FFS...Sony is not in Trouble....

[souixan]

c0rd said:

SMcc1887 said:
5.....Although it's unlikely, If Sony got slaughtered in the rest of this Gen the would still remain in the videogame industry. Eg. In the 2 previous Gens Sony has destroyed Nintendo.....now look at them.

There's my cue!

Sony didn't destroying Nintendo isn't really relevant. The problem lies in the fact that the PS3 is (or was, at least) destroying Sony. The N64 or Gamecube didn't do this to Nintendo. If Sony cannot make a profit on their games division, they aren't going to stay in the industry. I think they're doing fine now, but another PS3-like disaster would end it. On the other hand, Nintendo would stay even if they could only manage Gamecube-like sales.

I'd also like to add, sony uses Loss Leader strategy, where it loses on hardware to gain market share where Nintendo uses a more sustainable market setup. The Gamecube still earned profit for Nintendo. Their strategy is sustainable especially in a world economy where everything is up in the air and left to question, loss leading is a horrible strategy.