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DMeisterJ on 02 November 2008
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starcraft said:
DMeisterJ said:
starcraft said:
Magnific0 said:

I stand by this unrefutable truth:

Microsoft already made their huge move (under $200 X360), and they WON'T have (read CAN'T without mutilating their Games's Division) a price cut in ANY territory until very likely 2010. If during the next 12 months they drop the price of any of their SKUs by as little as $50 it'll be undoubtedly a fire sale, 'cause no one, NONE, would reduce the price of a product as such an alarming fast rate it it wasn't deep in trouble.

However, Sony still has a price-cut move left and I believe they're saving it for next-year when Microsoft won't be able to do nothing of the kind to counter it. MS is definitely expecting to bank hard on this Christmas, specially with Gears of War 2 gracing their holiday lineup. Gears 2 + low hardware price = winning combo, no? We will see January 1st if Microsoft won convincingly this X-mas or if on the contrary, their calculations will cost them an early exit from this generation war.

Your unrefutable truth is supremely refutable.

Microsoft's game division made a substantial sum of money last quarter, whereas the PS3 lost a TRUCKLOAD.

Even with all the cuts they have already made, Microsoft is in a better position to cut prices AGAIN than Sony is right now.

True, but it's hard to draw any clear conclusions from how much money the 360 really made, seeing that it's all lumped into the EDD, who knows what the 360 really did.  Well, MS does, but we don't know.

I think general consensus has always been that the Xbox 360 division make up the overwhelming majority of profit from EED.  Doesn't the Zune lose Microsoft money?

In Sony's case however, it is the opposite.  We KNOW the PS2 and PSP are cash cows, and yet the PS3 eats into ALL their profit AND still causes several hundred million dollar loses.

PS2 used to be a cash cow.  No argument that it probably makes money on hardware, but with falling software totals, the PS3 probably pushes the most in software dollars for the company now.  PSP may or may not make money on hardware.  There's been no indication of whether or not it was sold at a loss at first, and no news of revision of internal chips, all we have seen is the Slim/Lite when they added more RAM.  And the PSP software is laughable.  And PS3 hardware is sold at a loss, so let's clarify:

PS2:

Sold at a profit (extremely likely), Software is falling.

PSP:

Sold at a profit (unlikely-moderately likely), Software is horrible.

PS3:

Sold at a profit (lol, no), Software is on the rise, and more expensive than PS2.

What this tells us is that while PS3 being sold at a loss does eat into the profits, it made up for that for moving almost as much software as the PS2, but for ten dollars more.  So we can't solely blame the losses of SCEA on the PS3, it's as much PS2s fault for not selling more, and PSPs fault for not selling hardware.  So I'd have to disagree with your last statement.

@ Zune comments

We don't know if the Zune loses them money or not.  We also don't know that the XBOX and the 360 make up most of the profits.