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Discussion Starter #1
http://gamer.blorge.com/2008/10/26/a...-install-base/

Analysis: PS3 selling more games than Xbox 360 with smaller install base

The PS3 is rapidly becoming the bread-winner for many of the third party publishers. We wrote a story a few months ago where according to EA’s financial report the PS3 was the clear bread-winner over the Xbox 360 and the Wii. Now it seems that Konami, Namco Bandi and Ubisoft have joined the ranks of EA where the PS3 console is bringing in more money than the Xbox 360.


EA

In our previous story, we talked about how the PS3 is EA’s new bread-winner in terms of bringing home the bacon. According to EA’s previous financial statement, the PS3 accounted for about 17% of total revenue in comparison to the Xbox 360’s 10%. That is quite significant when considering that EA is the largest third party video game publisher in the world.

Namco Bandi

Namco Bandi is the largest third party publisher in Japan. According to the publisher’s recent financial statement, the PS3 currently moved approximately 57% more software than it’s direct competitor, the Xbox 360. Namco Bandi is sort of the EA of Japan, considering the amount of revenue it generates from software.

Konami

Konami is one of the top three publishers in Japan in terms of revenue. With the recent release of Metal Gear Solid 4, it is not all that surprising that the PS3 would have a larger piece of the pie. However, according to Konami’s recent financial statements, the PS3 accounted for a whopping 57.3% of the sales this past quarter, while the Xbox 360 accounted for only 2.6%. This changed from last year, when the Xbox 360 brought in more sales compared to the PS3.

UbiSoft

UbiSoft is considered to be one of the top three publishers in all of Europe. According to UbiSoft’s half year financial report (6 months 2008/09), the PS3 accounted for about 20% of the software sales compared to the Xbox 360’s 14%. Considering UbiSoft’s presence in Europe, this is quite a significant turn of event.

Wrap-up

It’s mind blowing that not only is the PS3 competing toe-to-toe with the Xbox 360, it is out performing the later in many of the instances. Considering that the Xbox 360 has a larger install base by 5 million, it looks like the PS3 is performing more efficiently in terms of sales for third party publishers.

Since 2005, when the Xbox 360 first launched with no competition, it seems that the PS3 has been steadily climbing in terms of the software sales. This pretty much means that the PS3 has been taking more and more potential Xbox 360 sales as time goes by. The future for the PS3 looks bright and healthy, however if the current trend continues the Xbox 360 might find itself struggling to compete in the market.
 

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Not really suprising. The PS3 is the more capable platform, and will prove its worth in the long run.

Of course, the fact that article doesn't consider is piracy. You can mod the 360 to play backups. The PS3 hasn't been cracked yet. That could easily explain the difference in sales...
 

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I don't have a 360 so I can't comment on how its online store compares with the PS Store, but I'm willing to bet that the PS Store generates a healthy amount of revenue for Sony. Sure, it's the big games like MGS, BioShock, etc.. that get all the attention and marketing dollars, but having small games you can buy for $5 - $20 and download from the comfort of your living room really strikes a great balance in terms of price and convenience for those people who may not buy many $50-$60 retail box games, IMO.
 

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It makes way more sense to me as well. What aren't you getting here? When PS3 titles are sold and shipped off to the retailers, the entire amount is classified as revenue. The XBox sales are spread out over a period of 6 months. Thus anytime there are PS3 releases, there will be large spikes in apparent revenue.
 

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First off, let me preface this by saying I too believe there's something at play; while PS3 has been leading XBox in hardware sales for virtually all of the past 10 months, there is just too big of a difference in installed base for PS to be winning in software sales.

I just don't think the blog posting on the Newsweek site properly captures it.

The posting refers to deferred revenue over six months, but does not imply that EA recognizes one as sold to distributor and one as recognized as sold to end-user. In fact it doesn't explain the difference at all. Anybody know for sure? It's kinda weird to me to have different accounting rules by platform, unless its tied somehow into the licensing arrangement with Microsoft.

The second point is that they point to titles that were more attractive to the EU market and gave them a sales boost. To me, that's reason to say that there is a valid reason for the saying PS sales are higher, not lower as the writer purports to do.
 

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I can't agree with this article, seems like a fanboy piece where he plays with the numbers enough to make the PS3 sound great. It only samples a few companies which would likely have an edge in the PS3 market. It's like a little kid in the playground playing a game and saying, "no no, you have to play with one hand, then hopping on one foot, with one eye closed... See, I told you I'd win!"

Look at Konami for example, PS3 has MGS vs 360 has DDR. It's literally Pulp Fiction John Travolta vs. Boogie Night's John Travolta.
 

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Discussion Starter #15
The newsweek article really only mentions "skewed sales in europe". Why would EA, Ubisoft, NB, and Konami track games sales differently on different consoles? That makes no sense. Why would they try to inflate ps3 sales figures? It doesnt benefit them. Its in their best interest to determine precisely which platform is performing best in order to budget their resources properly. EA also confirmed the ps3 as their lead platform, with Ubisoft making several game using the Ps3 as the lead platform as well.

http://www.vgchartz.com/forum/thread.php?id=36672

And yet the sales lead is all made up? Not single part of that newsweek article made real sense.
 

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Discussion Starter #16
I can't agree with this article, seems like a fanboy piece where he plays with the numbers enough to make the PS3 sound great. It only samples a few companies which would likely have an edge in the PS3 market. It's like a little kid in the playground playing a game and saying, "no no, you have to play with one hand, then hopping on one foot, with one eye closed... See, I told you I'd win!"

Look at Konami for example, PS3 has MGS vs 360 has DDR. It's literally Pulp Fiction John Travolta vs. Boogie Night's John Travolta.
Ubisoft is one of the top 3 game companies in Europe, EA is the number 1 world wide, and Konami/Namco Bandai are both in the top 3 in Japan. I dont see any problems with using 4 of the biggest game studios in the world as examples. How is that not valid?

What did you expect them to use? Bungie? Microsoft Studios? Square Enix (which hasnt put out a single PS3 game yet) Get real. Especially considering EA's strength in the US market (where the xbox has a strong lead) and Ubisoft strength in europe (where they are basically tied).

Oh yeah, and Konami also had Ninja Gaiden 2 for the 360. The article clearly mentions the effect of MGS4.

Sure they could have tried to get info from companies like Activision or Capcom. Have they announced yet? Does it even matter? Its not like a sales advantage for the 360 would be shocking, considering they do have an install base advantage.


Im actually surprised no one has mentioned that an obvious possible explanation for the PS3's sales lead is the fact that so many 360's break down.
 

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I wonder what impact the piracy issue has had on sales and will continue to have?

2 high publicity stories lately have been GOW2 and Fallout III both being leaked to torrents before they even shipped.

We know what piracy did to the PC gaming industry. Nobody pirates PS3 games because of Blu-Ray so they get 100% of their audience. I wonder what % of 360 users will just use a hot copy?
 

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Discussion Starter #19
I wonder what % of 360 users will just use a hot copy?
Or how big that 360 install base advantage really is considering RROD and other issues?
 

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Or how only about a quarter of the gaming companies were used... would the numbers be the same if Epic, Activision, Squaresoft or even Bungie (they are 3rd party now) were brought into the mix?

This is a case of selective stats, nothing more.... move along.
 
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