Vinniegambini said:
Tarumon said:
Please remember this:
Sony LOST money during the PS3 era even at the much higher price point. Sony lost money every year from 2006 up until 2010. Sony literally has been in the gaming business for FREE from PS1 to now. That's what PS3 did to them.
If Sony comes out with another grand subsidy plan, we are not looking at Nintendo by the way, who also happens to have the cash to burn if caught in a death match, Sony is fighting a battle they cannot win! Microsoft is too profitable, too cash rich, and they can match you dollar for dollar for performance and just wait until you DIE. Only company that has beaten them has been Apple via innovations. Netscape, Yahoo, remember Sun Microsystems?
If PS4 lacks any innovation and only competes on specs for this gen, we are looking at a financial disaster waiting to happen. They literally would need to spinoff Playstation as a brand to raise some cash as Sony simply doesn't have the finances in place to dig another multi-billion dollar hole. PS3 was a product disaster, I hope Sony doesn't try too hard on PS4. Pleasing cheap fans who won't pay for even the cost to produce is a strategy destined for failure in the long run.
Edit: maybe I'm just a little too old, but news of Dell lately brought back memories of the Wang, Sun Micro, Compaq, Gateway.... MSFT made its fortunes by monopolizing the OS and just profitted from the greatest fool's gold ever created in business. The interchangeable parts. When hardware manufacturers were led astray by the Wintel empire, little did they know, they were all going to become extinct. Everyone became assemblers, no longer even capable of innovations. I feel just a tiny bit uncomfortable seeing the video game console business veering that direction. Superchunk's chart is starting to look like a Dell, or Gateway, or Tigerdirect product comparison. Same Manufacturers, same OEMs possibly. Gimped PCs in a smaller box, costing more than they could sell, and costing a lot for a game to look great, taking down one game company after next.
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Looking at their financial reports, the PS3 eliminated all profits from the PS2 and PS1 era. Seeing as their trajectory is going for the hardcore gamers once again for the PS4, I see no different scenario.
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Instead of hardcore, let's just say mainstream console gamers. PSbox has 60% to Nintendo's 40% (but it's really more Wii 70% during its peak, PSBox 80% now). Going after the biggest part of the pie makes sense for Sony, especially considering Nintendo is a much stronger competitor than MSFT is at Nintendo's core market. When it's 1 vs 1, Sony tied MSFT this gen. But there is a huge difference in going 1 v 1 against Nintendo on handheld, because Nintendo voluntarily gives up portions of the market by limiting themselves to value engineering. So even though DS>>PSP, 3DS>Vita, Sony could make money as long as it doesn't stumble over its own toes.
Just like every living room has enough room for a PSBox And a Wii, there is room competing against Nintendo profitably.
Going against MSFT is a different story. No one has ever won going against MSFT, not even Steve Jobs. You can only win going away from them. MSFT wants blood. There is no way around it. Their culture is much less creativity, innovations, more corporate gobbling, seizing the next budding technology...but somehow choke it to death. So unless the gaming industry can somehow come up with enough innovations that drive people towards spending, it's not looking too good at the moment. I know this sounds like I hate MSFT, but that's just me speaking as a long term shareholder of MSFT and just watching them over the years boast of every single NEW business segment (that someone else pioneered) and just butchered everyone including themselves while at it.
