Unless they change, Sony and Microsoft are screwed next-gen.

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Popadophalis

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#1 Popadophalis
Member since 2007 • 1587 Posts

Let's face it Microsoft and Sony have had an absolute nightmare trying to be profitable this gen and it's looking to be same sotry next-gen.

Let's start with Microsoft, they've been forced to spend over 1 billion dollars on hardware issues and have no doubt lost another couple billion on the 360 project as they did with the original xbox.

Sony has had an even rougher time financially this gen. Howard Stringer has recently gone on record saying that losses on the PS3 has equalled their total profits on the entire PS2 generation and that they will likely never fully recover their initial investment on the the PS3.

Investors won't stand for a company throwing money away and it's awfully hard not to look at the Wii's amazing success so with that in mind what do you expect Sony and Microsoft's will do next-generation to become profitable?

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TOAO_Cyrus1

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#2 TOAO_Cyrus1
Member since 2004 • 2895 Posts
They will push their secondary revenue streams hard (IE digital dowbnloads) and MS will make damn sure to build a reliable system. They certainly wont go for a weak cheap system, it only worked for the Wii because of motion controlls which gave it the perception of advancement despite the sub par hardware. Next generation motion contorlls will be old news and wont be good enough a hook. I expect Nintendos system to compete graphically.
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Nike_Air

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#3 Nike_Air
Member since 2006 • 19737 Posts

  1. gimmicky controller + standard controller in the box
  2. wireless headset standard
  3. slight graphical upgrade , blu-ray drives will be faster , lots of ram
  4. huge hardrives , I mean huge
  5. 360 will have the things the ps3 has now as standard - blu-ray , wireless , bluetooth , etc
  6. both will have b/c
  7. only one sku

$399

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SpinoRaptor

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#4 SpinoRaptor
Member since 2006 • 2419 Posts

Sony has had an even rougher time financially this gen. Howard Stringer has recently gone on record saying that losses on the PS3 has equalled their total profits on the entire PS2 generation and that they will likely never fully recover their initial investment on the the PS3.

Popadophalis

That's a lot of money lost :o

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SpinoRaptor

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#5 SpinoRaptor
Member since 2006 • 2419 Posts

  1. gimmicky controller + standard controller in the box
  2. wireless headset standard
  3. slight graphical upgrade , blu-ray drives will be faster , lots of ram
  4. huge hardrives , I mean huge
  5. 360 will have the things the ps3 has now as standard - blu-ray , wireless , bluetooth , etc
  6. both will have b/c
  7. only one sku

$399

Nike_Air

I doubt all that will only be $399 :?

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Al3x_n90

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#6 Al3x_n90
Member since 2007 • 2561 Posts
Who really cares about the companies loosing money? you know the consoles aren't the only source of income for Sony an Ms..as long as we can play them and as long as they give us good games i really don't care :P
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0rin

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#7 0rin
Member since 2006 • 7179 Posts
If sony and nintendo both go the way of nintendo, and opt for cheaper hardware, with little to no graphic improvements, and a stupid waggle-wand for a controller, i will ditch consoles and go PC only in a heartbeat. I'm going to be extra critical here and now, and say I lost almost all respect for nintendo, and will never touch the wii. If they plaugue all of console gaming with their casual disease, I will simply despise nintendo.

I think Sony and MS are doing the right thing, by catering to the group of gamers like me, as well as to the casuals, with games like LBP, Banjo, and a ton of PSN/XBLA titles.

I honestly wouldn't care if nintendo just fell off the map. I have absolutely no interest in their wii garbage. Sales shmales, way to alienate your core base nintendo. Way to kill off a brand.
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Popadophalis

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#8 Popadophalis
Member since 2007 • 1587 Posts

Who really cares about the companies loosing money? you know the consoles aren't the only source of income for Sony an Ms..as long as we can play them and as long as they give us good games i really don't care :PAl3x_n90
.

..and if they lose so much money that they pull out of the console war, what then?

