[Sigia-l] Game Console Business Model (Was: WhatsWrongWithU)

[Ziya Oz]

Timothy Karsjens:

> It is the business model of any console manufacturer to lose money on the
> hardware itself and like a previous poster said, make money on subscriptions
> and software.  Sony and Nintendo do it as well.

Well, yes. The problem is that MSFT has not in the aggregate made much money
in subs/software either, after you discount the $4-$9 billion it's said to
have spent so far on XBox. MSFT has said that they will "soon" be in the
black on XBox biz. I'll believe it when I see independent numbers.

Notice Nintendo has chosen not to incur the huge technology tax with Wii in
numbers comparable to MSFT and Sony.

----
Ziya

"If I had asked my customers what they wanted,
they would have asked for a faster horse." -- Henry Ford