PS3 blinded fanboy...

Where do you get your figures ??? I would like to know ?? Sources ??

MS in the red ??? You are talking about Microsoft, the most profitable evil empire !

Some quote from 2006 :

"

The combined materials and manufacturing costs for each device come to about $806 for the model with a 20GB hard drive, excluding the cost of the controller, cables, and packaging, iSuppli said.

With a suggested retail price of $499, that would mean Sony is taking a loss of about $307 on each console it sells. The differential for the 60GB model is less, with the cost exceeding the price tag by $241.

By comparison, the materials and manufacturing costs for the hard-drive version of Microsoft's rival device, the Xbox 360 are $323, iSuppli estimated. That's less than the suggested retail price of $399.

"It's common for video-game console makers to lose money on hardware, and make up for the loss via video game-title sales. Still, the size of Sony's loss per unit is remarkable, even for the video-game console business," iSuppli said."

The price cut is interesting : Hardware manufacturer generates loses or poor marging by selling consoles. M$ is making money from the XBLA (huge money according to E3 declaration) and the games, not the consoles. Since the install base of PS3 is slowly catching up (20,5 millions XBOX360 vs 15 millions PS3 according to VGchartz), they are willing to attract more customer via a cheaper console and generate more marging via games and XBLA, I suppose ...

Don't forget that the strategy of M$ is to generate sales via online content, while Sony puts hope in the adoption of the Blue-Ray media. The next move of Sony will be very interesting to see ! :)

This is personal opinion/analysis of course...

If you are making large profits on game sales. A small loss on consoles in not a bad business move. Take a small loss for long term financial gains.

Reading over much of this thread is entertaining. In the end, yes, M$ has resources beyond normal companies but not making a profit for so long will start to take it's hold. they already hold an unfair advantage in the OS market which no one can really do about.

To be honest, Wii has won this gen, no questions, PS2 won last. X-box brand is on it's 2nd stab at it and is failing again. If they want to continue in the market, they have to start on development on their next console, which will start costing money again. And it's not a garentee that will make money either. If I were a shareholder I'd prefer them to back out and stick with the money making departments.


@psrock
You earlier said this:
"they are known for killing the competition with price cuts, Bundling IE windows, and more."

the Bundling IE with Windows thing you mention above has got them into trouble with the EU, they currently owe over $1billion for anti-competetive behavoir or something. As in abusing their position in the OS market to get a product into a dominating stronghold, as in IE. They need to be careful as the EU is not affraid to fine them further, I'm sure.

True, the figures of Nintendo are way out of charts compared to the 360/PS3 ones. Wii is about GAMEPLAY, not technologies ...

But still, PS3 FANBOYS keep saying that they will achieve domination by technology ... urgh

Even then, Sony has something out of those technologies, Blu-Ray, if this is Sony's last game console gen then they can be in the knowledge that Blu-ray succeeded in the HD market. What does M$ have?

M$ wouldn't have gained anything directly, however you can say they've destroyed (or at least weakened) the Playstation brand .  Many believe the threat of Sony's PS cutting into Microsoft is the reason they got into console gaming in the first place.

Don't make me laugh.

Now, I'm just confused. In what way was Playstation ever threat to M$?

No no, there is no such thing as destroying a brand.

Micrososft is focused on ditributing softwares/contents via the web and via XBOX Live. That is the strategy, what they consider the futur. Microsoft NEVER invented anything. It is a pure copy of the Apple model with the duo iPod/iTunes.

The strengh of MS is its grip on the PC market (Software and technologies) and the internet.

MS vs SOny ? -> This is the challenge between a software company and a technology company. It is about different business models.

This domination about the number of consoles sold is the wetdream of lifeless fanboys.

I'm pretty sure that MS can achieve better revenues with less consoles on the market. And THAT IS WHERE the question of the pricing cut becomes interesting. 

IT KEEPS FUELING THE WAGER ! Not what it the best console, but who took the right track to the futur ??

See my point ? (Finally some intersting debat above that Fanboys shit which initiated this post).

They never did, Nintendo was third last generation with a difference of 3 million consoles.

And why should this show weakness? It is a weakness to reduce the price for a product? MS is exerting pressure on Sony. Sony isn't profitable now, they said, there won't be a pricecut. A pricecut would hurt sony more than it hurts MS. And in November, the 360 will be 3 years old. A $300 price-tag for a 3 year old console isn't desperate or "weak". It is just the normal business. I think quite a few consoles from the generations before crossed the 299$ earlier.