| FaRmLaNd said: Why would they get out of the xbox brand now? They've just become profitable, and they've succedded in getting millions of people to pay money for their gold accounts. All they need to do next gen is take a leaf out of Nintendos book and sell the console for a profit from day 1. This may mean advancing the hardware technology more slowly but I think thats a neccesary step next gen. As the cost of the industry to create hardware and software was simply too high in many segments of the market this gen. I think the console company that will increase its hardware capabilities next gen might just be Nintendo, I wouldn't be surprised if Sony and Microsoft are far more cautious in comparison. |
First, it may not be profitable if the consoles sell for a gain. This just means that sales are greater then the total variable cost. That division may still have higher fixed cost which will nulify any profit. Also, they could move resources from the video game sector to their PC sector. The point is that investors are tired of Microsoft playing in these markets with marginal profits.
Also, on the bold, no, Sony and Microsoft have to make the system stronger. They have forever put themselves in a shrinking box. The twop focus on their top market which demands better looking and sounding games. If Sony and Microsoft were to make system that were only marginally stronger, their consumer base will deny the system and their division will implode (they are too strong for lower consumers and not strong enough for their best consumers). If there isn't a noticable jump in power, the market will feel cheated.
It doesn't matter. This charade is about over. If it's not for the high cost and billions of loses it's going to be Nintendo disrupting them. There isn't much place to go from here.
