Will Wii sales slow down after Christmas?

[facher83]

PDF said:

Sony is losing money off the PS3 but not all the money they gained of the ps1 and ps2. Sony risked losing money on the ps2 at the start and looked what happend. Your Idea that Nintendo is a frugal company is wrong. Look at the N64 with its cartridges. The ps1 came in with cheaper price and games and won that generation. The ps1 was bearly even known till the N64 came out.

Im getting a lil off topic.

Anyways Nintendo does not put as much money it to machines because it cant afford to keep up with MS and Sony. So thats why they have taken a different strategy. Even if they wanted to put money into their machines like MS and Sony the couldnt afford it. Rvenues - Nintendo=7.8billion MS=51billion Sony=70billion.

I am not saying that Nintendo will turn out a $500 system next time. I am just saying that they will be able to have the freedom to risk more so you the buyers will get more in return. They will still have the cheapest sytem and they have learned form their mistakes. If the wii lifespan falls short because lack of graphics and power they will simply fix that next time by putting a lil more into it.

 I couldn't find the post, but somewhere on the forums here I took a look at the PS1 'age' earnings and teh development costs of the PS2, and then the PS3.

 

The PS1's earnings helped encourage the PS2, obviously.  However, the PS2 sapped up all of PS1's earnings but started to hit back to zero right from the get go.  It took a year or so to actually turn a profit again, but a number of years of sales generated a nice development cashflow for a future PS3. 

PS3, on the other hand, sapped the entire PS2's profit lifespan before it was even released, and even ran up a debt.  After an entire year, I think the numbers were something like a billion dollars still in the red, way far out from zero....  financially speaking, the PS2 was a better investment in the first 2 years than the PS3 looks to be in the next 3 (assuming they can break even and start to make up some of the debt generated).

 

(Debt, meaning, by profit of console/software terms, having spent more than you made)

 

After a year of PS2 sales, Sony's gaming was back to zero, and making stockpile again.

After a year of PS3 sales, Sony's gaming is well below zero still, a billion to make up STILL.

And that probably will take 2 years to get back to that zero.

Problem is, development costs for a PS4?  They need to start making money for the financial backings to even consider a PS4.