This is no hard evidence that a PS4 or new Xbox console will be non-existent, but the figures expressed here are worth taking into account. Alex St. John, CEO & Founder of WildTangent (a PC game network), seems to think that after the PS3 and Xbox 360 have come to an end, Microsoft and Sony will leave Nintendo to run a one-man race.
Quote:
Sony is not the company they use to be and the Playstation 3 is a market failure. Sony will never recover the billions they lost on the current generation of consoles. Sony says we’re not making another for ten years, which is code for we can never make back the billions we lost on PS3, let alone convince our executives to make one again.
Microsoft has a hole mile deep dug in the middle of Microsoft’s Campus to bury the billion dollars of broken Xbox 360’s they’ve got. The Xbox business is not a profitable business for them. It’s only become incrementally profitable for them after many years, and billions invested. To give you some perspective the Xbox 360, which is the second most popular console in the U.S; All Xbox revenues combined; create less revenue than World of Warcraft subscriptions. The entire 360 software business is minuscule compared to one PC game.
So the interesting observation, is that both Microsoft and Sony are in a position where they’re unlikely to ever have the motive to invest the billions into making another generation of consoles.
|
Sony are currently selling the PS3 for much less than it costs to manufacture and Microsoft lost billions with all the hardware faults the first Xbox 360's had. The next generation is still a couple of years away, so it's anyone's guess what Microsoft and Sony choose to do.
Nintendo has already confirmed that they are working on a "Wii2".
Source:
Sony and Microsoft to exit console wars after PS3 and Xbox 360? - GAMER.BLORGE
Linear Mode
