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Re: [LUG] 90,000,000

 

Previous email rejected, anyway

On Tue, Feb 22, 2011 at 01:14:23PM -0000, Simon Waters wrote:
> 
> Henry Bremridge wrote:
> 
> I assume this is effectively before tax profit by area. Interesting, I saw
> some discussion of how big Entertainment and Devices Division has become
> in terms of revenue, guess it is less profitable. Wonder if that is
> because they take a hit on the hardware upfront? Presumably the games
> console vendors walk a fine line between not wanting to release a must
> have upgrade, and wanting to release a must have upgrade if they subsidize
> hardware.

Revenue = Sales
Less Direct Costs = Operating Profit
Less Interest, Less Tax = Profit

To a certain extent the software drives the hardware choices. Which appears
to involve the following steps

-   You devise a game which uses swizzy new graphics
-   You design the hardware and sell it cheap to sell the game
-   You hope other providers design games for your machine and more
    importantly re-release old games for your machine
-   You can try and recover your costs for the initial games and hardware
-   Advertise like heck how brilliant you are


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Henry
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