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slowmo on 02 July 2013
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Hynad said:
S.T.A.G.E. said:
slowmo said:

Perhaps because one company makes billions in profit every quarter where as the other is selling assets and cost cutting to try and scrape profitability.  Microsoft will always have the ability to loss lead on hardware by a huge margin if they ever wanted to. 


MS will always have the ability to losslead, but compared to Sony losses to make their platforms succeed there is a clear distinction. The PS4 will make small profit in the beginning and it will grow over time. They will be able to cut price fairly soon.

Sony's Playstation division has always turned a profit when all was said and done. Yeah PS3 was an expensive endeavor for them, but at the end of the day, they broke even and turned a profit. The PS4 doesn't even compare to the PS3 when it comes to R&D and manufacturing costs. And now that online gaming is behind a pay wall, I can't see the PS4 struggling to start turning a profit early on during the gen. 


The PS3 is nowhere near to breaking even but that's not really relevant to the next generation anyway.  The point is that Microsoft are a very healthy company, Sony are not, hence the massive restructuring going on which may yet not be enough to stave off further changes further down the line.  This isn't about whether the PS4 can make money, it's about whether the parent company can afford to cut their profit and it's clear one can while the other can't.  If Microsoft want to make this a price war Sony are in trouble.  I'm not saying I think Microsoft will make any cuts necessarily but they certainly have the option to be far more agressive if they need/choose to, it's really not even debatable imo.