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Dahaka-UK

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#9 Dahaka-UK
Member since 2005 • 6915 Posts

What makes you think Sony an Microsoft are going to make the same mistakes they did this gen the next generation. They will learn from their mistakes more than anything. Microsoft should know by now not to rush their console release unless they want to be paying another few billion on repairs. And Sony should know that all this multimedia crap that was in the PS3 is potentially useless for gamers and they should get rid of most of it in the PS4 to jack the price down and make it an affordable games console. I mean come on lets face it 50GB blu ray discs has done nothing for the PS3 and whats worse is installations on consoles.

Both consoles need a HELL of a lot more variety in there games I don't want 3 RPGs and a bazillion shooters, thats not variety. I also don't want 1 shooter and a bazillion RPGs. I want a hefty catalog of AAA games ranging from every genre there is. Prefrably exclusives. If I'm going to buy a PS4 and XBOX720. I want them to be different from eachother. Not the same bloody console with same games. Much like the PS3 and the XBOX360 now. Multiplats suck. I'm not asking for too much. If both microsoft and Sony can get there flaws fixed. They can come up with some amazing consoles that should sell good.

Nintendo can keep doing what they do best. Making crappy games for non gamers. Cause who the hell cares for non gamers. Not gamers. And if they sell more in the process then so be it. All the more reason sales don't mean anything.

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Blackbond

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#10 Blackbond
Member since 2005 • 24516 Posts

Let's face it Microsoft and Sony have had an absolute nightmare trying to be profitable this gen.

Popadophalis

Um hasn't it already been confirmed ways back that MS is already profiting on the 360?

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Popadophalis

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#11 Popadophalis
Member since 2007 • 1587 Posts

  1. gimmicky controller + standard controller in the box
  2. wireless headset standard
  3. slight graphical upgrade , blu-ray drives will be faster , lots of ram
  4. huge hardrives , I mean huge
  5. 360 will have the things the ps3 has now as standard - blu-ray , wireless , bluetooth , etc
  6. both will have b/c
  7. only one sku

$399

Nike_Air

That sounds like another incremental upgrade which is exactly what landed them in trouble this gen. Where's the improvement?

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Al3x_n90

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#12 Al3x_n90
Member since 2007 • 2561 Posts

[QUOTE="Al3x_n90"]Who really cares about the companies loosing money? you know the consoles aren't the only source of income for Sony an Ms..as long as we can play them and as long as they give us good games i really don't care :PPopadophalis

.

..and if they lose so much money that they pull out of the console war, what then?

They won't.Sony is loosing money with the ps3 but it will start to be profitable from one point :P Same for M$

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Nike_Air

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#13 Nike_Air
Member since 2006 • 19737 Posts
[QUOTE="Nike_Air"]

  1. gimmicky controller + standard controller in the box
  2. wireless headset standard
  3. slight graphical upgrade , blu-ray drives will be faster , lots of ram
  4. huge hardrives , I mean huge
  5. 360 will have the things the ps3 has now as standard - blu-ray , wireless , bluetooth , etc
  6. both will have b/c
  7. only one sku

$399

Popadophalis

That sounds like another incremental upgrade which is exactly what landed them in trouble this gen. Where's the improvement?

gimmick controller

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whocares4peace

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#14 whocares4peace
Member since 2005 • 4971 Posts
[QUOTE="Popadophalis"]

Let's face it Microsoft and Sony have had an absolute nightmare trying to be profitable this gen.

Blackbond

Um hasn't it already been confirmed ways back that MS is already profiting on the 360?

They have had 3 profitable quarters, but overall, they arent profitable yet.
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RainWest

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#15 RainWest
Member since 2005 • 564 Posts

What they could do is actually push the current consoles to their limit.

There were only a handful of games that really pushed the ps2. So with the technology currently being used in today's consoles, they could easily squeeze out 8 or 9 more years of games

Get one console fine tuned, and get your software sales up. Stop making 90 SKUs

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Popadophalis

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#16 Popadophalis
Member since 2007 • 1587 Posts
[QUOTE="Popadophalis"]

Let's face it Microsoft and Sony have had an absolute nightmare trying to be profitable this gen.

