could Sony and Microsoft to exit console wars after PS3 and Xbox 360?

[radha]

This is an article i found is a little old so if it has aalready been dicuss please delete the thread.

this is the most interesting part

Sony is not the company they use to be and the Playstation 3 is a market failure. Sony will never recover the billions they lost on the current generation of consoles. Sony says we’re not making another for ten years, which is code for we can never make back the billions we lost on PS3, let alone convince our executives to make one again.

Microsoft has a hole mile deep dug in the middle of Microsoft’s Campus to bury the billion dollars of broken Xbox 360’s they’ve got. The Xbox business is not a profitable business for them. It’s only become incrementally profitable for them after many years, and billions invested. To give you some perspective the Xbox 360, which is the second most popular console in the U.S; All Xbox revenues combined; create less revenue than World of Warcraft subscriptions. The entire 360 software business is minuscule compared to one PC game.

So the interesting observation, is that both Microsoft and Sony are in a position where they’re unlikely to ever have the motive to invest the billions into making another generation of consoles.

here is the complete article

some of the pople in this forum have very good points, i would like to read your opinion on this topic.