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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