RolStoppable said: It's a great article about Microsoft's videogame business and their questionable business practices. Malstrom is definitely right when saying it's not the question IF Microsoft will leave the console market, it is WHEN. I also thought about the possible future of the videogame industry as a whole if Nintendo really totally dominates this generation with the Wii. If so, MS and Sony would take billions of losses since their loss-leading strategies will fail badly. When Sony took the lead in this market they were competing against a weakened Sega and against an arrogant Nintendo causing 3rd parties to drop support. The N64 era was Nintendo's worst time in this industry considering their decisions and arrogance. The gamecube era was a lot better, although with going into the race again with 18 months trailing wasn't wise. The gc strategy wasn't good either, as we know trying to become market leader just by doing the same things as the competition better, does not succeed. The Wii is a totally different beast that will rise Nintendo back to the #1 spot, which they deserve. So after this 7th generation Sony would have to compete with the strongest Nintendo we have ever seen. Just doing the same as Nintendo, only better won't give Sony again the lead. They would need to have some disruptive element to this industry again. After all, the new market leaders in this industry always took the top spot because they had disruptive business strategies. Given the fact that Sony is/was never really innovative in this business I don't see any reason why they would have a chance against this mighty Nintendo. The risk to lose again lots of money in this business will be far too high for Sony. Plus they need a new brand since the PSP and especially the PS3 are hurting the playstation name. As for Microsoft, well, they have the cash to do some more Xboxes, but why would they continue to throw money into this business once their primary reason to enter the industry has gone. |
Holy smokes dude. Could you put more anti sony, and more pro nintendo in something like that without trying to sound like an absolute fanboy?
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