Blackbond

Um hasn't it already been confirmed ways back that MS is already profiting on the 360?

They finally started posting profitable quarters after Halo 3 launched (what a surprise) but that doesn't ensure they'll regain all the money they've allready lost.

Also I gotta know, what's going on in your signature?

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stereointegrity

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#17 stereointegrity
Member since 2007 • 12151 Posts
so what should they do?.....sell out like nintendo did?
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Popadophalis

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#18 Popadophalis
Member since 2007 • 1587 Posts

gimmick controller

Nike_Air

Including a half-assed motion sensing controller won't do any good if it isn't the standard and even if it was, a new controller won't magically change a companies fortunes.

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hakanakumono

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#19 hakanakumono
Member since 2008 • 27455 Posts
Has sony really lost that much with the PS3? Or is that just BS speculation?
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Ilived

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#20 Ilived
Member since 2007 • 5516 Posts
Yeah yeah whatever. I mean, lets forget the fact that some of the best games of all time have been produced on both consoles. Lets hope they totally take it the Nintendo way next time and run out all the hardcore gamers for good.
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Popadophalis

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#21 Popadophalis
Member since 2007 • 1587 Posts

Has sony really lost that much with the PS3? Or is that just BS speculation?hakanakumono

You have spent three billion dollars on the Playstation 3, disregarding research and development. Can you ever get your money back?

Stringer: Not for as long as I live (laughs). It will certainly take some time. The traditional business model for the Playstation envisaged us making a loss with the hardware in the early years until the production costs had decreased to a point that enabled us to break even. We are currently at the stage in which we need to get a grip on the production costs.

http://www.welt.de/english-news/article2358382/Future-of-Sony-Ericsson-uncertain.html

Keep in mind research and development on the cell and all the other components in the PS3 would have cost Sony a hell of alot.

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radicalplace

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#22 radicalplace
Member since 2005 • 2010 Posts
Whats with all the nintendo hate? Nintendo haven't sold out or alienated core gamers. Sony and Microsoft are going to have to go for something that moves toward something more innovative with its controller and put in cheaper but still quality hardware, appeal more to the casual gamer. Nintendo's future is pretty obvious, they need a more innovative controller that is a bit less gimmicky, upgrade their hardware ALOT and design a better online system.
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loganh92

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#23 loganh92
Member since 2007 • 443 Posts

[QUOTE="hakanakumono"]Has sony really lost that much with the PS3? Or is that just BS speculation?Popadophalis

You have spent three billion dollars on the Playstation 3, disregarding research and development. Can you ever get your money back?

Stringer: Not for as long as I live (laughs). It will certainly take some time. The traditional business model for the Playstation envisaged us making a loss with the hardware in the early years until the production costs had decreased to a point that enabled us to break even. We are currently at the stage in which we need to get a grip on the production costs.

Keep in mind research and development on the cell and all the other components in the PS3 would have cost Sony a hell of alot.

This is purely on hardware, not software and accessories.

I don't know many systems that earn their money on the consoles themselves.

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ff7isnumbaone

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#24 ff7isnumbaone
Member since 2005 • 5352 Posts
in a fictional world were all 3 console were the same price wii would be the weakest link.
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rrjim1

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#25 rrjim1
Member since 2005 • 1983 Posts

MS will be smiling come tax time, claiming the huge loss on repairs will probably make them money!

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V_Isle

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#26 V_Isle
Member since 2006 • 1785 Posts
No, no. If they change, we're screwed. I sold my Wii a year ago. I want no part of that casual craze. I want MS and Sony to continue pushing cutting-edge technology and hardcore games. If they pull a Wii next-gen, then I'm sure many people will just quit console gaming and move to PC, the last safe haven for hardcore gaming.




