Ka-pi96 said:
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The thing that must also be understood is that this was a generation where xbox was competitive versus sony. They came out first, had a bunch of features sony needed to catch up on and were the leading platform in sales until the late stages. Despite this they had to lose billions for years to just break even by the very end. With Microsoft's strategy they basically have to hit a homerun in order to break even. When Nintendo hits a home run their streets are paved with gold and they basically crap money bags. When Nintendo strikes out they still turn a profit. From a business standpoint Nintendo seems to be correct in having the strategy they have since they are a small company relative to Microsoft and don't have other business elements propping them up if they would fail in gaming.