Sony needs to change their game plan.

[Bodhesatva]

I wrote this general idea down in another thread, but thought it was distinct enough to warrant its own thread and its own discussion.

Sony needs to change their game plan.

Sony was really the first company to use their wallets to profound advantage in the console wars: they sold their consoles at a substantial initial loss; they bought up development houses; they paid third party developers for exclusives titles. Sony used many different creative and effective methods to turn their cash into marketshare. It's worked wonders for them, no question.

The problem isn't that the strategy is ineffective -- it's that Microsoft can play the same game, only better. Their pockets are much deeper, and it shows. Nintendo has differentiated themselves by making a very distinct system with a unique strategy: in contrast, both Microsoft and Sony seem to be playing the game called "burn as much money as possible to earn market share," and Sony simply cannot win that battle long term.

Please note that "long term" can mean several generational spans, and not just 3-4 years. Already, Microsoft is eating away at Sony's 3rd party monopoly, and with the recent news about GTA IV content exclusivity, one could even argue they've already taken the lead. Any comments? Criticisms?