live4speed
SCE makes more profit than Nintendo, if you have a source that says otherwise provide it by all means, but although I agree that the consoles are sold at a loss, the profit Sony makes in the number of games it sells far outweighs the difference.
I think he only means in reference to hardware, because only recently did nintendo begin selling the GC at a loss, even when it launched they were actually making a profit on hardware.
This generation is actually going to be HEAVILY reliant on games for both Sony and MS. If their consoles end up being a large hit, and their games aren't successful, it could mean one of them could be out of the race, as it's projected each company take nearly $100 loss PER CONSOLE.
Keep in mind these numbers are larger than the $50 losses seen last generation.
Meaning if PS3 follows the success of the PS2 during launch, they could suffer nearly a 1.2billion dollar loss, and the figures are quite similar for microsoft.
Speculation currently is that PS3 will cost nearly 495 dollars per unit to manufacture, and will retail at 399.99, while the Xbox360 will cost nearly 400 to manufacture, but will retail at 299.99, so while one console will indeed be cheaper to manufacture, they will still take similar losses, and rely heavily on software.
This could verywell be the generation we see someone fail.
But rest assured, it won't be nintendo if they do indeed stay out of the technology race, which could put them right back into the running game very easily.