Why PS4 won't be cutting edge, and neither will Xbox3 - or Why Nintendo might win next gen

[DanneSandin]

haxxiy said:

DanneSandin said:

I don't think I ever said that we could judge the PS4 from how the PS3 has performed. If so, please show me the sentence; I might have worded it wrong.

And I do agree that PS4 will be a great deal cheaper; never argued that either. I've said it'll probably cost $400, and that Sony will take a $50 hit at most per sold console. $50 isn't "taking a small loss" if you sell 10m PS4 and losing $50 on each sale; that's half a billion in losses. half-a-billion. Sure, they'd make up some of it with SW, but that's still pretty much money, especially for a company that don't have any money, and has lousy credit rating.

And saying the Wii U can't win next gen is like saying that PS3 wasn't going to be able to turn around and will end up dead last out of the 3 back in 2006/2007...

Wrong. Sony has over 14 billion on cash reserves, twice the ammount of money Nintendo currently has. And that's down from 21 billion after the 2011-2012 losses and everyone hopes they start to profit again coming the next quarters.

It's really hard to bring a compnay down. Microsoft has $54 billion in cash reserves and there are still articles of doom. One thing to remember, specially looking at how Apple shares still manage to fall after record profits: investors are cowards. And I don't say it in a derrogatory way. Money needs to flow to where it has the most chance of prospering and that isn't among japanese companies, not with that yen. That's how ruthless capitalism works.

As far as I understand it, Sony has more loans then they got assets, no?