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vkaraujo said:
Giggs_11 said:
S.T.A.G.E. said:
Good for Nintendo seeing that they went cheap as always with their hardware but also good for Sony seeing as they took more risk on more powerful hardware and and are reaping the benefits.Also seeing that they are a year behind Nintendo it doesnt bother me at all.


Geez, what a bitter comment... :D Still, a few things not correct in it:

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.

Ok I can agree with that. But there's also others factors to blend in: the PS brand is already very well known on itself, doesn't need all that marketing to sell. That brand marketing you're talking about comes before the product is released, and a bit after. Not almost a year later on a product everyone knows aout like PS brand. After that the marketing goes almos exclusively for games. What I'm saying is, this was 3rd or 4th quarter
of PS4's life right? I haven't seen PS4 only advertisement for quite some time, now you see mainly games related adetisement, and this kind of marketing will continue through the console's lifespan. I dont't think what you're talking about still applies at the current financial quarter, or at least has that heavy impact on it.