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Forums - Sales - The race for 2nd place, Is i worth it?

Both Sony and Microsoft made profit in 2 of the last 3 quarters so it would be foolish for them to stop now that they are finally getting into the black and making money...



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

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Aj_habfan said:
Gamerace said:
Ultimately it's a business. If there's no money in being second then it's simply not worth it. Although both companies have secondary agenda's - Sony to push Blu-ray and MS to keep Sony from owning the world's livingrooms.

So far in this gen coming second has come at the expense of billions of dollars. MS is at least starting to recoop initial loses, but Sony is still just losing money. If either of them will come out ahead by the time this generation is finished is still open for debate.

On the flipside Nintendo was very profitable in 3rd last gen.

Who made the profit last quarter? Who is cutting their prices in a couple weeks? I think Sony is doing a much better job of recooping losses.

Nintendo was very profitable because they owned the handheld market, gamecube was a small contributer.

 

They still didn't lose money with the Gamecube alone.



How many cups of darkness have I drank over the years? Even I don't know...

 

Godot said:
Aj_habfan said:
Gamerace said:
Ultimately it's a business. If there's no money in being second then it's simply not worth it. Although both companies have secondary agenda's - Sony to push Blu-ray and MS to keep Sony from owning the world's livingrooms.

So far in this gen coming second has come at the expense of billions of dollars. MS is at least starting to recoop initial loses, but Sony is still just losing money. If either of them will come out ahead by the time this generation is finished is still open for debate.

On the flipside Nintendo was very profitable in 3rd last gen.

Who made the profit last quarter? Who is cutting their prices in a couple weeks? I think Sony is doing a much better job of recooping losses.

Nintendo was very profitable because they owned the handheld market, gamecube was a small contributer.

 

They still didn't lose money with the Gamecube alone.

 

 Yeah. Even with a Wii flop, Nintendo would probably still have been able to make a profit. Maybe not directly on Wii, but by DS.



http://www.vgchartz.com/games/userreviewdisp.php?id=261

That is VGChartz LONGEST review. And it's NOT Cute Kitten DS

RROD makes early release completely wrong.

The Wii makes this advantage look incorrect.

I actually think both systems, the xbox and ps3, are so similar they will never distinguish themselves and therefore split any market between themselves. Its a race for 2nd place but neither has an advantage i can see.

BTW BR is irrelevent thus far so don't play that card.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

Did it help the Xbox at all last gen?

Though to be fair. Sony still thinks they'll win first!

While microsoft has moved off a "second place" stance and talks more of revenue.



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Now that it seems almost 100% certain the Wii will finish 1st, the most interesting aspect now, IMO, is whether or not the PS3 will be able to surpass the 360's worldwide install base before the 1st 8th gen console is released.

A lot of people here seem to think the PS3 will indeed do it, including many long time members.

Despite finding who ends up in 2nd place interesting, I feel because of the way things are going, 2nd and 3rd don't matter since most 3rd party games are now multiplatform and it looks like whoever ends up in 2nd will do so by a small margin.



Oyvoyvoyv said:
Godot said:
Aj_habfan said:
Gamerace said:
Ultimately it's a business. If there's no money in being second then it's simply not worth it. Although both companies have secondary agenda's - Sony to push Blu-ray and MS to keep Sony from owning the world's livingrooms.

So far in this gen coming second has come at the expense of billions of dollars. MS is at least starting to recoop initial loses, but Sony is still just losing money. If either of them will come out ahead by the time this generation is finished is still open for debate.

On the flipside Nintendo was very profitable in 3rd last gen.

Who made the profit last quarter? Who is cutting their prices in a couple weeks? I think Sony is doing a much better job of recooping losses.

Nintendo was very profitable because they owned the handheld market, gamecube was a small contributer.

 

They still didn't lose money with the Gamecube alone.

 

 Yeah. Even with a Wii flop, Nintendo would probably still have been able to make a profit. Maybe not directly on Wii, but by DS.

Actually like the GC before it, Nintendo would still make a profit off the Wii even in 3rd place.   They sell them at a profit and then don't rely on game sales to offset console losses like Sony & MS.  GC may not have generated a lot of money itself but it's software sure did.  But obviously GBA was far greater revenue generator and then DS after it.

 



 

Kasz216 said:
Did it help the Xbox at all last gen?

Though to be fair. Sony still thinks they'll win first!

While microsoft has moved off a "second place" stance and talks more of revenue.

 

 To be fair, 2nd place last Gen is comparing my post count to Soriku, This time around, being in second place will get you Games the Xbox wish they could have had.

The wii late third party support will allow any of the HD consoles to really survive.



 Next Gen 

11/20/09 04:25 makingmusic476 Warning Other (Your avatar is borderline NSFW. Please keep it for as long as possible.)

totally but only because i don't play enough like rol he is a real addict



 "I think people should define the word crap" - Kirby007

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psrock said:

It's been an interesting Generation so far. Nintendo is back on top and Sony is struggling to get their act together. However, the most fascinating company thus far for me has to be Microsoft.

They made a great choice by releasing their console first, but barely took advantage of it in the first year.  It was really hard to find a 360 early on because MS sent out so few to retail. Then came problems with the hardware which they avoided until they had to admit was failing at an alarming rate.

However, one thing was clear throughout, they were there to compete, and they were not going to forfeit easily even if it cost them. Is it worth it?

Oh yes, with the recent price coming in September, MS has assured their fans that this war is not over yet and they will do anything to maintain or even increase their lead on Sony no matter the cost. The problem for Sony is that they can't compete with MS money wise, and with so many losses already they can't afford to compete this way.

Does being 2nd worth the cost of revenue or is bragging right that valuable?

 

 

 

I think the price cut is definetly in response to PS3 momentum but, they have all new chipsets so they were due for the cut.  They are making money even with the price cut on the 360.  Just not as much.

 

For MS it wuld be a huge coup to come in second place after only there second console and as you pointed out they made a lot of errors along the way



PS3, WII and 360 all great systems depends on what type of console player you are.

Currently playing Call of Duty Modern Warfare 2, Fallout 3, Halo ODST and Dragon Age Origins is next game

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