HD consoles are bad for business

April 16, 2011

http://www.neogaf.com/forum/showpost.php?p=27163793&postcount=32

“Many companies do, yes. ActivisionBlizzard, EA’s largest competitor (EA is Dice’s parent publisher) is one of only a few profitable “major” third party in the west over recent years and lists PC/MMO as their largest segment of revenue at 23% of total:

http://files.shareholder.com/downloads/ACTI/1225926632x0x440234/15fed731-0b27-46c1-9212-e2b4deb8fbeb/Q4%20CY10%20Press%20Release%20Final.pdf

Zynga is a company that did not even exist when the Playstation 3 launched, and is now worth more than Electronic Arts almost exclusively through PC games:

http://mashable.com/2011/02/18/zynga-10b-valuation/

By contrast, Electronic Arts, a company that is clearly focused on PS3/360 as their primary revenue drivers, has lost ~2.25 Billion dollars in the last 3 years, and hemorrhaged more than 3,000 jobs, which be like Nintendo firing 60% of their entire company:

http://investor.ea.com/results.cfm

I just want to make sure that everyone understands that the focus on PS3/360 has been absolutely terrible for third party publishers in general, destroyed profitability and lost thousands of jobs. It doesn’t mean the PC is a panacea — nor is the iPhone, or particularly the Wii, etc. — but it’s really difficult to argue that the PS3/360 have been very good to publishers’ profits.”

- frod out

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