Both MS and Sony are much more powerful companies than Nintendo they both have more assets and engage in other business ventures in which they are extremely profitable in. MS and Sony would be both worth over 200 billion dollars. Nintendo relies solely upon being profitable in the video game console industry. Sony is the leading electronics company in the world. MS is the leading Computer software company in the world. Sony and MS can afford to make initial losses when introducing a new console to the market. Nintendo could not afford to adopt the same business model as MS or Sony.
Losses are expected for a new console, R&D, advertising and other expenses to get the new project up and running. One or two billion dollar loss a big deal to MS or Sony? lol. That is mere loose change to MS and Sony. If Nintendo took a couple of billion dollar loss to introduce a more powerful console onto the market they would being financially ruined.
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