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  1. #1
    Rep points are my LIFE!! Groundbeef's Avatar
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    Quote Originally Posted by bacchanal
    Those market analysts or whatever they are that try to guess these things aren't neccessarily correct. They said that microsoft was losing money on the xbox after microsoft itself said that they were making a profit on the hardware.
    Gonna have to differ on this one with you. Even Microsoft has admitted to losing money on the original XBOX and XBOX 360. I will provide links if you need. Also, there are many others written on the PS3 will be a money loser for Sony.

    This is not guessing in that they are blindly shouting out numbers. It is pretty easy to tear these consoles apart, and analyze the components. Without a doubt in the inital phase of the console they are a money loser. As time goes on, and the experience curve gets better, then MAYBE the mfg (sony or MS) will make money due to price breaks on quantity of parts ordered, or the natural downward pressure on computer parts pricing as time moves forward. However, it is an established fact that MS and Sony do not make money on the consoles (in the beginning). Sony is making money on the PS2, but that is due to economies of scale...after 80 million units, you better be making money!

    Nintendo is a different animal. They generally make money on the consoles (albiet maybe a few dollars per console) but, they are also not cutting edge. When Xbox and PS2 were using dvd, game cube went with smaller disks. N64 was a cartridge, not a disk, and so on.

  2. #2
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    Quote Originally Posted by Groundbeef
    Nintendo is a different animal. They generally make money on the consoles (albiet maybe a few dollars per console) but, they are also not cutting edge.
    I definitely remember GameCube at release was priced below the manufacturing cost. I remember it was quite cheap compared to PS2 and XBox.

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