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Squilliam on 12 March 2009
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Rpruett said:
Squilliam said:

Nintendo never lost billions of dollars on consoles. I think that sums up the position on Nintendo.

Microsoft is making money on the Xbox 360 operations and it is extremely possible they will post a net profit overall, especially if the next generation is delayed to 2012 or beyond. So improved marketshare, profitable and establishing the brand as a viable gaming console means they could become or could already be considered a success if brand equity is factored into the equation as well.

Its Sony's failure to have a competitive price at this point. Its not an excuse and should never be used as such. Nintendo and Microsoft are both able to cut the price a lot faster because Nintendo was always profitable on the Wii and Microsoft has much more software revenue and more options to cut the price as they made their console better from a business perspective if you consider the bill of materials and licencing compared to the PS3.

Sony pays:

  • Cell royalties.
  • Blu Ray royalties/extra cost for hardware.
  • RSX royalties.
  • XD ram royalties for the technology and extra fabbing cost due to the custom nature of the design.

 

 

I'm not sure what is more of a failure the PS3 or the Xbox 360...

Like you said,  Sony did just about everything wrong this generation and the fact that Microsoft is still worried about competition from Sony is kind of odd.  The 360 can't get rid of the PS3 despite being half the cost (Doing so many more things correctly **according to you**)  Kind of weak if you ask me.  The 360 shouldn't be outsold by the PS3 for any singular week (With how horrible of a failure the PS3 is).

Despite the fact that the PS3 and 360 are tracking very similarly (Actually the PS3 is tracking higher in it's lifespan). Yawn. This argument is stale and old.  The PS3 isn't a resounding video game changing success that the PS1/PS2 were.  Although it's not the failure that it's quite often painted to be.

When/If Sony discontinues the PS3 early,  they lose tons of game support, sales fall off the map, they have trouble 'giving' away the system.  Then you can come back and talk about how big of a failure the PS3 is/was.  Not until though.

 

 

I will sum it up in one sentance.

"When it looks like you would have been better off NOT releasing a console, the console you released is a total failure"

The brand is at its weakest level since the days of the PS1.

The profit they made with the PS2 is gone.

They now have two formidable opponents with unlimited cash to deal with.

Whats left of their brand equity is driving their sales this generation. No other console manufacturer could do as badly as they have and still retain a respectable enterprise. They didn't earn these sales with the PS3, they got them by releasing the PS1/PS2.

 

 

 



Tease.