Mark Rein continues to anger Nintendo fanboys

[Squilliam]

Final-Fan said:

Squilliam said:

I haven't tried to. All I said was that the Wii isn't going to make the industry massively profitable overall. It doesn't matter how they approach the Wii, its just a function of the market that as long as there are companies which are profitable there will be more entrants into the market until the average profit is simply a return on capital investment and nothing more.

So ... are you suggesting that to have high profit margins, a game-making market should have lots of companies that are losing money?  If not, then what exactly is your argument?

Im saying that the more monopolistic the section of the market, the more potential profits to be had. If the cost of entry for the next generation is say 40M for new releases then you would have what is in essence an oligopoly of publishers; Acti-Bliz, EA, Ubi, Take2 and say Bethesda who can release games on the systems and thus competition will be more limited. The more open the market, the more perfect the competition the better it is for consumers and the worse it is for developers and publishers as competition drives down margins. This is likely one of the reasons why the big publishers haven't given the Wii the interest they perhaps should have because they are looking at the long term viability of each market.

@Procrastinato: Very funny stuff.