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[JayWood2010]

Minecraft, Halo, Xbox Live, Havoc, Gears of War, and Forza will be their big driving force, but im sure games like Ori, Killer Instinct, Sunset Overdrive, etc has helped them achieve this too. Microsoft has been smart as of late and I can see now why they're reporting Xbox Live numbers considering how big it is for them.

Congrats Microsoft

 

[Usobuko]

Tencent is the great wall of China for foreign companies trying to make a dent in that market.

Pick Tencent or don't bother.

Activision with CoD, Capcom with Monster Hunter, King with Candy Crush, Mixi with Monster Strike etc.

 

[4Tran]

They own Crossfire and League of Legends, two of the biggest online games in the world.

Don't they own Dungeon Fighter Online as well? The only reason why Tencent isn't well known outside of Asia is because they've decided to keep a low profile.

For the rest, Microsoft being a bit ahead of Sony in revenue is a bit surprising, but not overly so. Everything else is within expectation.

 

[Eos]

Wow never expected nexon to be that big

 

[etta]

Req packs

lol

Didn't they recently aquire Havok?

Yea, I overlooked that, too.

Microsoft has their hand in quite a few honey jars.

 

[Shepard]

Kinda surprising not seeing Valve up there.

 

[Madao]

Nintendo has fallen pretty hard. not even top 10 these days.

 

[travisbickle]

Interesting, doesn't fit the narrative I read here a lot.

Yeah, the total game-software revenue narrative on GAF would lead you to think differently.

Every day I read GAF's narrative on total game-software revenue.

 

[DriftingSpirit]

Now do one for profit. The rankings should look pretty different for the big 3.

 

[jvm]

Can anyone tie to these numbers from...NewZoo? I can't derive them.

Not sure what they're doing. Here are two example numbers using calendar year.

King
1H14: $1.252 billion
1H15: $1.132 billion

The figures reported in NewZoo's report are $1.2 billion and $1.06 billion. Did they try to parse out the amount reported which wasn't game-related? I can't recall that King has that much that isn't game-related. And did they try to figure it out on a GAAP basis? I'm not sure how to do that -- King reports bookings, I believe.

 

[NoMoreTrolls]

Yeah, the total game-software revenue narrative on GAF would lead you to think differently.

Every day I read GAF's narrative on total game-software revenue.

Yep. This is the fifth thread that I've seen polluted with Revenue-gate posts. Dammit, GAF!

 

[MaulerX]

So if I spend $100m making a product but only make $60m back that's still consider revenue? Huh...and here I though revenue was meant for the money you make AFTER you already gain enough money to cover the initial cost.

Edit:Oh that's right I was confusing it with profits silly me.

Which is why alot of people were impressed with Microsoft's last quarterly report. Their revenue actually went down and yet their profits still went up. Which is a sign of a pretty lean operation.

 

[pastrami]

Don't they own Dungeon Fighter Online as well? The only reason why Tencent isn't well known outside of Asia is because they've decided to keep a low profile.

For the rest, Microsoft being a bit ahead of Sony in revenue is a bit surprising, but not overly so. Everything else is within expectation.

Dungeon Fighter Online is Nexon. And yeah, Tencent has bought some major Western studios, but they tend to stay out of the news for the most part. Huge in China though.

 

[soundscream]

This confuses me since I'm not a business owner or a banker.

Can something be called revenue even if the revenue that you just made doesn't cover for the cost of making said revenue?

Because last time I checked Microsoft hasn't made a dime on the Xbox division since they created the division and brand/games.

You don't look at profit or revenue on a cumulative basis, it's yearly (quarterly actually). To put it simply if your business makes 10 million in profit year one, but you loose 4 million a year for the next 2 years you don't go "well I'm still 2 million in the black.".

 

[Dubz]

How is Valve not on this list?

 

[jroc74]

That's just flat out not true. Division began turning in profitable quarters a few years into the 360's life, especially after Kinect came out.

But revenue is total amount of money pulled in without subtracting expenses. It's a good measure of who's doing the most business, not the "best" business. Amazon, for example, pulls in mountains of revenue, but I don't think they've ever turned a profit.

MS owns Minecraft, Havok, the Windows store, and XBL subs/content/DLC. There is a constant stream of revenue coming into the Xbox division even when no new games are released by MS as a publisher.

Sony with that 12% yoy growth, that's pretty good. And Microsoft has so much other business besides Xbox One that would go under games, that they are obviously going to continue to be one of the biggest players in the years to come.

.

