Big 3 Gaming Divisions Profits since 2000

[HappySqurriel]

Darc Requiem said:

puffy said:

Seeing it all layed out in a pretty graph like this really makes one wonder why Sony went for the loss leading strategy again with the NGP. Clearly Nintendo's strategy is superior and if I were a Sony investor I'd be asking about this.

Well we don't yet know that Sony is going to go with a loss leading strategy with the NGP but I agree with you. I don't understand why Sony ,or MS for that matter, doesn't adopt Nintendo's strategy.

For the next generation of consoles I wouldn't be surprised if Nintendo moved further towards Nintendo's strategy; but for the past couple of generations Microsoft has been more focused on building a userbase than turning a profit.

Sony (on the other hand) seems to have a much more difficult to understand strategy. I could be wrong but I suspect that Sony's strategy with the Playstation 2, PSP and PS3 has been to (potentially) recover their massive losses by creating brand loyalty, producing alternative revenue streams for other divisions within Sony, and the development of new media formats with licencing fees. I think there is some reason to believe that a teenager or young adult who buys a Playstation product and loves the system may have a bias towards buying other Sony products in the future, but with how margins are shrinking on consumer electronics due to very inexpensive competition, I'm not sure these additional brand based sales are meaningful enough to cover their losses.