http://www.vgchartz.com/hardware_totals.php?type=Software&sort=Total

This seems to suggest that the N64, Gamecube and GBA combined software totals were less than the PS1, so I don't understand your comment that Nintendo have been topping the software sales?

It didn't.  But you will still have tons of Nintendo fans say it did because they only look at the overall numbers, and it sounds like something impressive to boast about.  However, those numbers include the GBA, which is where Nintendo was making most of their money.

@ OP

It's crazy that the Xbox brand is still in the red.  I can see why some investors a few months back were saying MS should get out of the console business and focus on Windows.  I think MS sees now that they may have a shot at making the Xbox a profitable brand in the long haul.  Though, I do think MS will pull out if the NeXbox isn't recieved as well as the 360.

You can say the same with the PS4. M$ have the money to back up the the gaming division if it losses money but can Sony the do same. As whole company, Sony been in the red. Can Sony afford a few more Billions loss on the gaming division like they did with the PS3.

Would of thought Sony made more profit during the PS2 era

Also interesting, The first 11 years of PlayStation profits (up to the PS3) is slightly less than Nintendo's 2009 profits.

Indeed, It would seem that 2006 and 2007 would have been the first years the Xbox division would have been in black for a Fiscal year (had the RROD, etc. not occured on the scale that it did); the fact that they posted a total loss of $3.33 billion for those two years alone just shows you how much the whole debacle really costed (considering that number is including all profits from software sales and xbox live subscriptions).

I highly doubt either company will completely pull out of the gaming business or even the hardware business, just because of one failed console. These companies have major significance in the gaming industry and this gives increased value to their respective ecosystems...and nowadays it’s all about the ecosystem and the full entertainment package that ecosystem can offer. This happens to include gaming. So I don’t see either gaming company 'whimfully' pulling out of the industry just because of one console failure.

Worst case scenario, one company does extremely badly, although I don’t even think that’s possible at this point with each brand having a large support base. In that case, I think they might restructure things or take a different approach, but outright pulling out? That’s bullshit. It will take a complete industry meltdown for that to happen.

@bonkers555 Sony definitely has the cash to back their gaming division up, so I think you asking the wrong question. It’s whether or not they want to back up their gaming division or not? That’s the more important question I think. And I think the answer to that question is yes. Sony holds the Playstation brand in high regard and gives it great importance...they also back this up. We’ve seen how Sony has beefed up their first party development...to me I see this as reinforcing an army going to war. Sony is definitely not willing to be giving up their presence in gaming.

I think this best illustrates the fact that in 2013 MSony won't have massive behemoths as they did with PS360. You won't see a $600 loss leading console. We will see far more moderate upgrades that will start at $400 (or less) consoles that are probably really close to breaking even... just as WiiU will be profitable at whatever it launches at and not as high of a margin as 3DS had.

so nintendo's last year which was meant to be not so good was only 100m less profitable than sony's best year since they are in the gaming market? and only 300m less than sony made over the whole last ~16 years all consoles/handhelds included? sick company is sick!

Hopefully MS can make their next system as profitable as the 360 is now, and they can erase all that debt over the course of 5-6 years.

problem with this is Sony and MS's division isn't just gaming, so its not a direct and fair comparison.