Nintendo hes a higher chance of going bankrupt then Sony - Explaining why

[MikeRox]

Dr.Henry_Killinger said:

MikeRox said:

Dr.Henry_Killinger said:

Microsoft makes a small fraction of money from Xbox, which is more of a long term investment for them. They profit mostly on industrial contracts and Windows.

I'm pretty certain the only reason MS even bothered entering the console market, was too mitigate potential damage to their main revenue sources should Sony have come good on their claims that the PS2 was a super computer capable of launching nuclear missiles and proving "Toy Story quality" in game graphics.

Had such a device have hit the market in 2000, it would have seriously compromised Window's position as an OS and then all the MS applications that go with it, Office etc. I'm sure some early Sony PR stuff for PS2 showed spreadsheets/pie charts etc on a TV screen.

Otherwise I think they'd have just been happy continuing to produce/publish content for Windows as a gaming platform.

How though? Microsoft is a software company and Sony is/was/is a hardware company. MS should face more threat from Apple, Google, and Linux then Sony. Hell, Vaio's were running Windows 7 and 8. Sony only started going digital so heavily because of Microsoft, and some other reasons.

Xbox wanted dat PS2 marketshare, especially in America.

Xbox as a product was started before the PS2 even launched. Sony's pre release claims were that it would remove the need to ever have a PC and be able to do more than any PC and it would do it as a set top box in your living room. MS saw this as a genuine threat. Remember if it truly did replace home PCs, MS would not only lose OS sale royalties, but also it would open up the market for other applications to take over from their Office suite etc.

Xbox was essentially a revenue protection project that also had the potential to generate a very good revenue itself (win win).

Like you say, MS is primarily software focused, so why would they release a loss making hardware product otherwise?