Reggie, implies that there isn't a big difference between Xbox and PS4

[bowserthedog]

Ka-pi96 said:

bowserthedog said:

That is valid in theory. But the development cost of a 1st party Nintendo game is relatively low. I'd be surprised if Nintendo lost money on any first party wiiu games. Some of Nintendo's games have a large budget but these are rare. I could see Zelda U needing a couple million in sales to be profitable which it will easily acheive. I'm really surprised to see that people are trying to argue a case for xbox being more profitable. I thought it was a known fact to be a loss leader for microsoft which is way so many investers are calling for microsoft to sell off thier xbox division.

Yeah Nintendo probably won't lose any money on a 1st party title, but the risk is still there. Relying alot on 3rd party minimises that risk, it is the 3rd party companies that have to take the risk not Microsoft themselves.

Also... Xbox is actually quite profitable for Microsoft, so it being a loss leader is certainly not a fact. Sure overall it has made a loss, almost entirely because of the original Xbox and its associated costs. But the 360 has been consistently making a profit for Microsoft.

The articles i've read on the subject suggest that Microsoft lost billion on the xbox 360.