DigiQ8
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OCybrManO said:He might be talking about the difference in total assets of Microsoft, Sony, and Nintendo. Meaning, if they decided to pull out all the stops in terms of money used in R&D and production of hardware Microsoft would have a much larger pool of money at their disposal... meaning Sony and Nintendo wouldn't have a chance to compete. Bill Gates alone is worth several times as much as Nintendo. Obviously, this isn't a feasible plan for Microsoft because it would totally **** their profit margins per console sold (unless they sell for thousands of dollars per unit) and lose them tons of money... even if no one buys the other consoles. In the end, it's all about maximizing profits.
On the Forbes 2000 global rankings... Microsoft is #47, Sony is #123, and Nintendo is #708. The difference between them is that Microsoft and Sony are diversified... while Nintendo pretty much just does gaming hardware (with help from IBM, ATI, and NEC) and software. All that tells us is that Microsoft and Sony have more of a cushion for mistakes in the gaming sector. They still won't push tons of money into their gaming hardware for the aforementioned reasons. Their size just gives them more breathing room.CommunistPenguin said:Actually, Sony isn't at a disadvantage at all. They are the japanese equivilant of Microsoft. It's Nintendo who is going to have a really tough time. Especially since they are now dumping useless gimmicks into their game systems.