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foxhound_fox

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#27 foxhound_fox
Member since 2005 • 98532 Posts
Meh, I prefer traditional games that are offered by the 360 and PS3 to "new" ones offered by the Wii. As long as they continue to offer what I like, they will continue to receive payment for it.
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V_Isle

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#28 V_Isle
Member since 2006 • 1785 Posts
Whats with all the nintendo hate? Nintendo haven't sold out or alienated core gamers.radicalplace

Heh, I take it you missed Nintendo's E3 conference this year. :lol:
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radicalplace

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#29 radicalplace
Member since 2005 • 2010 Posts

[QUOTE="radicalplace"]Whats with all the nintendo hate? Nintendo haven't sold out or alienated core gamers.V_Isle

Heh, I take it you missed Nintendo's E3 conference this year. :lol:

I saw it. Your point?

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plod2

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#30 plod2
Member since 2007 • 289 Posts
Who will buy a console similar to the wii next gen? I bet most people who have actually played a Wii hate it, I think Nintendo are screwed if they don't make a real console next-gen.
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radicalplace

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#31 radicalplace
Member since 2005 • 2010 Posts

Who will buy a console similar to the wii next gen? I bet most people who have actually played a Wii hate it, I think Nintendo are screwed if they don't make a real console next-gen.plod2

That doesn't make any sense. If it was hated it wouldn't be popular. Wii is a real console, what the hell are you talking about.

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jasonheyman

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#32 jasonheyman
Member since 2006 • 1683 Posts

My humble opinion is that the goal for the PS3's life cycle is 10 years. Especially because of the blu ray! That being said since the two systems, (Xbox 360 and PS3) are only a few digits off hardware wise I see the 360 here for sometime yet!

With how expensive the systems are they are going to do exactly what happened at E3! Pretty much the 360 is getting revamped with this new software update! I see the companies doing this maybe once more before new hardware comes out! It's too expensive! And if the hardware is amped up for better graphics and smoother gameplay you can bet your achievments that it will be EXPENSIVE!! This software update should be an eye opener to us all!! And I think it's great that it's happening!! These systems have a ways to go yet with being pushed to their limits and with a 400 dollar average they should keep them around awhile!!;)

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Zoso-8

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#33 Zoso-8
Member since 2008 • 2047 Posts

Let's face it Microsoft and Sony have had an absolute nightmare trying to be profitable this gen and it's looking to be same sotry next-gen.

Let's start with Microsoft, they've been forced to spend over 1 billion dollars on hardware issues and have no doubt lost another couple billion on the 360 project as they did with the original xbox.

Sony has had an even rougher time financially this gen. Howard Stringer has recently gone on record saying that losses on the PS3 has equalled their total profits on the entire PS2 generation and that they will likely never fully recover their initial investment on the the PS3.

Investors won't stand for a company throwing money away and it's awfully hard not to look at the Wii's amazing success so with that in mind what do you expect Sony and Microsoft's will do next-generation to become profitable?

Popadophalis

Link???

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fabz_95

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#34 fabz_95
Member since 2006 • 15425 Posts

They will push their secondary revenue streams hard (IE digital dowbnloads) and MS will make damn sure to build a reliable system. They certainly wont go for a weak cheap system, it only worked for the Wii because of motion controlls which gave it the perception of advancement despite the sub par hardware. Next generation motion contorlls will be old news and wont be good enough a hook. I expect Nintendos system to compete graphically.TOAO_Cyrus1

I agree

Motion controls will be old news next gen, but I expect there next console to have motion controls (with motion plus built in) and to have to compete graphically with Sony and Microsoft

PS, I think motion sensing is a must next gen after getting a taste of it this gen and for the next console being able to play wii games

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Blackbond

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#35 Blackbond
Member since 2005 • 24516 Posts

in a fictional world were all 3 console were the same price wii would be the weakest link.ff7isnumbaone

And then you realized that even with the 360 being cheaper in Europe then the Wii its still being outsold there by the boat load.

