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Dulfite said:
Agente42 said:

The key for understand this is: First, aggressive pricing. Sony loses a good profit margin chase install base. It´s happening with PSone, PS2, PS3, but no occurs with PS4. Sony launch a cheap version and lost a good margin with old consoles. PS4 has fews price cuts. Second, PS4 it´s not focusing on a multimedia center, Ps3 and PS2 was the multimedia center focus, so people buy the videogame because, beyond games, it´s a cheaper option and good multimedia center. Sony now focus on profiting ( PS5 beyond June, now making profiting per unit sale) 

And this is what I think Nintendo will do with the Switch. Why sell 15 million Switch 1's to a mostly tapped userbase with dwindling software sales and user engagements when you could sell 17-20 million Switch 2's to a brand new/excited userbase with increasing software sales and user engagements?

The smartest thing for Sony/MS/Nintendo to do is focus less on the generation numbers and more on the annual numbers.

Sony self-destruction ps4 lifetime potential is a strong case study for Nintendo to follow as it no doubt is more profitable for Sony to cut the legs out on PS4 so it can inject steroids into PS5.

This is the thing way too many industry watchers, enthusiasts, and fans don’t get. It would be cool if Nintendo kept selling the switch in volume a few years after they launch its successor, but from a business standpoint it would just make more sense to shut down Switch production basically immediately after launch to super charge Switch Successor sales. 

I feel like every console sold after about 90 million, regardless of manufacturer, is just bragging rights for fans more so than an actually useful expansion of market share or user base. Who knows how many of those late era PS2s were bought just to be a cheap DVD player, for example. Just barely half the PS2s install base carried over into the next generation