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The Economist Looks At The Console Industry
Fromeo writes "The Economist is running an interesting article discussing the state of the console industry, along with their usual interesting graph, showing the cycle that the industry follows."
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Why buy a $1500 gaming computer, with all the worries about compatible hardware, flaky software, etc. etc., when you can buy a $300 console, plug it into your TV, and be on your way? I have a console because I use linux on my main box, and if I'm working and want to take a break, I don't want to have to save everything, shut down, reboot into Windows, play the game, shut down, reboot into Linux, and re-open my work. There are also all kinds of games (like Gran Turismo) that are unavailable on the PC.
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Nintendo stated many times that they plan to eventually offer the Gamecube for $99 and they will still be turning a profit on the machine itself. However, they didn't plan on cutting prices so soon to fight the competition. As usual the person writing the article just assumes all the consoles are losing money when in fact Sony has refab'd their system for the pricecut so they dont lose money, and Microsoft has done nothing but lose tons of money from the start.