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specialed

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#36 specialed
Member since 2003 • 3669 Posts
[QUOTE="Nike_Air"]

  1. gimmicky controller + standard controller in the box
  2. wireless headset standard
  3. slight graphical upgrade , blu-ray drives will be faster , lots of ram
  4. huge hardrives , I mean huge
  5. 360 will have the things the ps3 has now as standard - blu-ray , wireless , bluetooth , etc
  6. both will have b/c
  7. only one sku

$399

Popadophalis

That sounds like another incremental upgrade which is exactly what landed them in trouble this gen. Where's the improvement?

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Zenkuso

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#37 Zenkuso
Member since 2006 • 4090 Posts

Nintendo Relies on Gaming as its Primary Source of Major Income.

Sony and Microsoft both have multiple sources of major income.

They aren't screwed by any means cause there companies don't function like nintendos.

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sandeep410

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#38 sandeep410
Member since 2004 • 1180 Posts
Stop making consoles and release everything on pc
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SolidTy

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#39 SolidTy
Member since 2005 • 49991 Posts

Sony has had an even rougher time financially this gen. Howard Stringer has recently gone on record saying that losses on the PS3 has equalled their total profits on the entire PS2 generation and that they will likely never fully recover their initial investment on the the PS3.

Popadophalis

TC, You missed an updated article.

Here in SW That was proven to be a FALSE quote.

It was a very far fetched idea when you think honestly about it.He meant like that Fiscal year or something.

Did you know that M$ lost over 5 BILLION DOLLARS on just the original XBOX alone?

I do see the industry shifting though.

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SolidTy

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#40 SolidTy
Member since 2005 • 49991 Posts
[QUOTE="Popadophalis"]

Sony has had an even rougher time financially this gen. Howard Stringer has recently gone on record saying that losses on the PS3 has equalled their total profits on the entire PS2 generation and that they will likely never fully recover their initial investment on the the PS3.

Zoso-8

Link???

This was just A MISQUOTE that he hung onto for too long.

It was even corrected here at SW awhile back (A year ago?)

I don't remember the actual link, but It was fixed like a day later.

The TC must have missed updated article.

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SolidTy

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#41 SolidTy
Member since 2005 • 49991 Posts

Has sony really lost that much with the PS3? Or is that just BS speculation?hakanakumono

No, it was a misquote that is tainting all of SW, apparently.

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SolidTy

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#42 SolidTy
Member since 2005 • 49991 Posts

TC, You make an excellent point, that honestly, will affect the gaming industry next generation.

The degree of changes though, are hard to predict.

I don't want that to happen, but it will.

Also, Here is a couple of corrections.

[QUOTE="Popadophalis"]

Sony has had an even rougher time financially this gen. Howard Stringer has recently gone on record saying that losses on the PS3 has equalled their total profits on the entire PS2 generation and that they will likely never fully recover their initial investment on the the PS3.

Zoso-8

Link???

Yeah, I was just telling him about that. IT's A MISQUOTE that he hung onto for too long. It was fixed like a day later, but he must have missed that article.(We are talking like a year ago.)

Sony has had an even rougher time financially this gen. Howard Stringer has recently gone on record saying that losses on the PS3 has equalled their total profits on the entire PS2 generation and that they will likely never fully recover their initial investment on the the PS3.

Popadophalis

That was proven to be a FALSE quote. If you think about it, it was a bogus statement. He meant for the fiscal year.

Just so you know, Microsoft lost over 5 BILLION DOLLARS on just the original XBOX alone, before 360 launched.

As far as your thread goes though, yeah, I do see them taking a step towards the Wii direction, at least somewhat.

This is getting out of hand. Just from your OP.

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rgame1

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#43 rgame1
Member since 2008 • 2526 Posts
i just till find it funny how PS3 and 360 got beaten by a console called Wii and with only 2 games worth having...Red steel and zelda.
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SolidTy

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#44 SolidTy
Member since 2005 • 49991 Posts

i just till find it funny how PS3 and 360 got beaten by a console called Wii and with only 2 games worth having...Red steel and zelda.rgame1

No, Red Steel was terrible...I should say mediocre.

