- Joined
- Jul 20, 2006
http://www.fool.com/investing/gener...ers-125-billion-loss-playstation-busines.aspx
While not really big news for the CONSOLE part of this story (the Playstation business only lost $78 million vs an overall 1.25 BILLION dollar loss for the company as a while) it is a cautionary tale that involves the fates of both Sony and Microsoft.
The moral of that story is that, when you've been ahead for so long you automatically fail to innovate, getting back on your feet can be the market equivalent of getting back on dry land as you're sinking in quicksand.
Sony's managed to best Microsoft in console gaming... and pretty much nobody else in anything. Sure they sold 7 million PS4s... but samsung sold about FORTY MILLION Galaxy S4s for about the same price and their product cost a lot less to produce (and they come out with a new one every year and sell around 40 million each time.)
This is *context*. A lot of people (especially when you're in the eye of the storm) lose perspective when you talk about who's selling more consoles. That's like talking about how great the in-flight movie was just before your plane crashes into the side of a mountain.
While not really big news for the CONSOLE part of this story (the Playstation business only lost $78 million vs an overall 1.25 BILLION dollar loss for the company as a while) it is a cautionary tale that involves the fates of both Sony and Microsoft.
The moral of that story is that, when you've been ahead for so long you automatically fail to innovate, getting back on your feet can be the market equivalent of getting back on dry land as you're sinking in quicksand.
Sony's managed to best Microsoft in console gaming... and pretty much nobody else in anything. Sure they sold 7 million PS4s... but samsung sold about FORTY MILLION Galaxy S4s for about the same price and their product cost a lot less to produce (and they come out with a new one every year and sell around 40 million each time.)
This is *context*. A lot of people (especially when you're in the eye of the storm) lose perspective when you talk about who's selling more consoles. That's like talking about how great the in-flight movie was just before your plane crashes into the side of a mountain.