torok said:
Marketshare leads to profits. When you have the share, you sell more games and get more money. With a high share, you can start grabbing big 3rd party exclusives and just beat down the oponents. That's what PS2 did: created a big share and got a lot of 3rd party exclusives. With that, they just used their share as a weapon to reduce their competitors share and their profit.
That's why MS is cutting the X1 price. They know that if the difference in software sales between PS4 and X1 keeps growing, they won't be able to snatch 3rd party exclusives and Sony will probably get them for free.
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The Gamecube profited and it was one of the worst selling consoles of all time. Nintendo did not go for Marketshare.