Sounds like a smart thing to do with that kind of crazy demand.

I didn't read 10% of that but it seems impossible! I opened up my Wii and found it was nothing but a Texas Instruments calculater inside and some wires. How could they lose money? Also, people said they limited supply on purpose to create artificial demand. Those people were assholes.

Which has always been a ridiculous idea.  No company is going to throw away sales now on the chance that they MIGHT get more sales a month later.  One in the hand is worth two in the bush, especially when dealing with money.  Any business person knows that a consumer who can't buy X product now might just buy Y product instead of waiting.

On topic, that was an interesting article and I agree with most of it.  Sony is committed to Playstation because, quite honestly, it's their best hope.  Microsoft wants to use consumer electronics to drive use of their other products and services.  I think some in Microsoft are committed to Xbox but I believe others see it as a means to an end.  Those are very different perspectives, which is probably why the original XO was designed with Microsoft's goals in mind rather than what consumers wanted.

I'm pretty sure that Nintendo were making something like £6 on each unit sold. They were difficult to get hold of for 18 months because they couldn't physically make them fast enough. Does this bloke have any sauce to go with this..? Sounds like a load of old bollocks to me.

The Wii was an insane sales beast, the like of which we've never seen before and probably won't see again.

Nintendo was making a profit on the Wii, it was an overclocked Gamecube with marginally better internals, how the hell would they not make a profit? Whoever wrote it obviously didn't do their research. 

I always read Rob Fahey's articles, as I believe he is probably the best writer/analyst when it comes to the financial side of the gaming industry. And this is another very well written and researched article.

I need to see a source for this claim, as it contradicts basically everything else out there.

That's really smart if it's true.

Why would we need to emphasize something we all know in our bones is always right though?