Wonktonodi said:
For the PS2 there is overlap, so how much more would losses be since the ps3 came out if the ps2 wasn't still there selling? then there is whatever ps1 overlap at the start and psp overlap. Nintendo still had the GBA with the gamecube. 360 is only just covering it's own losses now, although at the rate it's going it's very possible those profits will pass the devision the ps2 was in. But then how could profits also be so low when the ps2 sold over 1.5 billion games or more than 50% more than any other system ever has. I wonder how much exchange rates hurt them as well. |
Exchange rates hurt SONY alot, also every SONY console/handheld has made a big loss in its first year on the market, most break even on the second and profit on the third - combine this with low profit margins when hardware is profitable and alot of software sold after its gone platnuim(greatest hits for yanks) and you get an idea of why SONY 'only' pulled in around $1 billion pre-PS3 losses.
Overall i think the biggest message to console manufactuers would be "Don't launch consoles at a loss, minimize R&D costs on products that won't see the light of day and keep up with currency exchange rates". This also leads me to believe that next-gen atleast from a hardware perspective we might see a healthier industry - afterall just as Microsoft moves into black for lifetime 360 profit Nintendo will be gearing up to launch N6, and SONY is always going to be in the red on PS3 (if they are lucky it might fall to about $1 bln which is a good recovery).
Next we just need the software side to become helthier (we need better management of additional revenue streams like DLC and more titles that are mildly successful instead of games being massive hits or failures).
