The problem this generation

[NJ5]

Smashchu2 said:

The other thing is this console war. Really, this isn't a game of risk despite what everyone wants to think. This is a buisness. It's about money, not the number of boxes sold. Yes, the number sold is importaint, but people only look at certain veriables to determine how successful a console is. Many people will say the XBox beat the Gamecube (yes, becuase the game industry is some kind of battleground), yet Nintendo made FAR more money. The industry, of course, doesn't care about this and only sees boxes and BIG TITLES.

In the next few months, money will play an increasingly important role in the console war, with especially high impact on Sony.

Well, it's already having an impact actually. Sony probably won't cut their prices for a while because the company as a whole is in trouble and will have to do some restructuring around the economic crisis and unfavorable exchange rates for Japanese exporters.

It may also affect Nintendo negatively, but to a much lower extent since Nintendo has very high profit margins and has built a sizable warchest compared to its smaller expenses as a smaller company.