| Crystalchild said: someone please explain to me why microsoft made the 360, when the original xbox failed so hard.. okay, ms made the righ thing there after all, but well.. still.. it was risky. and i was thinking that ms and sony would make a little bit more money in general. ^^ (Nintendo is just scary though.) |
The Xbox lost money because of the contracts MS had with componenet vendors. nVidia and the HDD manufacturers refused to reduce the price of their respective components yet MS had to cut the market price of the console to stay competitive.
That's why they rushed to move to the X360 and dropped Xbox support so fast.
As for Nintendo profits being down this year, that is due to a one time currency exchange write off of ~$729 million dollars. The same quarter they took this charge they technically would have posted more than $500 million in profits had they not taken the write off. They also took a write off in 2005 which accounted for the first quarterly loss in the company's 100 year history. FY profits will be up next year almost by default.
The rEVOLution is not being televised
