Sony, Nintendo and Microsoft losing money – It’s a race to the bottom

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BurningMoney

So the world financial crisis has finally hit the Recession Proof gaming industry with all three console manufacturers reporting a drop in sales and income.

First up we have Sony who have reported a 48% drop in revenue with the gaming department bringing in $1.16 Billion.

Next up is Nintendo who are reporting a 40% drop in revenue to $2.65 Billion.

Microsoft is a little more complicated as they don’t report on the gaming division but rather as an entertainment division including the Zune and Mediaroom departments. This division reported a 25% drop in revenue down to $1.19 Billion

So to sum it up, Sony made the least money and experienced the biggest drop. Nintendo made the most money and had the second highest drop and Microsoft had the smallest decrease but only made $300 million more than Sony.

Only $300 million, I don’t think I will ever be able to say that without freaking out.

I think all of the companies are a little worried right now but with an end in sight for the recession and some awesome titles coming out on all three platforms I don’t think any of them are panicking just yet.

It’s also interesting to note that Nintendo are the only company who reported a profit in their gaming divisions, both Sony and Microsoft reported losses after all things were taken into account.

Source: Gamasutra (Xbox) & Gamasutra (PS3) & Gamasutra (Wii)

Last Updated: July 31, 2009

Gavin Mannion

I for one welcome our future robotic overlords

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