NxtVertexNxtVertex

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Samsung’s new foldable hinge may have a prettier appearance, but it probably won’t last much longer.

    March 3, 2023

    Silvergate concern causes a 5% drop in the price of bitcoin in 60 minutes.

    March 3, 2023

    The Biggest Gaming News For February 26, 2023

    March 1, 2023
    Facebook Twitter Instagram
    • Tech
    • Gadgets
    • Mobiles
    Facebook Twitter Instagram Pinterest VKontakte
    NxtVertexNxtVertex
    • Home
    • Tech

      Despite a massive decline in PC demand, Nvidia is still making billions in Q4 2023.

      February 26, 2023

      Snapchat has introduced fresh features called “Sounds” to simplify content creation.

      February 23, 2023

      Spotify has introduced a new feature called “DJ” that provides personalized music with commentary generated by artificial intelligence (AI).

      February 23, 2023

      The custom news application Artifact, created by the co-founders of Instagram, is now available to the general public, along with new enhancements.

      February 23, 2023

      Google and Mercedes collaborate to integrate YouTube and Maps into their vehicles.

      February 23, 2023
    • Mobiles

      Samsung’s new foldable hinge may have a prettier appearance, but it probably won’t last much longer.

      March 3, 2023

      The newest Nokia phone from HMD is made to be repaired quickly.

      February 26, 2023

      What is the Galaxy Watch’s strap size? How to Select the Best Band

      February 20, 2023

      The Xiaomi 13 Ultra concept renders reveal the future Leica flagship.

      February 19, 2023

      Please, Apple, do not remove all of the buttons.

      February 19, 2023
    • Gaming
    • Gadgets
    • Crypto
    • How To
    • About Us
    • Contact
    NxtVertexNxtVertex
    Home»Gaming»Sony earns a ‘discounted margin’ on Call of Duty sales and profits from the PlayStation.
    Gaming

    Sony earns a ‘discounted margin’ on Call of Duty sales and profits from the PlayStation.

    The CMA discovered that Sony takes a 'discounted margin' on Call of Duty sales/earnings on PlayStation, giving Activision a bigger income cut.
    NxtvertexBy NxtvertexFebruary 20, 2023Updated:February 20, 2023No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    MW2_Launch_CEA_X1_Wire_Hero_16x9-fd687e9075dac5ccc465
    IMAGE CREDITS: [Xbox Wire]
    Share
    Facebook Twitter LinkedIn Pinterest Email

    According to regulators, Sony offers Activision preferential treatment because of Call of Duty’s relevance in the PlayStation ecosystem and current marketing arrangements.

    Call of Duty continues to be the most difficult obstacle that Microsoft and Activision face in completing their merger. Call of Duty’s impact on the PlayStation and Xbox industries has been exhaustively scrutinised by regulators, and the consensus opinion is that the franchise has a considerable and very tangible impact on both systems. This is especially true for Sony, which leads the console market because to its strong hardware foundation and multibillion-dollar ecosystem of products and services.

    In recent files, the Competition and Markets Authority of the United Kingdom unearthed some intriguing data about Call of Duty on PlayStation. According to the CMA’s appendices and glossary for their provisional conclusions report, Sony actually offers Activision a larger revenue split for all Call of Duty game sales and earnings produced on the PlayStation platform.

    Sony is said to take a “discounted margin” on Call of Duty earnings made on PlayStation, implying that Activision is not receiving the standard 70-30 split (the standard revenue sharing ratio is that game developers and publishers keep 70% of all earnings, while platform owners like Sony, Microsoft, and Nintendo take a 30% cut). The precise ratio between Activision and Sony is unknown, but this approach is not unusual in the business.

    For example, Steam provides top-earning titles a larger share of revenue. If a game makes between $10 million and $50 million, Valve reduces its revenue portion (also known as royalties) to 25%.

    Given the importance of Call of Duty to Sony’s annual earnings, it only makes sense for Sony to offer Activision a better agreement. According to the CMA, Call of Duty is one of PlayStation’s top three highest-earning and most-played games. We’re guessing the other two games will be something like Fortnite, which is very certain, and Apex Legends or Genshin Impact.

    Even with this discounted margin, we’ve already calculated that Activision games produced more than $1.32 billion on PlayStation systems in 2021.

    This is the amount kept by Activision, not the total amount produced by Activision games. It’s unclear how much of this was earned by Call of Duty, but it’s likely that a large amount of the earnings came from Call of Duty game sales and monetization.

    Sony claims that if the merger goes through, it will most likely not honour the discounted margin rates because it will provide Microsoft, a close competitor, more money on an annual basis.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Nxtvertex
    • Website

    Related Posts

    The Biggest Gaming News For February 26, 2023

    March 1, 2023

    Next month, the laid-back eco-strategy game Terra Nil will launch on Steam and Netflix.

    March 1, 2023

    Despite a massive decline in PC demand, Nvidia is still making billions in Q4 2023.

    February 26, 2023

    Greatest Campaign Ever in Destiny 2 Is Free Till Lightfall

    February 25, 2023
    Add A Comment

    Leave A Reply Cancel Reply

    Editors Picks

    Silvergate concern causes a 5% drop in the price of bitcoin in 60 minutes.

    March 3, 2023

    The Biggest Gaming News For February 26, 2023

    March 1, 2023

    Next month, the laid-back eco-strategy game Terra Nil will launch on Steam and Netflix.

    March 1, 2023

    Despite a massive decline in PC demand, Nvidia is still making billions in Q4 2023.

    February 26, 2023
    Top Reviews
    9.1

    Review: Mi 10 Mobile with Qualcomm Snapdragon 870 Mobile Platform

    By Nxtvertex
    8.9

    Comparison of Mobile Phone Providers: 4G Connectivity & Speed

    By Nxtvertex
    8.9

    Which LED Lights for Nail Salon Safe? Comparison of Major Brands

    By Nxtvertex
    Advertisement
    Demo
    NxtVertex
    Facebook Twitter Instagram Pinterest
    • Home
    • Tech
    • Crypto
    • Gadgets
    • Mobiles
    © 2023 Nxtvertex. All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.