ThProcrastinato said:
MaxwellGT2000 said:
While that proves nothing, because the topic is the razor model being flawed and you point out it worked for them when they were the highest selling, its obvious it's majorly flawed because now they're not on top and lost billions.
As for what I highlighted, 360 has similar specs, followed the same razor concept, lower price point, but their company is making money now, so obviously it's not just a engineering problem more of they made it way too expensive to produce.
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Maxwell's argument has some erroneous, simplistic assumptions -- namely he's ignoring the fact that Sony makes about $9 in royalties off each BD drive produced (which is $270M for PS3 drives alone) which are reported in another division as revenue, and that money is spent by the game division, in purchasing BD drives from 3rd parties (which is part of the reported expenses), and that the cost-of-goods for all of Sony's software is reported as losses in the games division, and as gains in the disc manufacturing division (again, hundreds of millions of dollars).
Still, he's fundamentally correct in his base assumption -- the same things I mention above were true during the "PS2 era" (except DVD royalties for Sony are far lesser per unit), and thus the PS2 was actually much more profitable than it appears from reading the games division reports directly, and the PS3 is not as profitable thusfar... at least not directly. You might put forth that BD royalties will eventually sum to billions of USD for Sony alone (i.e. not inclusive of the rest of the BDA), during the format's lifetime.
The Wii is just plain a cash cow for Nintendo -- they have created a no-lose scenario for themselves, by creating hardware which is cheap enough for consumers to afford, and yet profitable enough for Nintendo to rake in money from hardware alone. On top of that, the plethora of cheap software available for the platform ensures its continued existance, and although the profits are spread too thinly amongst 3rd parties to make them happy, Nintendo sees money from every single title licensed for their hardware -- DS and Wii alike. Much like Apple's iStore, actually...
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