Xbox Division Doubles Profit

[steaky]

Originally Posted by Citizen G'kar

Not really. The console market has always only been big enough for 2 significant players if that many. The xbox was a huge disaster and any company other than Microsoft would have been bankrupted by it. Instead of plowing money into its core businesses, the entire tech industry lost 3 years of progress due to Windows Vista and Office 2007 being a big steaming pile of shit and Microsoft plowing money into hugely unprofitable home entertainment ventures.

And now, both microsoft and sony are highly unprofitable. If Sony didn't have blu-ray, the PS3's losses would not be worth it (and it still might not even with Blu-Ray) and if Microsoft didn't have a ton of money in its pockets and money in its eyes for so-called "streaming of content" and microtransactions, it would not be profitable either.

Truth be told, Microsoft has always been grasping for straws in this business and the value-added it brings to the console market is very little. Its console design is shoddy. It doesn't really produce any of the key technologies in its consoles instead licensing them from other companies. It's software is mainly a beefed-up gamespy it charges money for. And its "first-parties" aren't that great or deep with its golden goose, Bungie, having now spun off and demanding a bigger share of the profits. Microsoft has acquired its way into the industry and aside from Bungie and the luck of ATI having a really good design cycle, its record is spotty.

Given the way profits has broken down, the industry really can only support 2 players. What those 2 players will be in 10 years from now is hard to fathom.

The industry has expanded quite a bit since Sega dropped out. Right now the industry is in a heavy investment phase but I think it will sort itself out. Your points are totally valid though but its really not clear if 3 consoles can be profitable or not right now for sure.

[Slayer]

Originally Posted by steaky

The industry has expanded quite a bit since Sega dropped out. Right now the industry is in a heavy investment phase but I think it will sort itself out. Your points are totally valid though but its really not clear if 3 consoles can be profitable or not right now for sure.

It could easily support 3, but MS and Sony would have to change the way they go to market. Nintendo managed to make money on GC because of their pricing strategy, there is no reason the other 2 companies cant do the same. Yes it might result in smaller market share, but at least it would be a profitable one.

[Indy_aka_Rex]

Originally Posted by Slayer

It could easily support 3, but MS and Sony would have to change the way they go to market. Nintendo managed to make money on GC because of their pricing strategy, there is no reason the other 2 companies cant do the same. Yes it might result in smaller market share, but at least it would be a profitable one.

And that's what all businesses should do: Forego taking risks that are beneficial to consumers in favor of making a quick buck.

You're the kind of consumer companies like Nintendo love.

Nintendo NEVER sells hardware that loses money, that's always been true, dating back to the Famicom/NES, they're a company that in 30 years within this industry has changed NOTHING of the vast majority of its practices to appease consumers or third parties, why? Because of people like you. You're willing to take whatever they dish out and you'll buy it... even if you sorta regret it you'll still think "Oh it's Nintendo, they can't do any wrong!".

[Slayer]

Originally Posted by Indy_aka_Rex

And that's what all businesses should do: Forego taking risks that are beneficial to consumers in favor of making a quick buck.

You're the kind of consumer companies like Nintendo love.

Nintendo NEVER sells hardware that loses money, that's always been true, dating back to the Famicom/NES, they're a company that in 30 years within this industry has changed NOTHING of the vast majority of its practices to appease consumers or third parties, why? Because of people like you. You're willing to take whatever they dish out and you'll buy it... even if you sorta regret it you'll still think "Oh it's Nintendo, they can't do any wrong!".

Actually I'm not a huge Nintendo fan, and never have been. I never much cared for Mario and all that stuff. You really dont know me at all Indy so stop assuming you know what I like and dislike. I am willing to bet however that next generation MS and Sony follow a business model a lot closer to Nintendo's.

P.S. If you think the Wii wasnt a risk you really are a fool. I may not like the system but I admire the guts it took to bring it to market.