The Sales Cross Over: It's Real. What are the implications industry wide?

[Lost tears of Kain]

TheBigFatJ said:

Lost tears of Kain said:
You know that microsoft mad somewhere of 14 billion last year or fiscal year (read it) microsoft is in this for the long hall they want to beat out sony and take its place. BTW sony is like microsoft they are loosing billions on the ps3 right now but they see that if they can win the blue ray war they it will come back as profit later years, its the same microsoft sees about the gaming industry

 

Sony is not like Microsoft because the playstation brand consistently generates a profit with no consecutive fiscal years of loss.   Microsoft hasn't generated a single fiscal year of profit yet, and has lost an average of more than one billion per year on their xbox division.

Microsoft is going to push hard to generate a profit at all costs in fiscal '08 because they've told their investors time and time again that profitability was around the corner with the 360 and now they've put their flag down and said it will happen in '08.  They've even set aside all of the costs for repairs and assigned it to fiscal '07 so they could mask their losses in '08 and set themselves up for a faux victory, claiming they're profitable even as they spend money for repairs.

Sony also runs their 10 year mantra a lot, and it actually means something from a business sense.   It means that 7 or 8 years from now they'll likely still be manufacturing and selling a lot of PS3 units and making a lot of money with the PS3, as they're doing with the PS2 just now. 

True, what i was saying with profits though was that microsoft even with loses from game division still is doing quite well. I dont think they truely expect to make money off the game division yet, though i dont think they expected the amount of loses they have had. Like sony they expect profits in the future, though i find there plan failing while sony can succeed

Microsoft is in it for the long run they want in and they can afford a few billion in loses.

Yes, but how much was sony losing in money with ps2 each time one sold (please tell me if you can) right now sony is losing 240 dollars a ps3 sold at the 500 or 600 dollar sells, now for them to really drop that price they would have to accept loses on the ps3 for some time. What id like to know is if sony makes a decent profit for each ps2 sold or what.