The Business Of Selling Gaming Consoles
from the tough-to-make-money dept
One of the better articles to come out of Red Herring in a long time. They take a look at the war for the game console market from a business standpoint. Obviously, the players are Microsoft, Sony, and Nintendo. The article covers a number of factors that will play into who “wins” the battle, including developer support, marketing, and costs. All three are selling the consoles at a loss, in the hopes of making it up in game titles. However, the numbers show that’s a more difficult proposition for Microsoft than the others – since the Xbox is the most expensive box to create, but isn’t priced that much higher than the competition. In the end, the predicition is that Sony will keep the highest market share, but Nintendo will have the highest profits. Update: Right after this article came out, Red Herring redesigned their site and didn’t make it backward compatible. The article is now located here.