Originally posted by Unicron!
forgive me but I didnt comprehend completely what you are trying to say. 
Can u elaborate?
Sony is a manufacturer of hardware components and silicon chips. They do not depend much on 3rd party vendors to develop chips or hardware for their machines. IMO they will even make the RSX GPU, all NVidia is doing is designing it.
Yeah I know that both will be sold at a loss.I didnt say otherwise.Now about how much games will be sold and profit they will gain with each hardware remains to be seen.
But still the more they are lowering their price the less their profits are.And Sony cares more about the profits they get from the PS3 than MS does because losses have more impact on them.
How do you figure Sony is more worried about profits then MS ???? Sony more then likely will sell considerably more PS3\'s then MS will sell XBox 360\'s, which also means more games and more periphials and more developers which means more liscensing etc... Sony may take a bigger hit but in the end they\'ll probably profit more, and continue there dominant market share. I\'m sure Sony has figured hardware losses into their equation based upon their projected market share. There is always some gamble that they may lose their market share, but IMO its Sony\'s market to lose.
Though if I understood well what you were trying to say before is that MS will have to suffer more cost/less proft-than I thought since hardware manufacturers are expecting gain from MS\'s revenues while Sony wont have to deal with the same problem since they are the ones manufacturing their own hardware (excluding the RSX).Right?
I still think MS will have a better production cost / sales cost ratio, but Sony can and probably does feel secure in higher sales of PS3\'s and software. Sony is using its console gamning muscle to build a machine with what appears to be more advanced technologies. In the end Sony\'s profits from their SCE division will probably be larger then that of MS Xbox division even larger intial losses on hardware.
I am not absolute with my opinion.I am not saying that it will hurt Sony without any gain at all in the long run.What I am saying is that it has more impact on Sony than it does to MS.
MS can take the losses more than Sony can.
Not that you are wrong.You are right.
Sony hopes that in the long run they will be able to make profits.
Its just that they lose flexibility in decision making.Competition is tighter for them this time around.
Its all specualtion on my part just the same, but I just don\'t see Sony being worried about the hardware sales, or profitting. They know they are going to profit. Maybe the the model is tighter based upon increased competition, but Sony knows where it stands in terms of market share and what they will need to do to hit targets.
MS doesn\'t know for sure what its market share is. IMO MS has more to worry about in regards to XBox 360 and being able to generate profits. Even with this uncertainty I feel MS knows it will still profit from the hardware of XBox360 before all is said and done.
the only thing we need to appreciate is how the strong competition has really pushed the console gaming industry forward.
