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crumas2 said:
Could someone please explain to me what "winning" means in this thread? Does it mean that a console manufacturer ultimately sells enough systems and software to make a return on their investment? Does it mean that a console manufacturer sells more systems at any cost, regardless of any potential ROI?

What does "winning" really mean?

Crumas2,

For fanboys, winning is seeing your favorite console outsell the competition in both consoles sold and in games made for it and sold.  

For gamers, winning is having all three manufacturers stay in business to produce more variety of consoles and thus more variety of games.

For casuals, winning is buying a console for not that much money, and having fun playing on it, no matter what the mode (individual, group or online).

For the companies, not losing is making a positive ROI, so as to be able to produce the next generation box.  Winning is making a very good ROI.  

Last generation saw Sony PS2 win for its fanboys, and this one looks more and more like N. Wii.

Gamers won in that all 3 made new boxes, and I believe will do so again in the next generation.

Casuals won last time with the PS2 (most fun for the amount of money spent) and the Wii has captured them this time.

Companies saw MS lose last generation.  Sony won with the PS2 making an operating income total of 264B yen (2001-2006) and is still winning more as the PS2 and its games continue to sell.  Nintendo won as well, with 753B yen from 3/2001-3/2006.  Now this includes handhelds, but seeing as N. doesn't sell its consoles at a loss, probably 1/3 I'd estimate is from the Gamecube and its game sales, or around 250B yen.

Nintendo has already won this generation (or close enough).  In that 6 months up to 9/07 they made more, 189bY, than in any year since 2000 (probably even before), except for 2006 (ending 3/07 with 226bY).  With this holiday and 2008 not looking much different,

MS and Sony might both win unless they really want to fight each other hard for second place,  (ie massive price drops).  But it could be a not lose generation for both of them with the massives initial losses being made back but not by that much.  Sony, of course, has Blu-Ray to help it with revenues, but that income won't acrue to the console division, so though the PS3 might establish BR as the default medium, it won't get any financial credit for it.  :(

 



Torturing the numbers.  Hear them scream.