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Seihyouken on 15 September 2008
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halogamer1989 said:
Seihyouken said:
Sony really isn't in any hurry to release the PS4. PS3's development costs were monsterous and the system is finally making money so the longer than Sony can milk the PS3, PSP and PS2 to cover the expenses of the PS3's development and the PS4's development then the better for them. Sony also has the advantage of having the most expensive system as well as having the most technologically advanced system. Since the PS3 is so expensive, that gives Sony more oppertunities to cut it's price and stimulate the console's sales. The PS3 being at $399 gives Sony 3 to 4 price-cuts before it even reaches $199. Furthermore, being the most technologically advanced system gives the PS3 more time with which to compete with any 8th generation consoles that arrive before Sony feels fit to release the PS4.

In comparison, Microsoft has a serious desision to make on their future of their console game industry. The original Xbox cost Microsoft billions and the 360 is following suit. Microsoft is learning the hard way that they can't directly compete with Sony outside of America even with a significantly cheaper console and a year headstart. Meanwhile, as they try and fail to overtake Sony, they're losing billions of dollars in the process. Personally, I think Microsoft is going to radically change their game next generation and release a profitable at launch console that may be significantly less technologically advanced as the PS4, like what Nintendo is doing. We're already seeing signs of Microsoft apparantly trying to mimic Nintendo's direction with the bare-bones Arcade model, price-cut and Avatars. I think next generation we'll see a significantly more casual push from Microsoft to try and make back the several billions they lost with the Xbox and will lose with the 360.

Sony is still losing money on the PS3 while MSFT is making at least $79 profit per console as of mid-2007.  Microsoft is also one who like to push the boundaries of tech, esp software so I do not see them going the Nintendo route until they are only a few billion a year revenue company which will never happen.

 

Do you have a source to support that Microsoft made $79 profit per console as of mid-2007 because personally I doubt it. Last quarter Microsoft was in the red with their game/zune/etc. division and unless Zune is costing more money then 360/Games for Windows is making then I seriously question the 360's profitability. Of course the recent price-drops certainly don't help the 360's quest for profitablility either.

Sony is barely still selling PS3s at a loss. The new 80GB are cheaper to manufacture than the old 40GB and those were practically already breaking even back in January. Not that it really matters because any loss currently incured by the PS3's hardware sales are more than made up for with the PS3, PSN, PSP and PS2 software sales as well as PSP and PS2 hardware sales. Last quarter Sony Computer Entertainment made a profit while it was still selling the more expensive PS3s.

Microsoft is an extremely wealthy company. They have the resources with which to spend billions (maybe even tens of billions) of dollars to become a major player in just about any industry. However, absolutely no company, not even the richest in the world, is going to invest billions of dollars into an industry and have no intention of making that money back. Microsoft isn't going to make their billions of dollars back by trying to steal away Sony's demographic while spending billions more doing it. At least, not while in the meantime Nintendo is sitting in their golden mansions laughing at the two from the moment their console launches. Why should Microsoft waste billions of dollars trying to beat Sony when it's been shown to them with the Xbox and the 360 that they can't when they can earn billions of dollars by taking the Nintendo route?