 

[impact]

How is Valve not on this list?

because of their two games one is free and the other is dirt cheap and they only take like 10-15% of market transactions which is what those games thrive off of. and all of the high tier skins are sold through means other than steam market due to the ridiculously stupid $500 market limit

 

[Chronoman]

Nintendo has fallen pretty hard. not even top 10 these days.

Yes, they are not top 10 in estimated rankings.

It also has to be said that Nintendo makes 75% of its game profits during the holidays which have yet to start.

 

[jvm]

Yes, they are not top 10 in estimated rankings.

It also has to be said that Nintendo makes 75% of its game profits during the holidays which have yet to start.

Not sure if joking, really.

They're 8th by 12-month period revenue in that table. So bottom half of the top 10...

 

[CrimsonEclipse]

This confuses me since I'm not a business owner or a banker.

Can something be called revenue even if the revenue that you just made doesn't cover for the cost of making said revenue?

Because last time I checked Microsoft hasn't made a dime on the Xbox division since they created the division and brand/games.

People still think this?

That's just flat out not true. Division began turning in profitable quarters a few years into the 360's life, especially after Kinect came out.

But revenue is total amount of money pulled in without subtracting expenses. It's a good measure of who's doing the most business, not the "best" business. Amazon, for example, pulls in mountains of revenue, but I don't think they've ever turned a profit.

MS owns Minecraft, Havok, the Windows store, and XBL subs/content/DLC. There is a constant stream of revenue coming into the Xbox division even when no new games are released by MS as a publisher.

Sony with that 12% yoy growth, that's pretty good. And Microsoft has so much other business besides Xbox One that would go under games, that they are obviously going to continue to be one of the biggest players in the years to come.

.

 

[Miles X]

Yes, they are not top 10 in estimated rankings.

It also has to be said that Nintendo makes 75% of its game profits during the holidays which have yet to start.

This really is bollocks as well. (Not that anybody is talking about profits ... this is revenue)

Last year in the US for instance the WiiU sold 679k~ Jan - Sep, in Oct - Dec it sold 873k.

56% of WiiU's for the year sold in the holiday.

Jan - Sep XB1 sold 1.68m, Oct - Dec 2.68m, over 60% of XB1's sold in the holiday.

I have no figures for Software obviously, but it's obviously tied close to hardware performance, add in the fact most third party games launch in this Q as well as most of Microsofts first party.

 

[bishoptl]

Software, not hardware. Or have you forgotten about the Minecraft acquisition? Climb down off your crucifix.

Yeah, the total game-software revenue narrative on GAF would lead you to think differently.

Every day I read GAF's narrative on total game-software revenue.

Yep. This is the fifth thread that I've seen polluted with Revenue-gate posts. Dammit, GAF!

ho ho ho

 

[Granadier]

League of Legends owners.

Didn't realize they owned 93% in Riot. God damn.

 

[1st Course]

How is Valve not on this list?

Private company.

 

[CrimsonEclipse]

Just came to thought, if MS released more of their big franchies besides whats coming (halo wars, Sea of Thieves, etc) to PC such as Halo and Forza...they would be making a lot more money.

Would be a smart thing for them to do from a business perspective.

 

[Miles X]

Just came to thought, if MS released more of their big franchies besides whats coming (halo wars, Sea of Thieves, etc) to PC such as Halo and Forza...they would be making a lot more money.

Would be a smart thing for them to do from a business perspective.

Give it time, they're totally gonna be the first to fold from the console race and put up a true competitor to Steam.

Of course then they'll lose all those XBLive subs ....

 

[RoKKeR]

Just came to thought, if MS released more of their big franchies besides whats coming (halo wars, Sea of Thieves, etc) to PC such as Halo and Forza...they would be making a lot more money.

Would be a smart thing for them to do from a business perspective.

Only a matter of time, we are seeing it even now. Gears Remastered, Sea of Thieves, Halo Wars 2, to name a few upcoming big ones...

 

[4Tran]

Just came to thought, if MS released more of their big franchies besides whats coming (halo wars, Sea of Thieves, etc) to PC such as Halo and Forza...they would be making a lot more money.

Would be a smart thing for them to do from a business perspective.

It may be good for Xbox, but it doesn't do much for the overall company. That's always been the problem with Microsoft and gaming: the video game segment eats up a lot of resources but generates tiny amounts of profit compared to the more important segments.

 

[1st Course]

Dungeon Fighter Online is Nexon. And yeah, Tencent has bought some major Western studios, but they tend to stay out of the news for the most part. Huge in China though.

Tencent is Dungeon Fighter China's publisher. They share revenue with Nexon.

