| astrosmash said:
Microsoft After everything I've just said, you might expect me to say that Microsoft is going to pull the trigger; after all they did last generation. Many people think that if the Xbox360 falls behind the PS3 that MS will just release the 720 in the same fashion they did the 360 - way, way, way before anyone would have guessed. Unless the XBox reverses current trends and not only wins the generation, but makes a good profit, I predict that MS will get out of the console business. "Many people think" doesn't support an argument. Furthermore the games and entertainment devicess division has delivered a profit of $400 million in the past fiscal year. FYI thats a respectable ROI for the money invested in the business. One of the biggest things that people seem to forget when talking about the future of the XBox is why it even exists in the first place. In the late 90s Sony was so dominant in the console business that Sony execs were talking often about how their real competition wasn't the N64 or the Saturn, but Windows. Sony was talking about how they intended the Playstation line to eventually include all the basic functionality of a pc and that they intended for Playstations to be in homes instead of PCs. Its also extremely profitable for Microsoft to sell their tools/equipment for both console and pc developers. They want developers to use Direct x and not OpenGL to make their games because it reasserts their dominance over computer hardware/software. These profits from tools are not accountable on the main Xbox360 balance sheet. It all might seem a little silly now, but at the time it had MS really scared. At the time low end PCs were still going for more than $500, and there were still a lot of homes that didn't have computers or internet (and as such were seen as the best place for growth).Scared? They had be saying for a while that they wanted to get into the living room because there is a lot of money spent there. Xbox brand - their way of doing just that. To say they only made the Xbox brand because of fear is stupid. MS created the XBox to take the fight to Sony. Rather then let Sony leverage its lead in consoles to get it into the home computer industry, MS decided to shake up the industry as best it could. Many an analyst has raised an eyebrow as MS has just thrown billions away in its XBox division. But in MS's mind the success of Windows XP can in part be attributed to Sony being kept out of the computer industry. See above. In the last ten years things have changed enough that Sony is no longer a threat to Windows ;PCs now sell for less than Playstations; Sony is no longer dominating the living room (and Nintendo seems to be quite clear that they don't want to do anything other than games); and Sony can't afford to engage in experiments till they have paid off the PS3 debts. In short, MS has no reason to be in gaming, unless they can make it profitable. Except that they are now profitable, and you're just arguing along one weak thread about the fear of Sony attacking the Windows monopoly. So my prediction for MS is that either they will be in a weak position, and just get out of the console market, or they will be in a strong position, and have no interest in ending this generation. (my money is on the former) And/Or huh? Don't believe either option really encompasses their decision making process really. So you're just blowing smoke or do you have an emotional problem with there being an Xbox360 in the market?
So, in summary, Nintendo won't end this gen in 5 years or so because Nintendo has repeated through its history shown an aversion to the five year cycle; if the other companys leave the power in Nintendo's hands, expect a 7 year cycle. Sony won't end this generation in 5 years or so because Sony can't afford to; Sony needs to get the PS3 in the black then bank the money to R&D the PS4. MS won't end this generation ever because the only way they are making another XBox is if they starting turning a big profit, and no company making a big profit ever ends a generation. |
Tease.
