| Joelcool7 said: Nintendo dominates its own platform's and almost always sells its hardware for a profit. So when Microsoft lost 100USD a unit they had to sell two games per console to get their profits back while Nintendo never had to sell a single game to have the same amount of profitability!
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MS had to sell more than two games to make $100 since they didn't clear $50 per game...
Anyway, making a profit right of the bat is great. For starters you get to recout your R&D costs right away. It also gives you money for improvements and gives you the flexibility to drop prices whenever you need to.
Nintendo took a big risk with the DS. If it failed they would have the GB to fall back on and still be ok.
They took a greater risk with the Wii. If noone liked it, then what, no console this gen... But it is paying off as well.
Sony took a huge risk with making a $600 powerhouse machine (and losing money on each unit). And since they dominated last gen they should have just played it safe and made the PS3 a powerful machine that they could sell for $300 and just start pumping out the games and getting every 3rd party to release games.
Now they are in a really bad spot. They are losing money, market share, and 3rd party support. And each time they lose a bit more of one of those it just helps them lose from the other two that much faster.
Essay Pro