Not again.

The 10 year plan is a myth. Consumer demand decides a console life, not the manufacturer.

Without consumer demand retailers won't have your item on the shelf and 3rd parties won't make games anymore. And 3rd parties will probably switch to the new generation consoles as soon as they release.

Sony will need everything it has to make sure the PS4 will be a success, so they also won't support the PS3 with new games.

It must be perfectly clear to anyone now that graphics don't sell consoles, so the minor difference between PS3 and 360 exclusives don't matter anything. Since 90% of the library between PS3 and 360 is shared price is most important and 360 will always be cheaper than the PS3.

Every time there is a 360/PS3 sales argument all you hear is x360 can cut the price. M$ as a company may still be in the black (very much so) but their profits and on the down and competition is greater than ever before.

New technologies are going to be a major threat to their income.

If you think MS can just throw money away by continually cutting cost of their console to please their fans and get a second place finish you have no idea how business works.

You MS fanboys are living in the pass. Those days of MS winning at any cost are over. Look at the job cuts among other things.

MS is in the video gaming business, but business ain't no video game.

@bengabenga

Consumer demand? If we don't see another gen of consoles for 15 years do you think they will stop selling?

If the original xbox and PS2 where still current gen do you not think they would still be selling well regardless?

This industry is far to unique for consumers to a make a call.

justinian said: @bengabenga Consumer demand? If we don't see another gen of consoles for 15 years do you think they will stop selling? If the original xbox and PS2 where still current gen do you not think they would still be selling well regardless? This industry is far to unique for consumers to a make a call.

 

Yes, of course they've stopped selling. Who do you think buys the current gen consoles? Mostly people that already have a 6th gen console.

There's no endless demand for videogame consoles. Once someone has one, that's  one potential costumer less. 140 million people have a PS2. Without the current gen consoles PS2 might have sold a little better, but not drastically.

You can refuse to release a new console for 15 years, but you obviously it won't sell your old one forever.

Actually what MS's job cuts show is that it's a much more cautious company than Sony. Instead of waiting for major losses, they preemptively reduced costs. It may look bad on a social level, but as far as the corporation goes it could be a wise measure.


The important point is that MS's ability to cut prices is not smaller than Sony's. That's pretty obvious when you look at all the combined facts:

1- MS's entertainment division is still profitable even after all its price cuts.
2- MS didn't cut prices as fast as Sony did (they're probably on target to halve 360's price 4 years after launch which hardly looks radical compared to what people are asking from Sony).
3- Sony is much more affected by the recession than MS. In fact a bankruptcy is not impossible if the recession lasts long enough and Sony can't restructure fast enough (they started too late).

 

kowenicki said: reask said: Squilliam said: @Reask the PS3 has other problems to deal with. Sony doesn't own the I.P to the CPU/GPU and must always pay royalties for their use. For this reason the PS3 can never be as cheap as the Xbox 360, because Microsoft has more options in terms of cutting costs and minimum system requirements.   So squill we are now depending on Sony been unable to cut prices? Cmon lets be honest here  if thats all MS can depend on they are in trouble.   Wow... that delayed console pick up has really got to you hasnt it....  Ms wont ever be in trouble this gen.... I will go out on a limb and say the buying trends of this gen are now pretty much set everywhere...... except maybe Japan.

 

I would have to agree here. The 50/30/20 split will probably hold for the next three years, by which time the 8th gen will be on the horizon if not already begun.

@bengabenga

So tell me what evidence there is to backup your theory.

The natural progession of sales is that the current gen sell more than the previous gen.

Ok, let's look at the last gen. 140+million PS2s, about 50million xbox/gamecube.

Let's give that a round total of 200million last gen consoles sold.

(I would ideally like to use figures before the current gen consoles where released)

Now, to the present. How many of this gen consoles sold so far. Less than 100million after approx. 2 1/2years, in 360's case significantly longer.

One would think that it would be a lot more by now as all/most those previous owners would have pick up one by now.

The only way for the market to grow is to give it more time.

Nintendo has done the right thing. Why keep looking for the same customers when there is a whole big world out there.

Every one that buys a console is one less to buy it again but there is a percentage of tens of millions more that can come on board, given time.

Your numbers are out a fair bit.

It was more like 100 million ps2 sold to customers by the time ps3 hit, 20 million GC and 25 million xbox. for 145 total.

Less then halfway through gen 7 and we are at 100mil and selling 40-50 a year.

The PS3 will not come close to a 10 year life. The PS2 isn't even there yet.

aderoche said: Your numbers are out a fair bit. It was more like 100 million ps2 sold to customers by the time ps3 hit, 20 million GC and 25 million xbox. for 145 total. Less then halfway through gen 7 and we are at 100mil and selling 40-50 a year.

ps2 sold 40million in the last 2 years... news to me

benga - why are you assumjng the industry wont grow this gen?