either Sony loses much money or MS makes much money, help me out.

[heruamon]

DirtyP2002 said:

Bodhesatva said:

I think you're missing the point of the original post.

Let's assume that Sony is profitable with PSN for the moment, because that's where all the argumentation seems to be. If they are, then Microsoft is much, much more profitable -- both because they have more DLC on XBL than PSN has, but more improtant, because XBL generates 50$ a year from every gold customer.

If we assume everything else is equal (which again it probably isn't, as Microsoft has had the Video Store up and running for years, and considerably more DLC available to all users, but I'm trying to be as conservative as possible), and assumign a conservative estimate of 4 million gold subscribers, that's 200 million dollars a year in revenue that Sony has no comparison for.

It's like they're the same services... except Microsoft makes 200-300 million dollars more.

 

 Finally somebody got what I was trying to say. Imagine MS would use this money for their internal developments (4-5 highest budget exclusive games) or for buying exclusives etc.  MS might be very happy how thinks work in the online-business of the consoles right now.

 

The point was gotten, but it's important what this money allows M$ to be able to accomplish.  Let's not forget, M$ shaved about $20-25 bln of free cash over the past 5 years, because sitting cash is goot, but it starts to fester.  Looking into the financial statements over the past year, they've invested HEAVILY beck into the business, and that's key for the future experience XBL customers, free and paid, will enjoy.  I'm not going to question the business acumen of Sony or Nintendo on this issue, but I'll say this much, XBL structure allows M$ with a large fund to do the R&D work needs to push the XBL experience to the next level, imho.  I think avatars are only the tip of this huge iceberg sailing into view.