Diluted Dante wrote:Are you a vulnerable customer?
afgavinstan wrote:Re: tax-avoidance
In-game spending, including mobile purchases, should reach 50% of industry revenue by 2019, up from about 35% last year, according to projections by Goldman Sachs reported by Barron's. Meanwhile, the fastest growing revenue source for Activision and EA is in-game spending
These trends promise to send game makers' profit margins yet higher. The virtual goods called items typically have very small development costs, and thus represent almost pure profit, per Barron's. As a result, it is much more profitable for the game makers to extend the lives of old games by adding opportunities for in-game spending, than it is to introduce new games. New games can have high development and marketing costs, meaning that a flop can be a financial disaster.
Another profit-enhancing trend is the move towards downloads of games over the internet, which do not have the manufacturing and distribution costs associated with sales of games on physical discs. In the second quarter, Activision derived 80% of its revenue from low-cost digital sales, Barron's adds. Mobile gaming is another growth area. EA produces roughly $650 billion of annual revenue from mobile, Barron's indicates, about 13% of total revenues, per Investopedia data.
Operating margins for these companies during their most recent fiscal years are, per Investopedia data: Activision, 23%; Take-Two, 11%; and EA, 28%. O'Shea tells Barron's that EA is on track to exceed 40% in the next few years, up from 10% in fiscal 2013
Yossarian wrote:An operating margin of 10% sounds incredibly low to me. Maybe I’m wrong?
Yossarian wrote:An operating margin of 10% sounds incredibly low to me. Maybe I’m wrong?
poprock wrote:Actually, here’s something I’ve never thought about before: Y’know how movie studios set up new shell companies for each production? So that many of the risks against a movie are just against that movie? Do games work that way now, too? I mean, they don’t seem to …
Dark Soldier wrote:My confession: I'm getting rid of Fifa 18 because I spunked £150 in total on FUT since release (lied in the thread due to that darling shame), and I could see it being way more. I had a gambling addiction when younger (fruit machines like a mug) and could feel the same pull with Fifa Points, the risk/reward. Was starting to justify in my head spending £50 every couple weeks on points for packs, which as anyone knows it won't just be £50 after a short while. And this from someone who doesn't even play it online, so it was completely pointless.
So either I'm a mug for not just going nah mate I won't bother, or such things are fucking ridiculous for those with the inclination. If I'd been unemployed still, bye bye my benefits each week. Its why I never used to buy Fifa, and why I won't again
Dark Soldier wrote:My confession: I'm getting rid of Fifa 18 because I spunked £150 in total on FUT since release (lied in the thread due to that darling shame), and I could see it being way more. I had a gambling addiction when younger (fruit machines like a mug) and could feel the same pull with Fifa Points, the risk/reward. Was starting to justify in my head spending £50 every couple weeks on points for packs, which as anyone knows it won't just be £50 after a short while. And this from someone who doesn't even play it online, so it was completely pointless.
So either I'm a mug for not just going nah mate I won't bother, or such things are fucking ridiculous for those with the inclination. If I'd been unemployed still, bye bye my benefits each week. Its why I never used to buy Fifa, and why I won't again
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