Microsoft: The 360 will be selling for a looooong, long time.

[rocketpig]

ssj12 said:

starcraft said:

ssj12 said:
So they finally decided that releasing a console every 4 years would be a stupid idea. Looks like Sony was correct on the expenses that it would cost. Nintendo of course sided with Sony a while ago agreeing with Sony completely. Seems M$ wont willingly admit Sony is correct though.

Still sounds like they might release the next console in 2010 while the others release their consoles 2012 or 2013.

Finally decided?  They did it once when Nvidia forced them into a corner. 

Sony is "correct on the expenses it would cost?"  Financially speaking, Sony's gaming division is the Microsoft E & D division of last generation.  Have they completely eradicated all PSX and PS2 profits yet?  They must be getting close.

Nintendo is the only company thats had a near to flawless economic model this generation.  Sony's business model this generation isn't a target anyone is trying to hit.

 

 

me and Naz had a discussion on this like a week ago. Now a days a minor increase in performace costs a massive amount of money so without profit of some form from a previous expense its pointless. Sony will wait till they earn profit off the PS3 that releasing the PS4 is financially fessible. This is the brilliance behind Sony's 10 year plan. The PS1 was the profit behind the PS2, the PS2 the profit behind the PS3, the PS3 will be for the PS4, and so on.

You might not want to admit this but the PS3 should be really close to being profitable for Sony. With all the internal hardware shrinkages they are cutting costs every way the can. It would be shocking if they dont make a profit by next fiscal.

A few flaws in your logic:

1. Sony will only stick to the "10 year plan" if it keeps working for them. If the PS3 stalls at some point and they see themselves being left behind by a new Xbox or Wii, you can bet they'll throw that plan out the window and adopt a new strategy. It's easy to be smug and claim that your strategy is superior to others when you're at the top of the hill. We'll see how Sony reacts when they hit the end of this generation and realize they're suddenly looking up a mighty big hill topped by Nintendo and MS is still nipping at their heels.

2. Sure, Sony financed the PS2 with the PS1, the PS3 with the PS2, etc. but they've lost a bundle on the PS3 already. Enough to completely wipe out all their PS2 profits and they're still losing money. On top of that, they're not dominating the market this time and won't have the luxury of massive software sales to keep their profits high. In short, it's quite possible that Sony won't even be at the breakeven point at the end of year five, when they need to be thinking of releasing another console.

Meaning that next generation, there will be no cash cow to support the PS4. It will have to survive on its own merits.

Using Sony's past actions as industry leader to create a model for the PS3 is folly. They're no longer the market leader and the PS3 has lost far more money than any of their previous consoles. Apple, meet orange. 1996-2005 no longer apply to Sony. It's a vastly different ballgame.