i need help

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vincedea

Senior member
May 5, 2010
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So i have a presentation tomorrow and I was wondering how do i example my part i need a bit of help.

So im going to be taking about gross profit margin and the 2 companies iw ill be talking about is EA and Activision. Their gross profit margin are 58% and 72% respectively.

my professor wants me to explain: why is Activision's gross profit margin bigger than EA's and what can Activision do with that? also what does it mean for EA?

Any help would be greatly appreciated
 

busydude

Diamond Member
Feb 5, 2010
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Activision's main income is their Call of Duty series(You might want to double check on that). If you look at the games they develop, they invest very less on graphics and image quality. Their games look like shit, they spend most of the money on marketing.

You might also do some research on the breakdown of sales of console titles vs PCs.. as profit margin for consoles is pretty damn high compared to PCs.
 

vincedea

Senior member
May 5, 2010
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Activision's main income is their Call of Duty series(You might want to double check on that). If you look at the games they develop, they invest very less on graphics and image quality. Their games look like shit, they spend most of the money on marketing.

You might also do some research on the breakdown of sales of console titles vs PCs.. as profit margin for consoles is pretty damn high compared to PCs.

Ok cool i will check on that. Also what could i say about EA being lower and how that can affect them?
 

busydude

Diamond Member
Feb 5, 2010
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Ok cool i will check on that. Also what could i say about EA being lower and how that can affect them?

EA has been on M& A spree for the past few years and its portfolio is pretty diverse. It is like the mitsubishi of the gaming industry.
It developes / publishes a ton more games than Activision.
 

RbSX

Diamond Member
Jan 18, 2002
8,351
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So i have a presentation tomorrow and I was wondering how do i example my part i need a bit of help.

So im going to be taking about gross profit margin and the 2 companies iw ill be talking about is EA and Activision. Their gross profit margin are 58% and 72% respectively.

my professor wants me to explain: why is Activision's gross profit margin bigger than EA's and what can Activision do with that? also what does it mean for EA?

Any help would be greatly appreciated

Shit son, this is basic stuff which you can find on a Google search, but then again your grammar and spelling is atrocious, so....
 

z0mb13

Lifer
May 19, 2002
18,106
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Here's a hint: look at what goes into COGS (cost of goods sold) for both companies, and compare them side by side.
Gross margin is NOT the same as operating margin.
You can look at the company filings since they are public companies.
 
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