XBox fans hate this type of stuff, but it's simply true. Here are a few facts: Microsoft's XBox division is still IN THE RED. Only deep pockets are holding it up.
Microsoft has a one year lead on both other consoles and yet still has barely moved 10 million units. The PS2 outsells the 360 at least 2 to 1. Sales of the Wii have been devastating to the 360.
Before the Elite came out, 360 sales had practically grinded to a halt. Both Sony and Nintendo continue to make money off of there vast gaming assets while MS only relies on its current gen hardware. Sony makes a ton of money off of PS2 sales and its 120+ million installed base.
Nintendo is always in the black on R D costs because of the modest tech in its systems and each console it sells makes a profit RIGHT OUT OF THE DOOR. Needless to say, the Wii and DS are kickin the crap out of everything right now. Every time MS releases a new console, sales of its previous consoles SHUT DOWN.
360 sales destroyed the original Xbox and Elite sales are directly effecting Premium sales. MS has sold the fewest consoles and games BY FAR of any of the major console makers. It's not even close.
The 360 is doing well but hardly so well as to bridge the CHASM of total game and console sales between it and Sony and Nintendo. The PS3 is last among next-gen consoles but WELL AHEAD in sales of any HD video player. Once again, it's not even close.
With the PS2 still selling well (and the PSP holding its own), Sony can afford for economies of scale to kick in for the PS3 to compete with the other consoles...
in the meantime, it is helping Blu-ray crush HD DVD. How much money do you think Sony stands to make from Blu-ray licensing? Quick answer: A LOT.
Once HD DVD is stomped, then economies of scale kick in (as well as Sony's massive game development holdings) and the PS3 starts to effectively compete with the other consoles. It's a win-win for Sony as long as it weathers the storm. Which brings me to my last point: The PS3 is the BEST value among all the game consoles.
Sounds crazy, right? So crazy that if MS had included a HD DVD player and HDMI on its first release of the 360, it would have been MORE expensive than the PS3. So crazy that MS stilll CAN'T AFFORD to bundle a HD video player with the 360 because it would make it MORE EXPENSIVE than the PS3.
As time goes on, economies of scale favor the PS3. Don't believe me? Then ask yourself why MS released the Elite.
I'll tell you: 1) to reenergize sales that had stagnated after the release of the Wii and 2) to try to fend off the PS3 by offering more disk space and HDMI. I won't even mention the Wii because it isn't even in the PS3's class. If this upsets some folks, then what can I say?
The facts speak for themselves. If anyone is "spinning" anything, it's MS and its fanboys. The 360 is a good machine, great in some ways, but it has peaked.
As Sony continues to improve the firmware of the PS3, it continues to improve its value against the 360. The market is shifting in Sony's direction..
. The 360 was made for everyone still with analog TVs. As prices drop for big screen LCDs and plasmas, The PS3 is already positioned to be the console of choice.
Sony didn't help itself by putting out the PS3 only half done but, let's face it, if Sony had released the PS3 with the current firmware, there would be no question that it was the superior console. It would have buried the 360. MS can thank all of the bad press the PS3 received because that's really the only reason the 360 is still a factor (and XBox Live).
XBox fans hate this type of stuff, but it's simply true.
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