If the Scorpio is too powerful for $399, what does that mean for PS5?

[Normchacho]

Azzanation said:

Intrinsic said:

So your decisions are based on the cmpanies making money?

And you may say MS doesn't care about sales and how even MS themselves say they don't care about sales (go figure)...... but I am willing to bet you $50 that MS would probably love to be the one that is pushing on 60M consoles sold and not the one still trying to hit 30M. And being that they don't care about sales I can't for the life of me understand why they were and have been slashing the price of the XB1 as much as they have.... especially last year.

But hey waht do I know. MS says they don't care about sales.

But just outta curiosity though; doesn't more sales also mean more profit?I mean its not like sony is selling teh PS4 at a loss right?

Do you understand the difference between a Buisness Market and a Sport Competition?

Sure its a no brainer that all companies want to sell the most products, i also want to be the richest guy in the world, is my life over because i am not the richest man in the world, do i just give up on making money because someone else is making more money than me? Does Xbox have to outsell the PS4 to be a profitable brand? No. It doesnt. MS can give Xbox away for $1 for many years just to claim the title of best selling console in the world if they really wanted to win a sales race. They dont and i am glad they dont either. Sales mean nothing if your not making money on it.

Also you do know for the first few years of a new console being sold they are losing money on it. I believe only now Sony are making profit on the PS4, not 2 or 3 years ago. If every PS4 was sold at a loss *Lets say -$1* and than you have a console that goes out to sell 30m in its first 2 years.. what does that tell you? The real profit is in the software and the subscribers. We all know Xbox has a healthy subsciber rate and there own software is normally up there with the others, yet they didnt sell as many consoles as PS4 which is where the gaming industry normally loses money. 

I am not defending Xbox, i couldnt care less how much they sell. Sure it would be nice however it doesnt tell the true story. Iv been playing World Of Warcraft for more than 12 years. I am a subsciber since 2005. Is WoW the best selling game of all time? No, is WoW one of the most profitable games in history? Most likely yes. Actual physical copies/Hardware is all a bonus and slightly helps, its not a make or break competition. Theres no Gold Trophy at the end of a season on who wins the sales race. Its not a sport like many of you try to believe. Its a buisness. Like Cars. I own a Jaguar, its definifty not the best selling car in the world. Does it make it not a good car? Far from it.

Alright, VGC really needs to do a series of articles on business economics for video game nerds because I hear crap like this and "Nintendo could lose money for the next ** years and still be fine!" and it's all nonsense.

The moment shareholders realized that it would be nearly impossible to make up the lost revenue from selling the Xbox One at a $298.99 loss the stock price would take a huge hit, the board of directors would call for an immediate end to the practice and would lose all faith in the division, and they'd probably want the person who came up with the idea removed.

The value of a publicly traded business isn't like a personal checking account. Their value relies on shareholder confidence, so doing stupid things can have huge financial implications for a company.