better than it was in the USA
*grabs Maverick and runs at high speed*
Playstation 2s sold: 1.4m units
Xbox: 460,000 units
GameCube: 350,000 units (Nintendo units including GBA and GBASP sales: 1.2m units)
It is fair to say in a non-fanboyish way that Microsoft are still struggling to compete against Nintendo.
I'm not going to make a comparison between Sony and Nintendo however because PS1s are still being sold and haven't been included in these figures.