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Forums - Sales - Will all of the Big 3 survive next generation?

 

Who will exit the market next gen?

Sony 225 49.02%
 
Microsoft 98 21.35%
 
Nintendo 67 14.60%
 
Sony & Nintendo 20 4.36%
 
Microsoft & Nintendo 21 4.58%
 
Microsoft & Sony 27 5.88%
 
Total:458
HappySqurriel on 15 July 2012

In my opinion, I think Sony is at greatest risk of leaving the console market but it is not something I see as being particularly likely in the near future ...

Sony as a company is struggling and the business model they produced/followed for the PS2 and PS3 requires them to be the dominant platform of a generation. If they continue to follow this strategy and if they continue to see declining sales/increased competition they're going to become a greater liability to Sony, and (at that point) it may make sense to part out and sell off the gaming division to save the company.



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MikeRox on 15 July 2012

If Nintendo dropped out, they'd be done, and it really looks like the same for Sony. MS know they've got a cash cow if nurtured properly though so I don't see any of them dropping out unless they've gone bankrupt.



RIP Dad 25/11/51 - 13/12/13. You will be missed but never forgotten.

Jay520 on 15 July 2012
MikeRox said:
If Nintendo dropped out, they'd be done, and it really looks like the same for Sony. MS know they've got a cash cow if nurtured properly though so I don't see any of them dropping out unless they've gone bankrupt.


Of course, they'd be done if they dropped out. That's what 'dropped out' means

Jay520 on 15 July 2012

Double Post



Millenium on 15 July 2012

Unless any of the 3 go bankrupt in their entirety, they'll all "survive".



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NightDragon83 on 15 July 2012
halil23 said:
I voted ms, cause who would want a satanist corp to continue getting away with it... (sad day in gaming industry)

Every time Sony fans attack M$ for being a soulless, evil megacorporation that's just in the videogame industry for the $$$, the irony meter explodes into a small mushroom cloud.



On 2/24/13, MB1025 said:
You know I was always wondering why no one ever used the dollar sign for $ony, but then I realized they have no money so it would be pointless.

Pesmerga7551 on 15 July 2012
NightDragon83 said:
halil23 said:
I voted ms, cause who would want a satanist corp to continue getting away with it... (sad day in gaming industry)

Every time Sony fans attack M$ for being a soulless, evil megacorporation that's just in the videogame industry for the $$$, the irony meter explodes into a small mushroom cloud.

Well, to be fair it's far more accurate than saying that about Sony. It all comes from their culture (Sony's). Microsoft non-existent presence in Japan isn't a coincidence. If we people in the US had the same high standards of business and personal ethics, Microsoft would be out of the console market in the US too. But, this society honestly is f**ked up.



SOLIDSNAKE08 on 15 July 2012
Millenium said:
Unless any of the 3 go bankrupt in their entirety, they'll all "survive".


this is the most accurate answer. i dont see any of them just leaving unless they're completely fucked.



aikohualda on 15 July 2012

if all 3 companies survive the next gen.... do you think there would be a 4th major console maker? apple anyone? or samsung maybe? im wonder if someone wants to penetrate the industry....



 

darkknightkryta on 15 July 2012
Aielyn said:
darkknightkryta said:
And how are the Wii and DS absorbing the 3DS' losses when Nintendo is posting losses?  They wouldn't be losing money if the Wii and DS are currently generating enough money.  They were very profitable before, they're not now.

An examination of their financial reports reveals that Nintendo was actually in the black in the last two quarters of the last financial year. Here's their net income for the 2011-2012 financial year, shown as at each quarter within that year.

Q1: -25,516,000,000 yen

Q1 and Q2: -70,273,000,000 yen

Q1 to Q3: -48,351,000,000 yen

Full year: -43,204,000,000 yen

Now, looking at this, it becomes rather clear - in Q1 there was a relatively modest 25 billion yen loss. In Q2, the loss was nearly 45 billion yen. Then in Q3 (Oct-Dec), they regained about 22 billion yen, and then another 5 billion yen in Q4.

OK, with that in mind, now consider that they've spent the last 24 months in heavy development of the Wii U. The Wii and DS are more than absorbing the loss due to the 3DS. It looks like what drove them into loss was actually Wii U development (research, prototyping, creation of the manufacturing machines, things like that) - that's now effectively finished (I'd assume that the console is up to the manufacturing stage, now), and their main expenditures now, other than manufacturing, would be game development (and marketing), which they'd be doing anyway.

In fact, I wonder if the release of NSMB2 in August might not be to compensate for the high manufacturing cost of Wii U relative to console sales (Wii sales being so low), so that they don't have another quarter loss in Q2 FY2012, purely for the sake of image (otherwise, I'd have thought they would delay it until October, and use it as the start of the holiday schedule).

Fair enough.  Didn't look directly at the figures, Iwata cutting his pay check, and news of Nintendo loosing money 2 quarters in a row made it seem worse.  Though this is still the first time this has happened to Nintendo, they've gone between console/handheld generations without losses.  Wii and DS can't cover the cost of the Wii-U's R&D as you said.  I wouldn't even be surprised if the losses on the 3DS aren't fully being absorbed either, console R&D would have been spread throughout the years, even during when Nintendo was making mad profits.  it's going to get worse for Nintendo's once the console hits full manufacturing too.  Nintendo might not see a return to profit for another year and it will be longer if the Wii-U doesn't sell well.