they said nothing of royalty rate but rather margins.   the costs of digital is quite high.  it takes a lot of lawyers to keep geohot from buying a ps4 and a lot of network engineers to combat lizardsquad's DoS attack of psn every other day.

But even after a veritable fire sale it's still falling behind PS4 every week. It's competition, yes, but I certainly wouldn't call it strong competition. There's pretty much nothing MS can do to win this gen at this point, they are locked into second place.

exactly. Xbox threw the kitchen sink at PS4 many times this year and what's the end result gonna be? A slaughter WW. PS4 WW for November so far beat X1 and that's despite as you say, the MS fire sale. 

I'm usually pesimistic for the PS as a fan of it but lets be honest the PS4's biggest competition is itself. It's PS4's to lose and I see the gap widening rather than shrinking. 

Also historically Xbox excells for Xmas way more than the rest of the year where as Playstation is the evergreen product. Remember all those years where the 360 took Q4 WW but the gap was erased and then some by the PS3 for Q1,2 and 3. Now we have a situation where PS4 will outsell it 3:1 for Q1, 2 & 3 but as Xmas it will only outsell it maybe 2:1 or 1.5:1. 

And next year some big 3rd party titles like FF and MGS will have a huge effect on the PS4 but not on the X1. Plus Sony has it' sown first parties to counter act MS's. I really see no way they can halt the momentum. 

YEa MS's PR should have already known this was a bad Idea. I didn't have a issue but then I'm not the Majority of the people.  I'm not sure how they could have not seen this coming, I would have been running many poll tests with the public before releasing something so Confrontational. How many controllers did they make and poll test? This should have been routine. So that is exactly what they did, They shot them selfs in the foot, specifically with Europe.  I'm xbox fan and I couldn't believe how bad that they blew it.

However Phil Spencer is a gamer, he gets it and they should have listened to him from the start. I bet he was the Naysayer in the discussions leading up to the release. So I'm glad the right man got the job....

@ OP This is smart business right here.  Not counting your chickens until they hatch, I'm sure their growth will be higher but in the long run being conservative I think is key.

I mostly agree with your post. Just had to focus on how horribly the Wii U was doing compared to even the X1 because that guy was trying to put the Wii U and X1 in the same category when they are not. The X1 is selling okay in some regions while the Wii U is not really selling well anywhere. The poster I originally quoted is very Nintendo only biased so I felt his point of view made no sense. It basically says Sony won a console war sales lottery by doing nothing and has no competition because everyone else fucked up. When in reality the Wii U did the most failing. The X1 cannot be said to be totally failing, even though I think it will never come close to the sales of the PS4.

wrong. The PS1 took a huge chunk of the audience the N64 was targeting. Now I do kinda agree partially, the PS1 expanded the gaming market where Nindendo could not (notably Europe), but particullary in Japan the PS1 took the audience Nintendo thought that would have with the N64.

Pff, FUCK SONY, PS4 will outsell PS2 !!!

No, N64 and even Saturn didn't target or appeal to the same audiences because they didn't have the same 3rd party support. Hence, Playstation had a massive advantage with 3rd party support.

Playstation didn't expand the gaming audience, 3rd parties did. Sony just road their coattails. Without 3rd party support Playstation is nothing.

The Xbox 360 was a success because of price and it was a console that finally had support at par with Playstation. The Xbox One again has great support and that's why its still achieving solid sales. Meanwhile platforms with abymsal support like Wii U and Vita are struggling.

great news for sony. a profit is a profit.