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> I like to point out that the AAA game developers have never turned higher profits than they are right now. Activision Blizzard is reporting over 4 billion (y
by pcwalton 6y ago
> I like to point out that the AAA game developers have never turned higher profits than they are right now. Activision Blizzard is reporting over 4 billion (yes, ‘B’ billion) dollars in profits.
In 2019 ATVI made $1.5B profit on $6.5B revenue, down YoY from the previous year. During the same year Google made $34B on $161B of revenue, up YoY from 2018. Apple similarly had a gross margin of about 38% on $89B of revenue.
Relative to companies that actually are making profits hand over fist, I find it hard to muster any outrage toward labor-intensive entertainment businesses.
- falcolas 6y agoI was looking at the gross profit figures, since we’re explicitly talking about the cost of making video games - not marketing or executive/corporate costs. > Activision Blizzard annual gross profit for 2019 was $4.395B But, even with “only” $1.5B profit they’re doing pretty amazing - that’s just shy of a 25% profit/revenue split. That’s better than Google, which I’m sure you realized. And if billions of dollars of profit isn’t “hand over fist” money, I don’t know what is.
- deleted 6y ago[deleted]
- willis936 6y agoThose are companies that are in every facet of everyone’s life. That’s like comparing the profit of a local ranch to Kellogg. The revenue of big game publishers comfortably puts them in the top 10 most profitable media companies, competing with massive conglomerates.