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

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

1 min read


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


  1. dreamhunk

    July 31, 2009 at 14:49

    they were losing billions on consoles in the first place!mircosoft and sony are dumb enough to enter the console market when meny companies have gone bankupt over console from history.


  2. Lupus

    July 31, 2009 at 19:10

    I’m not sure you know what you are talking about. Sony entered the console race back in the 90’s when they were approached by Nintendo to make a CD Based console, Ninty pulled out and Sony birthed the PS One, that was 14/15 odd years ago, so they’ve been around the block a few times and are not n00bs trying to get a foot in.
    Microsoft entered in the console market in 2002 with the original Xbox which was not as successful as the king PS2 but it wasn’t a write off like the Gamecube was, so they’ve also been around a good solid 7 years now. It’s not like they entered the Console market last year and said lets make a console. They’ve been around and yes are having a little difficulty but it’s due to the recession not due to the consoles being unpopular like the Dreamcast, Saturn, 3DO, Jaguar, Lynx and Gamecube.


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