Giggs_11 said:
1) Cheap as always it's not entirely correct, I believe apart from Wii, previous consoles Nintendo always had the more expensive hardware, or at least toe-to-toe with the others (Nes, SNES, N64, Gamecube). With WiiU comes weaker hardware buit in the console but an expensive gamepad and a more expensive console structure than X1 and PS4. Don't think, all accounted for, WiiU is that more cheaper than PS4 and X1. 2) Sony didn't took more risk, building a machine which is only stronger than the previous one is the easy way to go. Kinect, motion controls (Wii), gamepad, those are examples of taking risks. 3) Being a year behind doesn't matter to the discussion at all. We're talking about quarter sales (3-month time frame) not ltd sales. Actually, generally being younger is even better cuz it's fresh, the new thing, and it gets people attention. |
Point 1 and 2 are correct.
Point 3 not so much.
There is one thing called Growth–share matrix that show this clearly. Since the PS4 is still young it demands a lot more of marketing and administrative costs, that affect their income statement, therefore, the point in the lyfe cycle the product is does affect it profitability.