Originally posted by ((The_Anomaly))
No you don't understand, they arnt losing money from "shit marketing" they're making systems and selling them for LESS then what it costs them to make the system. So for every system they sell, they lose money. Microsoft did the same on Xbox, and now are doing the same on the 360. In the last generation era Microsoft saw almost a ZERO (0%) profit from the Xbox console because of this same reason.
No, I get it, and they are losing money from shit marketing, like I said before, its as easy as Supply and Demand. They spent a shitload of money into making the consoles and there not even on the market to buy. Thats not gonna turn a profit my friend.
It cost Sony an insane amount of research and project development for the PS3, and the same for Microsoft. It will take YEARS before either company to start making any actual profit from the consoles because of what it costs them to make it and because of the money they spent on development of the systems. Until the tech becomes less costly TO THEM as the years go on, then they [I]might see some profit. But as of right now both Sony and Microsoft are in the hole for every PS3 or Xbox360 they sell, its called long term profit. But its a risk because they might not actually sell what they think they will, and they could get screwed (like with the Xbox, though Microsoft didn't ever think they were going to make any profit from the first Xbox)..[/B]
Sony is a billionare dollar industry, and both them and MS are worth way more than Nintendo(which is also a billinare dollar company in itself which says alot right there), so they can afford the research, believe me. Like I said, both companies are worth more than Nintendo, and one reason why is because they do more than just the Game Industry, but when they sell a shitload of Playstations and Xboxs they get more consumers buying more of there products other than games thus raising there revenues, like you said its about the long term, but more specifically, its about the big picture. Your'e coming off as if the PS3 and Xbox 360 is gonna run both companies to the ground, but the chances that will do nothing but help both compaines are more likely than they were to hurt both companies
[i]Nintendo is the only of the three currently that is making profit off they're system from day one. And they made a HUGE amount more profit then Microsoft did with the Xbox (even though it sold more) because they're development costs weren't as much, and with the Wii, because the tech isn't as costly. (though the Gamecube specs were significantly better then PS2's)Right now Sony and Microsoft are banking on they're systems selling a specific amount so that a few years down the road they might see some profit from they're investments. Nintendo on the other hand is seeing profit from the Wii right now as we speak. [/B]
Yea, and the chances of both Sony and MS profiting overall from there products are very good, at the very least they will come out even from the PS3 or 360 but that would still bring there business revunies to an increase thuse making a profit, like I said, big picture. But I am rooting for Nintendo out of the 3, like I said before, best case scenerio for gamers would be if Nintendo outsold the PS3 and Xbox 360, and they have a good chance of doing that in this generation of consoles, with the Gamecube, not so much. Not that the Gamecube was bad, but Xbox and PS2 were better equipped and around the same price so chances of Gamecube outselling them were not so much.