| MAFKKA said: I have a question. (long post, but i guess you could skip down to the bold part) Hardware tend to be sold with a loss, right? So why is "console sold" the main thing among bickering girls in these wars? Why wouldn't you be more interested in profit? Serious question. Why is consoles sold such proof of success, when hardware goes for a loss? Software and overall extras (downloads, add ons, adapters, keyboards.. etc.) is usually the moneymakers and tends to be profitable from day one. So once again, why isnt the War about profit instead of who is loosing more money at first? Never quite understod that part. Obviously i know that hardware too will start being profitable at a certain point. But at this point, a generation of 3-4 year old (young) consoles where the tide has just about started to turn and consoles barely being profitable, why is it important to know who's sold more hardware rather than which division is more profitable? The later may ofcourse include the profit generated by hardware in the end(might not change anything, but it would make more sense!) Im not trying to start anything with this post. I truly dont understand this cat fight with consoles sold. It all come down to profit for these companies anyway, because i highly doubt that any of them are thinking "yey we're wining the war", except for when they need to push the market their way with statements that they're doing so much better with sales than their competition. SO.. Why isnt success measured in profit? |
Market share is sometimes, just as important as profits, in the long term health of the console. Nintendo has the freedom, since it's first party games are selling well, BUT they make money on each console, so that is a plus as well. The primary reason of M$ discontinuing the original Xbox was due to a poor contracting in getting the scale of the cost to slide down, where as the 360 has lifecycle cost reduction in play. The ps3 of course has the same thing as well, but it's selling price is trailing the production cost, which is why Sony is holding off on a price cut. Some say M$ held off on a price cut, due to RROD warranty cost...which makes sense. Nintendo’s 1st party plan worked this gen, but it didn't in the last, so it's not foolproof.








