seece said:
Despite coming last the Gamecube was profitable for Nintendo, pretty early on I think. That wont be the case of the PS3 ... its not a case of "giving up" Sony has shareholders to think about, and if the PS3 never makes back any money they wont be able to get a PS4 out based on their say so alone. Microsoft losing a ton on the Xbox is a different story ... I think they knew there was a big chance they would lose money on the Original Xbox but they went in on a mission and expected to lose money. Sony expected to dominate this gen like the previous 2. |
I agree. its all about profibility, regardless of the business. Sony is losing money. The economy is in poor shape. ANd its just not their gaming division. The company is hurting everywhere.
They are lucky that the console is still selling moderately well, and this only serves to bolster the company's confidence that it will one day become profitable. But it will definitely take longer than expected.
Sony is fortunate that the gaming industry continues to grow. And I think it will continue to do so thanks to the Wii. It has attracted a whole new base of gamers and many will migrate to the HD consoles over time. As long as there are more people playing there will be an increasing demand for consoles and titles.
The biggest problem Sony has is the competition, especially from MS. The 360 is a direct competitor offering many of the same titles and services. The market is big enough for both currently, but Sony continues to lose market share. With all the other detrimental factors, Sony may hard pressed to make a profit with the PS3. And this was the last thing the investors were expecting following the PS2s success.
