Location: In the bowels of Xbox LIVE
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 07-08-2009, 09:05 PM
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lowlylowlycook wrote:

JCRooks wrote:

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Anyway, discussions about businesses should be more than just citing a few numbers. Same goes for NPD and VGC data. They're all just interesting data points, to be used in a broader discussion. Like I mentioned earlier, even NPD is missing a large chunk of information (digital distribution), so it too needs to be taken with a grain of salt.
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Well people don't (yet) download consoles which could be considered the most important numbers to track.
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Are console numbers really the most important? I think it's just a small part of the industry, especially when you consider so much of gaming is done on PCs and, increasingly, on the web.
Additionally, you've got the thorny situation where the three console holders (MS, Sony, and Nintendo) are all quite different than each other when it comes to their financial situations and their reasons for being in the industry. Nintendo is obviously the most straightforward. Their primary revenue comes from gaming and that's what their main focus is on. Sony and MS are much more complicated. To simplify things, if Sony were to lose a lot of money on the PS3 but more than make it up with Blu-ray royalties and sales, then they might be fine with that, and it might be a good thing for the company overall. (As it turns out, that didn't happen, of course, but c'est la vie)
Anyway, that's why I think that the console sales numbers, in particular, are quite tricky to discuss. It isn't the apples-to-apples comparison that some people think it is. Most people in the business and tech industry understand this, but a lot of gamers haven't quite grasped that yet (which is fine, they're not supposed to).
lowlylowlycook wrote:

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As far as I remember, people don't download current gen games that are sold at retail, PSP aside. Ironically, we don't know much about retail PSP sales outside of Japan. Or DS retail sales for that matter.
When we get good revenue or profit/loss numbers they include any DD titles or sales. It's not like EA is secretly profitable because they can sell DLC for their titles. Neither is Nintendo secretly hurting because they don't do as much DLC as some others.
DD is probably a big deal for PC games but we don't sales number for retail PC games either.
I'd say that DD is a blind spot, regrettably one of many, but I don't think that DD causes any info we do get to be less reliable. I seriously doubt that it is nearly as important as the lack of data outside the monthly top 10 in the US.
No doubt it will become more important over time.
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Well ultimately, it's the financial statements which can shed a lot more light on things such as digital distribution and the revenue gained from it. I don't think it causes information to be less reliable, but it means the information we have is less complete than it already is. But yeah, I think we all agree that DLC, subscriptions, microtransactions, etc. are all going to be driving increasing amounts of revenue/profit in the long-term.
Brainiac 8 wrote:

This is the reason I come here. I enjoy talking to you guys about the industry as a whole, and in most cases, we at least try to keep it away from the same flamewar arguments you find elsewhere.
I actually really enjoy most of the conversations we have. 
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Yup! I find it helpful for my line of work as well. Keeping tabs on the business side of things, and having folks to discuss it with, has been very helpful! It may be surprising to some of you, but talk of things like NPD and sales isn't that common here at work. I guess that makes sense ... we're busy working on the product and engineering, leaving it (mostly) to management and the business folks to figure out the financial side of things. That said, I'm finding that having some knowledge of the business-side of things, and being able to talk intelligently about it to my peers (often enlightening them!), has been very helpful and I'm thankful to you guys for that! |
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