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I believe actual comparisons of profit between Nintendo and Sony's game division would show that overall, Nintendo makes more. Comparing Nintendo to the entire company, Sony definately rakes in more cash. However, profit for profit Nintendo beats out the games division of Sony.

That's not to invalidate the point that both methods are viable and even wise. However, it is a clarification I felt necessary.

Source: http://nintendoinsider.com/site/EEEZuAypVuTuOJPzyb .php

I know there are others, but as I'm only nitpicking an item largely irrelevant to your point I don't see finding them as necessary.

I can provide a link showing that they definately aren't loosing money on the GC. While you may or may not like to buy Nintendo's consoles, it's abundantly clear which company you'd want to buy stock in.

http://nintendoinsider.com/site/EEEZuAypVuTuOJPzyb .php

Sony has higher revenues, but Nintendo has much better margins. This is what I found after a quick Google - I know I've seen similar figures for just the home console market somewhere.

1. That's an urban legend.

2. Nintendo has NEVER sold below cost. They make a profit on each unit sold.

3. The reason why Microsoft had to sell the XBox at a loss was because they put PC Hardware into a game console. Which made it a lot more expensive than the Nintendo and Sony counterparts.

That is not true. I love Nintendo, and while they rarely sell at a loss, they still do occassionally. However, it's only in the single digits, and not for very long.

http://nintendoinsider.com/site/EEEFylpkElFffmiBlr .php/

Nintendo has never lost money on hardware. It was Sega who first pioneered losing money on a console in the hope to make it up with software sales. Even Sony didn't sell the original PS1 for a loss. It was not until the release of the PS2 that Sony went that route. Microsoft is the only one who's ever sold their hardware at a loss from the get go.

For more info check: http://nintendoinsider.com/site/EEEZuAypVuTuOJPzyb .php

It could simply be that the Wifi wasn't ready by the time the system launched and so they went with what they could do, Pictochat. That would be understandable. I do agree though that a built-in browser would be awesome. The touch screen could be used for the keyboard as well as clicking on links and such. Perhaps the top screen could show a zoomed-out view of the entire page while the bottom screen showed a 100% size view of a certain portion of it, with the ability to drag that portion with the touchscreen (like Google Maps). It could be quite interesting.

As for the reverse engineering that you are talking about, I presume you are talking about Stephen Stair - http://www.akkit.org/dswifi/index.html
I believe that he currently has UDP/IP functioning and is working on getting TCP/IP to fuction correctly. Already people have made some simple applications for what is currently available, such as a program that transmits a file to the compact flash cards of several hardware products used for DS homebrew (Game Boy Advance Movie Player and the Supercard among others). There is also a (rather useless) program that replaces the keyboard when using mIRC, letting you type (but not receive) text into the channel from your DS. I believe there's also a program that allows chat between a PC and the DS. It's all rather interesting, and only time will tell how more advanced these programs will get. Hopefully, once TCP/IP is figured out correctly, a simple web browser can be created.

I also believe that there is a company that is creating an instant messenger cartridge for the DS. More info can be found at http://nintendoinsider.com/site/EEkuFAyluAHuhWnZnZ .php

N64 controller
Gamecube controller
Revolution controller

You missed linking to Nintendo Insider. They have several other commentaries, including my own, in the Gaming Gab section. ( OK, yes, it's a shameless plug. )

The quick version of my reactions is that I was worried at first. However, as I let my mind expand, and thought of other developers, such as Namco and Sega, who already push boundries with current equipemnt, such as the DS, I am beginning to really look forward to what the new system and controller have to offer.

According to this site here Nintendo is the only games company still making a profit at the moment and in Japan the DS is not far off selling more units that the PS2 and the PSP combined! Admittedly the link is a Nintendo fan site quoting Nintendo sales figures, but Nintendo can't lie about these numbers without causing problems with its shareholders.

I just don't understand why everyone thinks Nintendo is at death's door. Thanks to Hiroshi Yamauchi's legendary control of the purse strings nothing gets spent unless they're sure it will turn a profit. IIRC the GameCube has never actually sold at a loss except for one time when they cut the price to boost sales. Nintendo is extremely good at designing hardware that won't cost them a fortune in R&D and sell at a loss in retail.

Just because Nintendo doesn't have Halo, GTA or any of the other blood letting franchises that apparently "mature" people want to play it doesn't mean they aren't still shifting hardware and making a decent profit.

Personally I think the press has it in for Nintendo and the DS at the moment because they spent so much time hyping the PSP which has had like 3(?) good games so far. They can't stand to see themselves exposed for the corporate shills they are who hype anything that has an advertising budget attached to it.

Yeah, and what's up with the charts on this page? Somehow they predict that the PSP will magically quadruple its sales in the next 12 months, while the DS will maintain the exact same sales rate? Did he get this from an analyst, or just make it up on the fly?

