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Is Console Gaming Dying?

Posted by Soulskill on from the who-needs-consoles-when-you-can-play-on-your-phone-right dept.

mr_sifter writes "PC gamers love to obsess over whether PC gaming is dying, but bit-tech thinks it's time to look at the other side and examine if console gaming is really as secure as publishers would have us believe. All three console manufacturers suffered from the recession — this year, Sony announced its first net loss in 14 years; a stunning ¥989.9bn, which includes record losses of ¥58.5bn in its gaming sector. Microsoft also announced its first loss since it went public in 1986 in the second quarter of this financial year, with a $31 million US loss coming straight from the Entertainment and Devices division, which is responsible for the Xbox 360. Not even Nintendo has escaped the financial plague either, with sales of the Wii dropping by 67 percent in the US, 60 percent in Japan and 47 percent in the rest of the world. In addition to reduced profitability, casual games and the rise of the iPhone further suggest the current model is not invulnerable."

6 of 496 comments (clear)

  1. it's not dying by Shakrai · · Score: 4, Informative

    <non smart ass answer>The console industry is hardly the only one that lost money this year. Hello, recession?</non smart ass answer>

    <smart ass answer>Netcraft hasn't confirmed it yet, so it can't be dying.</smart ass answer>

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  2. No by kryptKnight · · Score: 4, Informative

    The video game industry isn't the only one posting losses recently, so this doesn't seem like a big deal at all. That and these consoles are four years old, it's not surprising to see sales dip.

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  3. MSFT didn't post a loss. by Anonymous Coward · · Score: 5, Informative

    This article is inaccurate. Microsoft didn't post a loss, it posted its first REVENUE DROP since it became public in 1986. They still made a pretty good profit in that quarter.

    1. Re:MSFT didn't post a loss. by ElSupreme · · Score: 4, Informative

      +1 informative. MSFT is still hugely massively, obscenely profitable.

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  4. Re:No by UnknowingFool · · Score: 5, Informative

    Microsoft also announced its first loss since it went public in 1986 in the second quarter of this financial year, with a $31 million US loss coming straight from the Entertainment and Devices division,

    This statement seems to imply that the console losses from the Entertainment Division somehow led to the sudden loss as a company for MS. Except for a few quarters, the division has historically been a money loser for MS. MS has had cumulative losses of $8 billion from the division since the Xbox was started.

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  5. Re:No by Blakey+Rat · · Score: 4, Informative

    Microsoft didn't post a loss this year. They posted their first-ever reduction in revenue... those are two different things, and the author of this article is a retard for not knowing the difference.

    In fact, considering all factors (and Vista), Microsoft has been weathering this recession much better than most companies.

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