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A203D said:
Shinobi-san said:
 

I highly doubt either company will completely pull out of the gaming business or even the hardware business, just because of one failed console. These companies have major significance in the gaming industry and this gives increased value to their respective ecosystems...and nowadays it’s all about the ecosystem and the full entertainment package that ecosystem can offer. This happens to include gaming. So I don’t see either gaming company 'whimfully' pulling out of the industry just because of one console failure.

Worst case scenario, one company does extremely badly, although I don’t even think that’s possible at this point with each brand having a large support base. In that case, I think they might restructure things or take a different approach, but outright pulling out? That’s bullshit. It will take a complete industry meltdown for that to happen.

@bonkers555 Sony definitely has the cash to back their gaming division up, so I think you asking the wrong question. It’s whether or not they want to back up their gaming division or not? That’s the more important question I think. And I think the answer to that question is yes. Sony holds the Playstation brand in high regard and gives it great importance...they also back this up. We’ve seen how Sony has beefed up their first party development...to me I see this as reinforcing an army going to war. Sony is definitely not willing to be giving up their presence in gaming.

Like i mentioned, i'm very skeptical about the numbers shown. while i think some things look about right. i dont believe the PS1 which sold 100 mil units, and the PS2, 150 mil units didnt make more money than this. the whole reason Nintendo changed its strategy with the Wii is because it couldnt compete on that level.

i think Microsoft might think about pulling out after their next console. the reason they were so successful this gen is because of the terrible PS3 launch. when the PS4 and 720 come around Microsoft will be competing with a console launch like the PS Vita. Japan wont accept Microsoft. and it will not be easy for them in Europe. personally i think they have contributed much to this console generation and their online service is exlemplary. but three companies competing for the same market is too much, i cant see Microsoft having the patience to continue with another console if the next one cant solidify a stronger userbase.

personally what i can see happening is Sony and Microsoft waiting for Nintendo to release the Wii U, and then annoucing their consoles at a similar price point, with more powerful hardware. so in sense they wont let Nintendo do the same thing as the Wii, they will make a better effort in fighting Nintendo rather than each other.

This is exactly what I meant from my previous comment.  Probably should have specified more.  You are correct that the majority of the 360's initial success was due to the PS3's awful launch.  Not only was price much higher ($499/$599 to 360's $299/$399), but they lacked any real killer eclusive and 3rd party support til late '07/early '08.  Microsoft also made sure to keep the price difference as large as possible, dropping the price of entry to $199 in '08, while the PS3's entry was $399. 

Next gen is going to be completely different.  Sony is sticking with Blu-ray, so that will cut costs immensely.  They will also probably not be developing a new type of CPU to use, instead sticking with a natural evolution of the Cell.  So, next gen MS and Sony will probably be launching a next gen console at a similar price, with similar power.  I think next gen there isn't going to be as much room for 2 high end consoles, especially ones that will be even more similar than this gen.  The main difference will be SW offerings, which Sony wins with it myriad of 1st parties.  The Playstation brand is going to win out in Japan and EMEAA.  In America, I see the PS brand seeing a ressurgence due to the PS4's better launch price and support.

If the above does happen, and the NeXbox isn't profitable out of the gate, I can see MS getting even more pressure from investors to drop the Xbox division.  Or at least the HW side of things.  They would probably go the Sega route and continue to develop and/or publish games for the other consoles.