New gaming PCs, next-gen Xbox and PS4 all doomed?

CPC writes: "On the console side of things, Rahul reasons, it's not the customer but the companies - well, Microsoft and Sony - that can't afford to create any more machines along the lines of the Xbox 360 and the PS3. Their business model is to sell the console itself at a loss, and make a profit on the add-ons, games and licensing agreements.

I certainly think he's right about the PS3; all the sales data points to it being convincingly outsold by the 360 (with the pair of them being crushed by the Wii). Yet despite bleak numbers, Sony can't afford to cut the price, because even at $400/£299, Sony still doesn't make money on each unit sold. The high price then contributes to the slow sales, and the slow sales mean that the PS3 platform isn't generating enough revenue to subsidise a price cut, or to fund a next-gen console. Microsoft's position doesn't look quite as bleak - the cheapest Xbox 360 can be had for £130, and sales are brisk - but then it did have to write off over $1 billion thanks to the high failure rate of the hardware."

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Says you3574d ago (Edited 3574d ago )

This guy doesn't even know what hes talking about convincing outsold by the XBox 360 barely and the PS3 selling at a slow paste that's not what the sells tell me when the XBox 360 and PS3 were neck in neck in 2008 and the ever convincing we're ahead by 8 million by Microsoft when its really 7 million ahead but then again that article about Sony and Microsoft in Worldwide sales was posted along time ago so the PS3 could be 22 million.

ThanatosDMC3574d ago (Edited 3574d ago )

Apparently, we wont have videogames anymore in the next 3-5 years! TEH DOOMED!!!

solidsnakus3574d ago

LOL your such a fanboy. 400, million yen is nothing. do you know how much that is in dollars? here let me show u lol

400,000,000.00 JPY = 4,447,656.64 USD

4.5 mil dollars. yea thats abolutely nothing when you realize gta4 made like 500 mil in its first week or something similar.

SaiyanFury3574d ago

Yeah, uh huh the world's doomed, we're all going to die, spend your rainy day money, consoles are screwed, PC's are destined to explode, blah blah blah.

majorsuave3574d ago

There is always a slow down in high end PCs when the gap between PC power and console power becomes too wide.

Today a 500$ PC can, just like consoles, play all modern games at 720p. a 1000$ PC will play them at least at 1080p and beyond.

So, shovelling 6000$ on a monster machine when the games are actually developed for 4-5 year old hardware consoles does not make sense to most.
Gaming experience will be just as good and for 6000$ one can afford a very nice gaming PC, a X360, a PS3 and a 50" HDTV with a dedicated HDMI input for the all machines.

RememberThe3573574d ago (Edited 3574d ago )

But of course your going to miss the point entirely.

N4g_null3573d ago

So 4.5 million is enough to fund R&D? Really how much did it cost to get the R&D for the cell done? AMD a real chip maker shows that you have to have real capital to stay in the top of just CPU tech. Intel shows what money can do for your R&D.

I mean you don't see the writing on the wall? the 10 year plan is one to fix the current mistake that Krazy Ken made and was let go for. Yes it is going to take them 10 years to fix the problem it seems. They are hoping the prices on chip manufacturing fall. Hell in 10 years we should have PS3s in our gameboys/DSis.

Hey SONY will make it they will find away and I fully expect by 10 years they will be on top or close again. This also means they may skip the next gen hey but we will still have the PS3 right!

+ Show (4) more repliesLast reply 3573d ago
rucky3574d ago (Edited 3574d ago )

WTF Microsoft and Sony aren't two-bit companies. It seems like they're just keen on reviving the PC gaming market judging by the article.

lokiroo4203574d ago

SPot on. HAving a loss on consoles has been around since the nes, how long ago, but now it will all change, please. If anything I would say gaming journalism is inching closer to the cliff with all the assanign articles that have sprouted the last gen or so.

N4g_null3573d ago

The nes did not cost over $400 to make. Another thing is even though we have a recession intel will be bring out it's new line of chips that sound a lot like the cell, but the cell done right. Their goal is to do what sony and ibm could not do. Make a cpu that does not need a GPU. PCs are insanely powerful right now. If you ever get to see a core i7 in action you will see what I'm talking about. It doesn't cost $3000 dollar either. A new system will be around $1500 and even that price is falling. Seriously I upgrade because I need to game wise every 4 to 5 years. Yet work wise I do it way more often.

The PC market will never be revived because even the console devs can save it... HD consoles are proof.

eagle213574d ago (Edited 3574d ago )

How " re-TaRdeD" can he be? lol

BrunoM3574d ago

dont you guys know we are all doooommmmm the world is ending in 2012 so ya is ok ...

stupid news keep poping up on these site n4g is turning WAY TO STUPID

mirroredderorrim3574d ago

I ask people... what do you look for in game journalism, now at days?

An honest question, sparked by this article.

Szarky3574d ago

Ask that to the morons approving these flame bait articles.

BrunoM3574d ago

got to agree .... ..

its geting more dumb by the day!!

is it going to stop.. stupid news poping up here ..

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