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Next-Gen Shift Costing Sony and Microsoft
The shift to the next generation of consoles is costing their parent corporations dearly. GameDailyBiz has an article up claiming that the gaming division at Sony may lose almost $900 million this year, thanks to rollout costs for the PS3. The 360, already in the marketplace, is looking pretty solid. However, in among increased Microsoft revenue announcements (up 13% for the quarter over last year) and a healthy number of shipped systems by the end of June (almost 5.5 million) is a hard statistic. From the Gamastura article: "As for specifics on the Xbox 360 and Xbox's financials, the company's Home and Entertainment division, which includes the Microsoft Xbox video game console system, PC games, the Home Products Division, and TV platform products for the interactive television industry, lost $388 million for the quarter on $1.06 billion in revenue, a sharp increase from the $175 million loss the previous year." A reminder that these systems may be successful, but they're costing to get out there.
I was in Best Buy a couple of days ago, and it's clear that Microsoft is spending enormous amounts of money to buy shelf space and display areas in major retailers. Custom plexiglass display stands, special silver and white shelving, prime end-of-row positioning, big display TVs, couches, posters on the windows, the works.
I didn't see anyone actually buying anything 360 related, though. Everyone was browsing the PS2, PSP and Nintendo handheld areas.
GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak