Quote:
Originally posted by The Strangler
Now, as for Nintendo gauging its customers, I think I understand it more now that I think about it. Nintendo is a company purely entrenched in the gaming industry. MS and Sony a monster companies who have their hands in multiple enterprises.
My point is that MS and Sony can afford to have smaller profit margins from their gaming segments because they make profits in other areas as well. Nintendo does not have the luxury of making up lost profits with TV or PC operating system sales. So Nintendo is off the hook in my eyes.
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Nintendo is a business, and a businesses main goal is to MAKE PROFIT. Notice the main goal isn't to please consumers? By making consumers happy, it's basically how you sell a product and make money.
Microsoft doesn't play by these rules. I would be shocked if Microsoft made a penny in profit from Xbox. First they're selling at a huge loss, then price drops world-wide. Microsoft is not looking to profit from Xbox. From a business standpoint, Xbox is a complete failure. Basically, Microsoft is willing to lose millions in order to get their foot in the door. But Microsoft also has a monopoly on the PC industry that isn't going away anytime soon, so it's really just taking a hit in hopes that it helps the company in the years to come.
Sony, who has more $$$ than Microsoft, still will profit from software sales. Granted they took a huge hit with the software, they will make it back. They may have a ton of money, but they aren't sacrificing anything but SCEA's budget on PS2. As for Nintendo, they're also taking a loss in hardware sales, but will profit from software sales. Of course, Nintendo is taking a smaller loss, so from the business standpoint, they're the best off because they will take in the most money.
Now really, Sony and Microsoft dropping prices just means less profit. Sony won't be affected much, Microsoft is getting a beating. But Nintendo is smart for making the system cheaper from the start, because while Xbox is now selling at a loss of what, close to $250 per console, Nintendo is still selling at a loss less than half that. Which company is more sucessful? Nintendo.
Nintendo is a business, they need to make money to survive. It's not a matter of who wins the console wars to them, it's a matter of making money. Microsoft could hand out Xbox's for free and easily win the war, but does it really mean anything? These are 3 companies competing, and as a gamer you may feel to see it, the real winner is who can make the most money.
The DVD player is not necessary in a game console. It doesn't hurt, no, but it's not needed. Not all TV's come with built in VCRs, why? Because when people buy a TV they go looking for a TV, not a VCR. When people buy a game console they go looking for a game console, not a DVD player.
When you think about it, having a movie player on a game system is just stupid. Why not have a built in toaster on Danny's Hello Kitty toy? Movies and games are 2 totally different industries, the only relationship is their both seen on a TV. Hell, I didn't see any of you complaining your PSX didn't play VCDs.