Sony's video game division is in turmoil. Nintendo is dominating sales.

[tuoyo]

TheBigFatJ said:

Uraeus said:
Sony is doing pretty well I think considering their later arrival on the scene compared to the Xbox and the higher price tag.

I don't know if people noticed, but Sony managed to pull the Xbox360's marketshare down under 30% this week.

 

Why does everyone keep saying, "Sony is doing well considering the price tag of its products"?  This is confusing to me, because price tag is irrelevant to business -- profit is relevant.  Sony is losing money on each PS3 sold. Selling fewer can be considered a good thing.

Rather than saying, "The PS3 is doing good considering its price" we should say, "The PS3 is selling fewer units and Sony is losing less money than if the PS3 was seling a lot."

Or we could say the executives at PS3 were so delusional to think they could release the PS3 at any price and it would have the biggest share this gen simply on the back of the Playstation brand name.