 

[JayWood2010]

Just came to thought, if MS released more of their big franchies besides whats coming (halo wars, Sea of Thieves, etc) to PC such as Halo and Forza...they would be making a lot more money.

Would be a smart thing for them to do from a business perspective.

Within time I do believe PC+Xbox will be more integrated.

 

[1st Course]

Well with recent developments Activision should be #2 now

 

[jroc74]

Well with recent developments Activision should be #2 now

Just saw this...

http://www.neogaf.com/forum/showthread.php?t=1133993

This came out of left field. Waaaaay out of left field.

 

[Heretic]

Go MS Go!

 

[alexandros]

How is Valve not on this list?

It's not a publicly-traded company.

 

[Bishop89]

Must be due to all those halo digital sales

 

[jroc74]

Must be due to all those halo digital sales

 

[element]

Tencent owns League of Legends which is probably one of if not the most profitable game in the industry. They also own 40% of Epic Games and I thought they've heavily invested into Activision/Blizzard.

Tencent own 92.78% of Riot Games and 48.4% of Epic Games. Not to mention minority stakeholder in GLU Mobile and Pocket Gem. They also operate QQ which is a huge IM platform with gaming in China.

 

[Outrun]

Must be due to all those halo digital sales

The Sodium on that thread....

Like others have said, it really highlights the volume of business that MS does.

 

[ScatheZombie]

Tencent is the great wall of China for foreign companies trying to make a dent in that market.

Pick Tencent or don't bother.

Or NetEase, or Perfect World, or The9, or Giant, or Shanda.

 

[Alo0oy]

Minecraft, Halo, Xbox Live, Havoc, Gears of War, and Forza will be their big driving force, but im sure games like Ori, Killer Instinct, Sunset Overdrive, etc has helped them achieve this too. Microsoft has been smart as of late and I can see now why they're reporting Xbox Live numbers considering how big it is for them.

Congrats Microsoft

None of those games are relevant except for Minecraft, Gears, & Halo. Xbox Live is not considered software, Havoc isn't owned by the gaming division (& any revenue from it - while significant - isn't enough to change anything), Forza isn't a big seller.

Most of that revenue is from Minecraft & Royalties from third party games.

 

[Kagoshima_Luke]

Sega be like:

 

[Alo0oy]

How is Valve not on this list?

They're a private company.

Valve's estimated revenue in 2014 was 1.5 billion, H1 revenue should be approximately 700 million (it should be lower since H2 tends to have much higher revenue than H1), which would put it at #14, just below Nintendo & Mixi Inc.

 

[Sakujou]

its interesting to see that neogaf, the self-proclamed hardcore fans of gaming never heard of tencent.

its chinese, yes, but that name has been floating around for a while, especially if you have read business-relevant news such as you can find on neogaf.

chinese/korean companies still seem not to be quite well known.
nexon is also a quite big name from south korea, which were responsible for ragnarok and some other games...

 

[Arkam]

Dungeon Fighter Online is Nexon. And yeah, Tencent has bought some major Western studios, but they tend to stay out of the news for the most part. Huge in China though.

Both are massive in Asia. Nexon is the industry leader in S. Korea (wide portfolio) and Tencent is a major player in China(& SEA) and slowly buying up interest in Western gaming market. Neither one should be discounted as anything other than major players. The Asian market has really evolved far beyond the Japanese focus of yore.

 

[7DollarHagane]

It's really funny to see konami punching alongside square enix, Facebook, take two, and dena, but STILL decide that the games market isn't worth it.

 

[4Tran]

It's really funny to see konami punching alongside square enix, Facebook, take two, and dena, but STILL decide that the games market isn't worth it.

Konami is just dropping their traditional boxed games. Most of their revenue came from mobile games and the like, and they're still making those.

 

[Alo0oy]

It's really funny to see konami punching alongside square enix, Facebook, take two, and dena, but STILL decide that the games market isn't worth it.

Those companies aren't as big as you believe (from the gaming side).

Take Two should be up there though, they're just under piss poor management.

 

[jjonez18]

Damn look at that YoY growth from WB. 75% and cracking the top ten. Showing some muscle in the gaming business.

 

[Familienoberhauptvogel]

Damn look at that YoY growth from WB. 75% and cracking the top ten. Showing some muscle in the gaming business.

Arkham Knight + Witcher 3 (and MKX) is all there is to it, unless they have something big for next year it will drop just as much

 

[Alo0oy]

Arkham Knight + Witcher 3 (and MKX) is all there is to it, unless they have something big for next year it will drop just as much

They probably have more to announce, their revenue probably won't be as high as this year, but it won't drop to 2014 levels either.