Nintendo--VS--Microsoft

Perfect Stu · 07-13-2003, 11:03 AM

If any company were to pull out of the videogame market in the next 5-7 years, I'd say it would be Microsoft. I know they're an enormous company, but they're the only company of the 3 thats losing money (and a lot of it) from their videogame division. Now, they do have a lot to spare, and they seem very dedicated...so I don't see them leaving anytime soon...but big company or not, investors get pissed off when the company is taking huge financial hits. I don't think the XBox will ever become profitable...but I do think that Microsoft has to make sure that their next system will be.

For Nintendo...it's hard to tell. They have a system going that seems to keep raking in moderate amounts of profit consistently, but I don't know how long that can go on. Over the past 7 years they've lost a lot of market share, and the GBA seems to be their foundation. If Sony's PSP can seriously compete with that, we have a whole other story.

Sony is the market leader, and they've recently invested a TON of money into future technology. They have a long term plan in place, so I don't see them stepping out of the videogame market in a LOOONG time.

gekko · 07-13-2003, 11:55 AM

Stu got it. Who's beating who in the industry means nothing, it's about who's making money. Nintendo and Sony are both bringing in profits, Xbox is not. They are already taking steps to try to reduce losses on Xbox, but it won't end them. With Xbox 2, Microsoft needs to make a machine that's profitable. If not, it would be a tough sell to corporate execs to let them go on.

There's no garauntees what will happen next generation, history will prove that. Sony has made large amounts of money, and has room to take some initial losses on PS3. They also have enough money to go on if PS3 flops.

Nintendo has been bringing in profits all through N64 and Gamecube's day. You can say they failed, but in all reality, they're not. N64 brought in profits, Gamecube is bringing in profits. Nintendo's far from being in a bad situation financially, because they aren't losing a dime. You don't drop support of something that's bringing in money. Market share means nothing, this is a business, and it's making money. That's all that matters.

Dyne · 07-13-2003, 12:49 PM

I agree. There's a word I'm looking for Microsoft's plan that fits them perfectly. Ah yes, I'm thinking of... demented. In a good unoffensive way, really. How do they keep going? I wonder if there's going to be a miracle or something and one game sells unexpectedly well. They've already sold North America and Europe.. if they can sell in Japan I'd say they could stay in no problem... but right now? They want to stay in so they can make.. great games, and have other people to enjoy them? Maybe they're like a big charity, or something. I've never seen Microsoft so "generous", but more like "demented".

Bond · 07-13-2003, 05:55 PM

Quote:

Originally Posted by Dyne

I agree. There's a word I'm looking for Microsoft's plan that fits them perfectly. Ah yes, I'm thinking of... demented. In a good unoffensive way, really. How do they keep going? I wonder if there's going to be a miracle or something and one game sells unexpectedly well. They've already sold North America and Europe.. if they can sell in Japan I'd say they could stay in no problem... but right now? They want to stay in so they can make.. great games, and have other people to enjoy them? Maybe they're like a big charity, or something. I've never seen Microsoft so "generous", but more like "demented".

You fail to see the larger picture. Currently, yes, Microsoft is losing money on the Xbox (although they are still making around eight billion dollars a quarter) but they are not in this for one generation. Microsoft is in the videogame market for the long haul. They need to spend a lot of money at first to get situated and make a name for themselves, and I would add that they are doing that quite successfully. In the next generation and generations to come they will make up their deficits and begin to turn a profit. Microsoft is a company full of intelligent people that knows what they are doing. Although we may always not like their products (Windows), they make a hell of a lot of money, and that's the bottom line. I wouldn't second guess one of the richest companies in the world.