Development Costs and Royalties on PS3 and 360

[Game_boy]

Nate said:
If this article is to be believed, I just wonder if MS has over the course of the last six years has moneyhatted more to third parties than they have collected in royalties. Do they have any other gameplan to make money in the long run other than monopolizing the industry?

That was their game plan. They're so used to monopolies in other markets (Windows, Office) that the executives truly believed they could get a monopoly in this one with enough investment. Their entire operation is set up to profit only in a market-dominating position for that reason. Currently they are celebrating victory and think that profits will start happening soon because of Sony's mistakes, but they haven't fully reckoned with Nintendo yet: it'll be an interesting fight especially considering X360 in Japan.