From a Business Standpoint, How long should Nintendo and Sony continue on with their Struggling Systems if they continue to do the same?

[Michael-5]

Th3PANO said:

Michael-5 said:

As long as the systems generate profit, there is no reason to pull the plug.

Sega got really hurt with the Saturn, it couldn't keep a profit for the entire generation, so Sega prematurely released the Dreamcast, and went on a downward spiral (They had limited options).

If Sony were to pull the plug on the Vita before the handheld generation ended, they would basically be saying "we're leaving the handheld market." As bad as Vita is selling, I think it could still sell over 30 million units lifetime, which isn't much but hey N64 sold about 30 million compared to PS1's 100 million, and 2 gens later, Nintendo recovered. Sony might never overtake Nintendo in handheld gaming, but if their portable division can add 30 million sales, and make a profit, why ever pull the plug?

Same with Wii U, as bad as it's selling, even Sony thinks Nintendo can sell 65 million units (was a slide in a Sony press conference this year). Even if Wii U only sells 30 million units, 30 million units is still a profit, a good one, and Nintendo only makes video games so they have no reason to ignore a profit.

never heard this, is this actually true? lol

Yea, I don't have a link, but around the time the PS4 was reveiled, there was a stockholders press conference, and I remember seeing Sony estimate PS4, "Durango" and Wii U sales. They predicted PS4 and "Durango" to sell 85-95 million units each, and the Wii U (at the current rate) to sell 65 million. However, Wii U's prediction was the only one which said *at the current rate. Meaning Sony realizes that they could be wrong, Wii U could explode for all we know.

Flanneryaug said:
From a business standpoint, if you're losing money on it a year after it comes out. As long as you're not losing money, no reason to stop.

Loosing money on what, just the console, or per average consumer?

Sony is planning to sell the Vita at a loss for another year and a half (I remember reading that they were expecting 3 years of loss with Vita), and Wii U is being sold at a loss too, but Nintendo says that 1 console + 1 game = small profit stilll. Plus how long was PS3 sold at a loss?

The way I see it, if the average tie ratio is about 7 games or so, then every Vita and Wii U now is sold at a profit, so it's definatly still worth selling.