Heaven help Nintendo if Microsoft or Sony ever listen to these Buisness analists. Nintendo needs to make money on every system sold they are a game company there is no other real source of income to Nintendo without games. Sony and microsoft can loose money on a system and if they can not make it up in games Movies electronics computers and operating systems is other areas to still make money. If the time come and Microsoft and Sony directly compete with Nintendo (system capabilities) Microsoft and Sony will Slaughter Nintendo. This is in no way a blast at Nintendo but figure into the fact sony looses more on selling a PS3 than it cost to buy a Wii let alone what it cost Nintendo to build one. Sony could have made a system the same or slightly better than the Wii and gave it away. Sony would still have lost less than they are now by selling the PS3. Who wouldn't want a machine that could do what the Wii could do for free or even half price?
I really would hate to see this as I love Nintendo and if we lose them as a console maker it would be bad for everyone. I also would hate this because it would limit serious story driven gameplay too as most people want to just sit and play around with a game. That would leave us who would rather spend 40-100 hours playing a indepth story very limited selection. Microsoft needs to find its niche in the market and it will be fine. I do think both Microsoft and sony will make profits this generation. I don't know if Microsoft is even concerned about making back the $ they lost with X-box it was an investment in future gaming machines not ever really geared to be profitable.