There's also a problem with his theory that the PSP will win because of easy ports. In the recent article State of the Handheld Industry, handheld developers seem to believe that Sony won't tolerate console-to-PSP ports. It sounds to me like they're fine with console franchises on the PSP, but they don't want straight ports. If developers have to rebuild the game for the PSP anyway, there's no financial advantage to developing for it.

I have a feeling that "Max Steele" doesn't really know all that much about the handheld war at all, especially if he's crediting Nokia with the win. Any joker with a remote interest in video games and access to Google could have written the same article.

Max out.

Let's clarify that:
Nintendo doesnt NEED to sell it at a loss. Read this and this. Don't discount them for being hosted at 'nintendoinsider.com' either, they are quite factual and honest.

Here's a few clips: In the final corner, Nintendo has it much better. When the system wars began, Nintendo GameCube was actually making money for each system sold, as Nintendo didn't bother with all the extra non-gaming functions of its competitors, like DVD movie playback. The system was still making Nintendo money at $150, and it wasn't until its $99 price tag that it was estimated Nintendo was losing money - but only in the single digits.

The same goes with Nintendo DS; Nintendo has done everything possible to keep manufacturing costs down and to make a profit with each system sold. For instance, the Nintendo DS doesn't play GB and GBC games primarily because this would cost more money. Nikkei Electronics Asia also has a very interesting article on the cost control features of the Nintendo DS.

...

Next, we have Sony; unlike Microsoft, its games division was profitable during the most recent fiscal year. Overall, revenues were at 729.8 billion yen, or approximately $6.76 billion. Its operating profit was 43.2 billion yen, or $400 million. Still, that's over a $6 billion drop going from revenue to operating profit, and a 36.1% drop from the previous fiscal year. One of the prime instigators, says GameSpot? The PlayStation Portable launch.

And finally, we have Nintendo. Even with three systems in its hands, including a recent launch of the Nintendo DS, Nintendo's operating profit increased by 3.6% in the new fiscal year to 111.5 billion yen, or $1.03 billion. Its revenue was also 515.3 billion yen, or $4.77 billion, meaning a $3.74 billion drop from revenue to operating profit, compared to Sony's $6.36 billion drop. Quite simply, Nintendo's conservative business principles have allowed the company to turn respectable operating profits. No drop because of the DS launch or even less GCN sales here.

It's not that Nintendo can't afford to do anything, it's that they know how to make/spend money effeiciently. Through the fiscal year quoted in those articles, Nintendo (who makes JUST video games and consoles) actually made more profit than Sony AS A COMPANY (TV's, computers, other major electronics, the ps2 and the psp). I doubt that's something new for Nintendo. While they are no Microsoft, they can definately afford to do quite a bit.

Let's clarify that:
Nintendo doesnt NEED to sell it at a loss. Read this and this. Don't discount them for being hosted at 'nintendoinsider.com' either, they are quite factual and honest.

Here's a few clips: In the final corner, Nintendo has it much better. When the system wars began, Nintendo GameCube was actually making money for each system sold, as Nintendo didn't bother with all the extra non-gaming functions of its competitors, like DVD movie playback. The system was still making Nintendo money at $150, and it wasn't until its $99 price tag that it was estimated Nintendo was losing money - but only in the single digits.

The same goes with Nintendo DS; Nintendo has done everything possible to keep manufacturing costs down and to make a profit with each system sold. For instance, the Nintendo DS doesn't play GB and GBC games primarily because this would cost more money. Nikkei Electronics Asia also has a very interesting article on the cost control features of the Nintendo DS.

...

Next, we have Sony; unlike Microsoft, its games division was profitable during the most recent fiscal year. Overall, revenues were at 729.8 billion yen, or approximately $6.76 billion. Its operating profit was 43.2 billion yen, or $400 million. Still, that's over a $6 billion drop going from revenue to operating profit, and a 36.1% drop from the previous fiscal year. One of the prime instigators, says GameSpot? The PlayStation Portable launch.

And finally, we have Nintendo. Even with three systems in its hands, including a recent launch of the Nintendo DS, Nintendo's operating profit increased by 3.6% in the new fiscal year to 111.5 billion yen, or $1.03 billion. Its revenue was also 515.3 billion yen, or $4.77 billion, meaning a $3.74 billion drop from revenue to operating profit, compared to Sony's $6.36 billion drop. Quite simply, Nintendo's conservative business principles have allowed the company to turn respectable operating profits. No drop because of the DS launch or even less GCN sales here.

It's not that Nintendo can't afford to do anything, it's that they know how to make/spend money effeiciently. Through the fiscal year quoted in those articles, Nintendo (who makes JUST video games and consoles) actually made more profit than Sony AS A COMPANY (TV's, computers, other major electronics, the ps2 and the psp). I doubt that's something new for Nintendo. While they are no Microsoft, they can definately afford to do quite a bit.