mjk45 said:
KungKras said:
mjk45 said:
You would have to be prepared to drop billions of dollars to get a console to market and expect not to see any profit at least to the next gen and thats if you have been succesful in making head way, Today we have 3 makers with the Wii having enough of a differential from theHD twins to make it work even then Sony has lost billions this gen and got to a stage that some people reported that the Playstation including the PS1 and PS2 's profits had been eaten up by the PS3 and there best case scenario( IE ten years or more of ps3 on the market and all remaining years profitable) is for the PS3 having enough turaround for the PS1/2 &3 combined to be back in the black in some small way and thats not something to smile about.
So i think three is tight and next gen the console makers will factor this three way battle into there strategy far more than last gen. Since there last foray into the market there Ips don't resonate like they once did and there competion software wise have grown plus i don't really think 3rd partys are going to split development resources even further .
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Console manufacturers never used to drop millions of dollars to make new hardware. Actually, Sega is the company that always had the easiest time making new hardware since they based their consoles off of their arcade boards.
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Yes they did drop large amounts not to the extent of today but it still cost a lot in terms of R&D and associated costs and gets more expensive each year, the arcade was a great stream of revenue and using a custom chip set based on the home console meant you could port the games over cheaply both ways and has to whether they based the home console off the arcade board or the other way around I'm not to sure on but either way it gave them another revenue stream one that Sony also benefited from as well with Namco using custom PlayStation chip sets but all said and done that was an aspect of the industry thats pretty much done and dusted ,Sega today would have to borrow heavily to re enter the business.
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Well, of course Sega would have to spend some money on R&D, but not billions like Sony did on the PS3. (I notice that I said millions in my post when I intended to say billions, fixed now)
I still think, that since Sega still makes their arcade boards, they wouldn't have to spend ridiculous amounts of recources on R&D. But yea, it would still be a huge investment when compared to the capital they have.