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You guys are thinking just about you and not form the stock holders and company prespective.

What do you prefer:
1 - Have a company that actually makes profit on almost everything.
2 - Have company that has huge losses because you're selling goods for a lower price that it costs you.

I think the obvious choice is obvious.

And at Sony pushing boundaries this gen, shouldn't that be Nintendo? The Wii move is a 4 years late copy of the Wiimote, not the opposite. They just made a more powerfull and complex machine with a new media and sold it for a loss. I see no boundaries being pushed here...