No XBOX 720 until at least 2013 or drop out of gaming

[johnsobas]

Million said:
People have the belief that the 360 is profiting and recouping the billion of losses that MS made on R&D , Hardware Isssues , Advertising/Promotion , Price Cuts , Games exclusivivity etc. MS to date have never made a penny from their games division , their losses currently are around 3X's that of Sony's gaming divison.

• Releasing new consoles requires alot of R&D (which cost alot of money), you can't just assemble PC components together under a case in 2 months and pass it off as a console.
• Releasing a new console takes months if not years of strategic planning recruitment , development , production , getting developers to make new games. All of which cost alot of money.
• Promtions / Advertising proberly run into hundreds of millions
• MS may have to pay for game exclusivity if the PS3 fares better than it this generation(POSSIBILITY)
• If HD downloads doesn't take of due to lack of popularity or competition then this is another reason for MS to drop out of the games division.
• MS really shoudln't try to diversify too much , they're loosing ground in their core markets , if they don't choose to drop gaming competition will force them into it.
• If MS rush into the market first with their 720 they'll be scared whith RROD and other hardware issues that XBOX consoles have been famous for (even if they came in last it would still be a concern amongst customers)

Sony has effectivley wiped out all the profit they made with the PS1 & PS2 combined with the release of the PS3 , however it's highly unlikely that they could have won the format war without out. The success of Blu Ray & Sony's HD TV's (which success will largley be attributed to the PS3) will determine whether the PS3 was a success or not.I'm pretty sure Sony will release the PS4 , but I dought they'll put as much emphasis on technological advancement and all in "one'ness" due to the success of the Wii.

The games industry is experiencing incredible growth so I wouldn't be suprised if MS released the 720 I just don't think it's a smart move for them to do so , they have their core businesses which are generating a profit for them (software) so I think diversifying into to the games industry may not be a smart move.

 

 

 

 

One thing that kind of shocks me from this list is that Sony didn't make much money on the PS2, in 1998 and 1999 they made more money than any year of the PS2 and it doesn't even list 1995-8, in 2000 the ps2 was released in Japan so it probably hurt profits but it would still rank as the second highest year on the PS2.  Also they've still got quite a long ways to offset losses of the ps3.