Dr.Henry_Killinger said:
On the contrary, Nintendo is selling there console at a loss for basically the first time ever, and as for Sony and MS their consoles are at their smallest loss but considering shipping, storage, and R&D fees the console are still a loss intially. We are already hearing complaints about how next gen isn't powerful enough, if these consoles sold for profit they would barely be improvements on last gen. With PC and Mobile gaming closing in on consoles from both sides, there is no wai consoles could survive like that. Not physical consoles any way. Somebody is going to have to pay for the hardware investment. You say its as easy as stopping the loss leader model, but that means more expensive consoles (the 600$ ps3 was sold at a 200$ loss, but at 800$ you could easily spend that money on a PC that will have more utility and power) or even weaker consoles, which mobile also threatens, cause its growing more powerful a lot faster than consoles can. |
The Wii proved that high-end expensive loss-leading hardware wasn't a requirement for selling consoles or being successfull.
As for "Improvements" over the prior generation, even if Sony and Microsoft wen't with GPU's half as complex as they did, image quality would still increase dramatically due to gains in efficiencies (Contrary to popular belief, flops isn't an accurate denominator to gauge a platforms performance), generations would just simply have to drag on less.
Personally, console graphics have never impressed me, then again I am an enthusiast-level PC gamer with a PC that has in excess of 10X the PS4's performance, so I run all games with as much bells and whistles as possible.

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