The end of Sony and Microsoft are very close.
Earlier this year, a report came out that investors wanted Microsoft to get out of unprofitable secotrs (video games being one) and focus more on Windows. Now, Microsoft is investing 500 million dollars in advertising alone. Now, think to yourself: what will happen if Kinect fails? Well, those investors might get upset with Microsoft. They may just dump their stock. Microsoft did just lose a heck of a lot of money on a silly attachment to the 360. That is a huge amount of money. Do you think Microsoft will continue the videogame pursuit after that? Probablty not.
And look at Sony. They had 3 years of loses with the PS3. They are just now trying to recoupe the loses. But the sales are not strong enough to make back the money. And most of Sony's recent experiments have failed. The PSPGo failed. The Move is failing. Are they just going to keep throwing good money after bad? Esspecially after they just had a restructuring.
Here's the truth. How long are these companies going to keep investing in areas where they only lose? How long will investors put up with it. Remember, these comapnies are not game companies. Video games are not their primary source of income. But they have been the primary source for loses.
It is wishful thinking to beleive their is a future for the Playstation and XBox.
Look at the recent sales trend at NPD and Media create ohhh!!!
Yup! you are right they are indeed losing.