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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 -- Henry Photocopies or faxes of my signature are not binding. This email has been signed with an electronic signature in accordance with subsection 7(3) of the Electronic Communications Act 2000. Digital Key Signature: GPG RSA 0xFB447AA1 or 0x3184D537 Thu Feb 24 09:23:37 GMT 2011
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