70° Editoral: Back in Black (Nintendo, Microsoft, Sony All Profitable)

Rob Fahey of writes: In the past weeks, we've seen confirmation that the great wheel of commerce is still turning for the games business. This, after all, is the month when the next-gen (which is slowly but surely establishing itself as the current-gen) started writing its name in black ink, with all three of the major platform holders - Sony, Microsoft and Nintendo - reporting that their games businesses are now profitable.

For Nintendo, it's business as usual. The company, which has been in the toy and game business for over a century, has only ever once reported a quarterly loss. Admittedly, the scale of its present success is rather new and exciting for the Kyoto-based firm; on the back of a major increase in its sales projections for the year, analysts expect Nintendo's stock to continue to grow, further cementing its position as newfound darling of the Nikkei stock exchange.

For Sony, it's a partial exoneration of the firm's strategy. Despite the negative press which has surrounded the PS3 in the past year, and the deep losses incurred by Sony Computer Entertainment in launching the new console, the firm's games business has never really been in that much trouble. Cash has continued to roll in thanks to the PlayStation 2's ongoing success, while the PSP, despite playing second fiddle to Nintendo's DS to a large extent, has also enjoyed a healthy measure of success and profitability in the past year.

It's for Microsoft, however, that the step into the black is most significant. The Home and Entertainment Division, whose primary occupant is its videogame efforts, has been leaking red ink all over Microsoft's financial results since the inception of the Xbox. A small respite occurred around the launch of Halo 2, when massive sales of the game pushed the firm into profit - and this was promptly repeated in the September quarter of last year, thanks to the launch of Halo 3.

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Cyrus3653789d ago

Interesting look at each companies reported (Black/Green) Ink, and what they need to do to continue their success.

The Killer3789d ago

if thats the case then they r i deep trouble!! but i dont think thats the case!!

i wonder if sony manages to make up of the losses of ps3 from ps2 and psp profits!!

Cyrus3653789d ago

That's the only time to date, but them making a profit (2 consective Quarters), and after halo 3 release, is shows it's not just Halo anymore. It shall be interesting to see if they make a profit (Jan - march).

wiizy3789d ago

i still agree with patcher that nintendo should drop the wii price to 199 with wii sports included.. not that any competition will catch up to nintendo but just to put themselves in a position to not even have to worry.. they've already done their part by making the wii an actual system for entertainment that everyone can enjoy and now the games.

Cyrus3653789d ago

There is no need for Nintendo to do so, The demand is still high. People still can't find the console, and there production hasn't met the demand. When demand goes down, and their ample Wii's in stores, then you might see a price drop, till then, why cut 50 dollars from their bottom line.

Plus they are in no danger from sony or microsoft catching them.

Clinton5143789d ago

Seeing how fast their console sold and how cheap it was to manufacture.

But Sony, against all odds and negativity they went black extremely fast.

beoulve3789d ago

as long as its profitable, everybody happy.

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