volrath50 said:
Both Sony and Microsoft have lost incredible amounts of money this generation. Neither is going to launch another system until they at least recoup enough of their losses, and feel the next generation will bring profits, not horrible, horrible pain. That and last I saw, only around 30% of consumers had an HDTV, and about half of those don't get any HD content on it. I wouldn't be surprised if the real number is actually lower. My grandmother, among others, thinks she has an HDTV, but really has some crappy 480i CRT thing that looks like it was bought in the late 90's. (And no, I didn't have the heart to tell her the truth.) I honestly don't think many people want another console generation to come, and the success of the Wii shows that, for many (if not most people) last generation was at least close to "good enough". |
I agree that the graphics race is over, but this doesn't mean that they won't have to release any new hardware at all. The Wii shows that, while they didn't make a serious graphical update, they needed to innovate, and release a new console, and not just a GamecubeMotion upgrade, to get a new audience.
Other than motion controls, various interface innovations are realistic possibilities. Cloud computing, like OnLive, is another possible direction. (I think that is especially appealing for Microsoft)
Microsoft lost a lot of money in the last generation, and it didn't stop them from discontinuing the xbox after 4 years. Because even if they wanted to, they had no chance to get back their money with it.
There won't be a huge Return of the Ps3. Let's say that they are breaking even about now. In this case, a $100 price cut would set them back around a year on their Quest for Profitability, and when they would be finally able to produce PS3 for significantly less than $300, about a year from now, they would be a similar situation than now, and forced to cut price to $200.
IF the 10 year plan would work, and they would have a chance to sell for $200 for five years after that, they could fix a fragment of their losses. But it was planned with the expectation of a PS2-style long momentum, that won't happen, obviously.








