| loves2splooge said: You have to seriously wonder whether Sony and Microsoft are in this business to make money. All these price cuts to gain an edge over each other and for what? When does Sony plan to recoup all the money they lost with the PS3 (especially when their corporation as a whole is in the red) and when does MS plan on recouping all the money they spent on the Xbox brand? |
Microsoft's fine, and they see Xbox strategically as a competitive floodwall to safeguard their Wintel empire. As long as PlayStation exists, they'll keep pouring money in, profitable or not. And believe me, they have cash to spare and then some.
Sony's in a more precarious position, they're not near as financially sound as Microsoft and (before this gen) PlayStation was seen as one of their profit centers. I think PS3 was planned as a trojan to help Blu-ray supplant DVD, but I also don't think they expected to sacrifice near this much in the process. Plus they also had to dilute their ownership in Blu-ray significantly to get traction with parnters, to the point where they're not even the top license holder in the group anymore (Matsushitsa is, Sony's 2nd). It's been a bit of pyrrhic victory for Sony, but I don't see them ever giving up either.
Really though, both Sony and Microsoft see their games businesses as proxies for media hubs and other content businesses, so they'll keep chipping away at it regardless of profit and because the end gain is so attractive. The only hardware company that really seems to be in the industry primarily for the industry (ie: games) is Nintendo. I miss Sega, Hudson and SNK. :/
