The following are Bruce's opinions (from Bruce On Games)  and his view of the latest problems with Sony. This was taken from Istockanalyst.com who's mission is to ".... educate and provide tools to help investors make informed investment decisions. iStockAnalyst is a virtual community of financial bloggers, investment advisors, money managers and investment newsletter managers that provide in-depth and timely research articles for investing in today's market."

What, if any, impact will this have if more and more analyst come out and question if investing in the PS3 is really the best choice?

http://www.istockanalyst.com/article/viewarticle/articleid/3277020

The business model for console games in this generation is not a good one. Games are very expensive to develop but most make a loss, it is only the occasional hits that keep the industry going.

The reason the games cost so much to make is that the consoles are far more content hungry than previous generations of machines yet are not powerful enough to use the large swathes of middleware necessary to reduce production costs.

And the market has changed. Increasingly each product niche is owned by just one title, which can sell massively. All the competitors to that dominant title sell in far smaller numbers than they did in previous generations. Making a “me too” title is no longer a good idea, now you have to try and ensure that each title you release dominates its niche, something EA (for instance) have failed to do.

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Sony are caught between a rock and a hard place. The PS3 design contained so many newly developed bits that it was, and remains, very expensive to manufacture. But Sony are not in good financial health so do not have the resources to subsidise a price reduction. Already they have lost billions on the PS3 project. It has proved to be probably the biggest loss maker in the history of video gaming.

And now things are getting even worse for Sony. Activision is the biggest game publisher and their boss is Bobby Kotick. He is not happy with the PS3: “I’m getting concerned about Sony; the PlayStation 3 is losing a bit of momentum and they don’t make it easy for me to support the platform. It’s expensive to develop for the console, and the Wii and the Xbox are just selling better. Games generate a better return on invested capital on the Xbox than on the PlayStation”. And this unhappiness becomes a threat: “They have to cut the price, because if they don’t, the attach rates are likely to slow. If we are being realistic, we might have to stop supporting Sony”.

In the real world very few games are actually developed for the PS3. They are mainly developed for the Xbox 360 and then converted to run on the PS3. So things are very bad when that conversion cost is becoming uneconomic."

Mmhmm.

So to sum up, games are expensive, niche is bad, Sony is failing, now to quote a random bluff by Activision, famous for Call of Duty, Guitar Hero and...and...........

PS3 only gets 360 ports, and they still cost money.

To sum up further: LOLZPS3IZDOOMED!

As always Gebx, my heart lights up to see your threads, as I know instinctively that they're bound to be filled to the brim with fantastic new PS3 news.

This articles existance is based on Bobby Koticks comments. He wants his business to earn more money, which can be achieved by more gamers owing consoles, which in turn can be acheived by Sony dropping the price.

A man who is disscussing how to earn more money is not going to realistically then turn around and drop support for a platform, ergo limiting the amount of potential customers.

Hollow threat is hollow.

Lol let Wii and 360 share multiplats with Wii as the lead platform. ;)

It's impossible to make money on PS3 without 4M+ plus sales. PS3 is doomed.

Without PS3, there wouldn't be near as many 360 games. As funny as that sounds.

Are they really going to call Kotick's schtick, when CoD4 was built by two different teams within Infinity Ward?

Anyway, don't put "me too" games on the PS3 then. Only put on the games that are the big sellers. That's fine by me. It just makes it easier for me when I go look at the PS3s library at a game store. Less shovelware = better, imo

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Oh Gebx....your PS3 hate makes me giggle inside.

When I was growing up, the local kids used 'Bruce' as slang for penis. So when I read the title I read it as 'Penis on Games to Investors'.

Thats interesting how this article came up after Activition opened their mouth.... attention whore? i think so :)