There's Not Enough Room For Both Of Us In This World... Sony VS Microsoft

[Lord N]

Just because a company is very wealthy doesn't mean that it's going to keep pouring money down a bottomless hole. That's just very poor business acumen. Not only did the Xbox lose 6 billion dollard, the 360 has still lost over 1.5 billion this generation even if you count their profitable quarters. Microsoft still won't have had a profitable generation after this gen is over, and they aren't going to allow a gaming console to keep losing money for the company. No product is allowed to survive on billions of dollars worth of red ink unless the government is backing it.

Not only that, but MS is and will still be in the same position as they were last gen, which is a distant, unprofitable second place just barely ahead of the third place console. They also failed to achieve the overwhelming exclusive third-party support that they need to make any real impact, and their console for the most part only appeals to core and hardcore gamers.

That being said, if either were to leave, it would be MS first. Now that the market has rejected Sony's plans for an all-in-one multimedia device and has emphatically proclaimed that they just want an exciting gaming experience, Sony obviously won't release another $600 over-engineered console with a bunch of features that 95% of gamers don't care about. The PS4 and subsequent Sony consoles will be much more geared towards gaming and not towards being a multimedia device, and hence eventually, there won't be any reason for MS to make consoles anymore, especially considering my first two paragraphs.