Intrinsic said:
eFKac said: Hmm MS must be losing a lot of money on every Xbone sold. Constant promotions, price cuts, free games. Heh guess they're lucky it doesn't sell that much. Hopefully Sony doesn't counter, profits are more important to them than market share. |
I don't know about "losing a lot f money", I mean nothing can really be as bad as the PS3 osing $280 on every console even when selling them at $600. If sony could brave that then MS can definately do this. And this is what they need to do.
I have always felt that becase of how quickly the PS4 pulled ahead that this would be PS2/XB pricing wars all over again. Sony will match it. Cause what you are missing is that market share = profits. And sony had already indicated that they were more interested n growing their market shae than they were making a profit on every box sold.
What all this means is that by this time next year you would be able to buy a PS4/XB1 for under$250. Really good for the industry if you ask me.
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Sony of 2006 is not Sony of 2014, if they would have to lose 300$ on a console sold today, they would be bankrupt by 2016. It lost them billions back then. Sony is past the razor blade business model time, that's why PS4's philosophy was very different than PS3's and for the better in their current financial condition.
If I'm reading this right, you say MS can take big losses on Xbone? Well sure they can, but there is a finite patience of shareholders who will have years of division bringing their profits down, someone will finally say fuck this entertainment shit, let's double down on the enterprise divisions, they're always giving huge profits.