If Nintendo (Wii) wins this gen...

[kn]

HappySqurriel said:

fkusumot said:

All forms of entertainment are in competition for the entertainment dollar. Trying to parse out, carve up and build walls between different sources of entertainment and their revenue is an interesting exercise but at some point it becomes meaningless. All consumers have a finite amount of dollars that they will spend for entertainment. Some entertainment will get a lot of dollars, some entertainment will get some dollars and some entertainment will get very few dollars. All forms of entertainment are in competition for the entertainment dollar.

That is something that people constantly miss ...

People have limited time and money to devote to personal entertainment and the time and moeny they spend on music, movies, television and reading certainly can not be spent on playing videogames; the only thing to note with this is that people are unlikely going to completely replace all of their time/money from a particular activity and replace it with another so there are limits to the ammount of time/money you can capture accross markets.

The videogame industry itself has limited personal and financial resources to devote to producing games as well, money and development teams that have been devoted to the Wii or Nintendo DS certainly can not (easily) be devoted to producing PS3, XBox 360 or PSP games.This puts developers in the position where they have to allocate their resources in a way which minimizes the ammount of resources consumed whilst capturing the largest portion of their consumers' resources; essentially they want to invest the least ammount of money to get the largest ammount of revinue thereby maximizing their profit.

The end result of this is the PS3 is in direct competition with the Nintendo DS (and Nintendo Wii) regardless of whether people realize this or not.

 

 So you guys would argue that a movie competes wit a ps3?  Hmm... that's a big of a stretch I think.  From economics 101, supply and demand theory factor in a number of things to determine supply/demand equilibrium for a given product or service.  Substitutable goods is one of the variables, but a movie is not a substitutable good for a PS3 video game.  Substitutable, in the theory, talkes about goods that are so similar that they can truly act as a substitutes for each other.  In real life, of course, substitutability can range from perfect substitution as in different brands of salt for instance, or near-substitutes such as a 360 vs. a PS3.  You cannot compare all forms of entertainment as substitutes for each other as they clearly are not.  If they are not, economic supply/demand theory simply does not apply and stating that movie consumption directly competes with video games is dubious at best.