

Aftermath of Sony Betting Its Game Division to Help Its Movie Division: over $1 billion in losses - chaostheory
http://blogs.guardian.co.uk/technology/2007/10/26/playstation_3_losses_now_over_1_billion.html

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aston
And counting!

The worst part of it is that Blu-ray still isn't considered the industry
standard. Maybe they should've made a Blu-ray attachment for the PS2 instead.

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chaostheory
they should have - but they wanted to help their movie arm... not to mention
they should have thought about putting out (by helping blu-ray to become the
standard with ps3) something easier to program for...

then again MS will also eventually lose money on the 360 as well, for making
faulty hardware which we added a 3 year warranty on. Estimated cost: 1
billion.

Looks like Nintendo will be the big winner in this war

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cellis
"Looks like Nintendo will be the big winner in this war"

Pretty sure NOT.

Now that MSFT has eaten Sony's lunch (and is (eke-ingly) profitable), its only
a matter of time before they consume Nintendo. You know the drill, embrace and
extend, fast follow...

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chaostheory
I really doubt that considering: 1) even if Nintendo lowers the price of their
console, they still profit from the sale of each one; both MS and Sony still
lose money on every sale of their consoles

2) game development on Wii (and DS) is much cheaper than 360 or PS3. Not to
mention sales are great on Wii. Ubisoft made a killing last holiday season on
the Wii. Publishers like EA that put their bets on Sony and MS didn't post
phenomenal sales and profit in the same quarter. Publishers are now shifting
their focus on the Wii. Consequently the Wii will probably have the biggest
library (something that made PS2 king).

3) based on current growth rates, the Wii is already dominating 360 and PS3;
Nintendo already has the mindshare of normal people which normally don't play
games

Nintendo has already eaten both MS and Sony's lunch (especially Sony's)

maybe in the next war MS will be able to dominate (they have improved afterall
- except for the hardware problems)... but they won't in the current one

~~~
aston
You're right. But a few corrections:

1) Microsoft makes money on the most expensive Xbox 360 (the Elite) for sure.
The margins are probably close on the normal 360, and maybe taking a tiny loss
on the new Arcade SKU.

2) While the Wii is cheaper to develop for, the biggest moneymakers have all
been on the Xbox 360, and I suspect that'll be true for a while. The big
sellers are all multiplayer online, and the Xbox LIVE stuff is best of breed
there. That said, Nintendo's going to definitely see an uptick in 3rd party
games, if only because there haven't been all that many so far.

3) The Wii isn't actually dominating the Xbox 360 in the US in absolute terms.

