Plenty of data and interesting information has come out of the Federal Trade Commission court hearing over the proposed take over of Activision-Blizzard by Microsoft. One of those pieces of information is just how much money console manufactures and game development studios are making in terms of revenue from software. The data provided for 2021 shows that Nintendo is making far more revenue on first party video game sales compared to both Sony Interactive Entertainment (PlayStation Studios) and Xbox Game Studios. In 2021 Nintendo made $5.18 billion on software revenue alone, compared to Sony Interactive Entertainment ($2.1 billion) and Xbox Game Studios ($1.372 billion). It should be noted that Nintendo rarely offers substantial discounts on its first party games whereas both Sony and Microsoft discount their games fairly quickly here in the UK. Also first party games on Xbox consoles are included with an Xbox Game Pass subscription. Still, it is very impressive on Nintendo’s part as their software revenues are far higher than either of its rivals.
2021 Console Market Publishing Revenues
- Nintendo – $5.18 billion
- Electronic Arts – $4.508 billion
- Take-Two Interactive – $2.352 billion
- Sony Interactive Entertainment – $2.1 billion
- Activision-Blizzard – $2.072 billion
- Epic Games – $1.708 billion
- Ubisoft – $1.428 billion
- Xbox Game Studios – $1.372 billion
- Bandai Namco – $980 million
- (Others unlisted)
That’s obvious. They aren’t pushing visuals like the other two are and charge the same price.
What you are talking about is profit however this article is only speaking of revenue meaning that it accounts for the total income from software sales. the profit would have far less especially for the rest of them
@MO3 This is correct the article is talking about software sales not development cost. I have updated the headline to reflect this better 👍
That’s not the only reason. You have to look at sales figures to understand why Nintendo makes so much these days. The Switch is currently the third best selling gaming device (outside of PC) of all time. With all those people with a Switch in their household, Nintendo makes a ton of money on popular releases like Tears of the Kingdom for example.
Even if you combined PS5 and X-Box Series X sales its a mere fraction the number of sales the Switch has sold. In fact if they didn’t release their games on other platforms (mostly Steam) their numbers wouldn’t be as high as they currently are.
I’d rather have a game with standard graphics, but fun, than a game with amazing graphics and boring
You’re never gonna understand it, because in your mind graphic over everything.
On top of not selling their console at a loss, like I’ve heard Sony and Microsoft does? That adds to the revenue as well.
Dunno about how much each of them earns from online subscriptions
It would be cool to see a breakdown of the titles. My bet is that Mario Kart 8 is a huge contributor to this; that game has been an unstoppable money-printer for Nintendo for almost a decade now.
Microsoft Studios is doing pretty well despite a lack of noteworthy releases.
Game pass is a force.
Nintendo are far more controlling of their budgets than Sony and Microsoft. Even their games on Wii U made profit, we just don’t know if the console did or not (and no, there has not been actual confirmation they lost money on Wii U). The problem with the others is they prioritise cinematics and make large scale teams because lord knows why. If Sony continue down Microsoft’s road they will crash and burn because they can’t afford to throw cash reserves in a landmine like Microsoft can.
Nintendo is a force to be reckon with because guess who their target audience is? EREWHON. It’s the gaming console of choice for kids, parents, adults. There’s a reason why they don’t drop their prices overtime, they make great games that comes once, maybe two rarely, a console lifecycle.
I was shocked EA was so high, and then when you look at EA revenue 70% is from live service (DLC, micro transactions, card packs )- https://s22.q4cdn.com/894350492/files/doc_financials/2021/ar/400772(1)_30_Electronic-Arts_Combo_WR.pdf