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Great_Ragnarok

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#45 Great_Ragnarok
Member since 2007 • 3069 Posts
sources please! I call bs on SOny losing all their PS2 profit. also xbox live alone had made 1billion$$!!! look up their E3 presentation!
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Popadophalis

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#46 Popadophalis
Member since 2007 • 1587 Posts
[QUOTE="Zoso-8"][QUOTE="Popadophalis"]

Sony has had an even rougher time financially this gen. Howard Stringer has recently gone on record saying that losses on the PS3 has equalled their total profits on the entire PS2 generation and that they will likely never fully recover their initial investment on the the PS3.

SolidTy

Link???

This was just A MISQUOTE that he hung onto for too long.

It was even corrected here at SW awhile back (A year ago?)

I don't remember the actual link, but It was fixed like a day later.

The TC must have missed updated article.

Here's your information

FY ------Sony -----------------Nintendo -----------------Microsoft

(1998.) 974,000,000---------629,000,000
(1999.) 1,130,000,000-------645,000,000
(2000.) 730,000,000---------421,000,000
(2001.) -409,000,000--------726,000,000
(2002.) 623,000,000---------800,000,000----------- (-750,000,000)
(2003.) 939,000,000---------560,000,000------------(-1,191,000,000)
(2004.) 650,000,000---------316,000,000------------(-1,215,000,000)
(2005.) 404,000,000---------777,000,000------------(-485,000,000)
(2006.) 75,000,00------------894,000,000------------(-1,262,000,000)
(2007.) -1,969,000,000------1,489,000,000----------(-1,892,000,000)
(2008.) -965,000,000--------2,480,000,000------------532,000,000

Totals (2,182,000,000)------(9,737,000,000)---------(-6,263,000,000)

Sorry I can't find the original source where I got this from but I remember an analyst compiling all the financial reports from all the companies and this what was the information gathered. Fascinating stuff when you see just how much Microsoft and Sony have lost over the years.

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mistervengeance

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#47 mistervengeance
Member since 2006 • 6769 Posts

wait. hold on one second.

microsoft has been "forced" to spend over 1 billion on hardware issues?

may i remind you whose fault those KNOWN hardware issues are?

honestly if all three consoles take the route of the wii next gen i will stick to the good old pc. might as well upgrade, i haven't in a while.

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ps3wizard45

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#48 ps3wizard45
Member since 2007 • 12907 Posts
i hope they change , i like the concept of the wiimote (wich they will proably rip off from nintendo ) i just dont like the wiis grafix and online lack of games ,etc if sony and MS can pull of a better wii mote with good online and grafix , etc they will do better than wii IMO
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Krigon

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#49 Krigon
Member since 2005 • 5591 Posts
[QUOTE="Nike_Air"]

  1. gimmicky controller + standard controller in the box
  2. wireless headset standard
  3. slight graphical upgrade , blu-ray drives will be faster , lots of ram
  4. huge hardrives , I mean huge
  5. 360 will have the things the ps3 has now as standard - blu-ray , wireless , bluetooth , etc
  6. both will have b/c
  7. only one sku

$399

Popadophalis

That sounds like another incremental upgrade which is exactly what landed them in trouble this gen. Where's the improvement?

Where are the major improvements on the Wii ? Yet it sales like hot cake.

First you complain about Sony/Microsoft loosing money (mostly because they tried to make major improvements on their consoles) and now you want them to make major improvements again?

If you want them to start making money as soon as they start selling the next gen console, then they need to go the Nintendo way and sell an underpowered console with a gimmick.

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OhSnapitz

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#50 OhSnapitz
Member since 2002 • 19282 Posts
I've said this before and I'll say it again.. Sony and M$ need to improve on the hardware by adding more memory (1-2 gigs instead of 512mb) and HDD space(100gig's should be standard and dirt cheap in 2-3 years). The processing power is there.. (maybe M$ could go quad core..). If they take the Nintendo route and "casualize" their software and features I'm becoming a PC gamer plain and simple.