Comment Re:Analysts always forget one thing with systems (Score 1) 277
Actually if for Sony or Microsoft there are many reasons to pull money from their warchests.
Mircrosoft:
If MS can keep the XBox unit afloat and build relationships with both hardware and content developers then they win. MS has long been trying to move into the living room and the XBox with the media extensions is their most successful attempt so far. This is building relationships with content developers from all segments. Notice how the XBox Live is becoming Windows Live and XBox games are also Windows games. The XBox even if it loses money during its entire life will still provide a positive feedback for MS that gets them close to their goal of running the living room.
Sony:
Basically its the same argument. They want to sell more hardware and content. On the hardware side they use the PS3 to make Blu-Ray the choice for HD movies and then earn royalties for 10 years. At the same time they hedge their bets and make the system capable of downloading movies if optical media goes away.
Obviously no company wants to support a division that is bleeding money; but, if that division helps out all of the other divisions in the long run then it is worth it.
Mircrosoft:
If MS can keep the XBox unit afloat and build relationships with both hardware and content developers then they win. MS has long been trying to move into the living room and the XBox with the media extensions is their most successful attempt so far. This is building relationships with content developers from all segments. Notice how the XBox Live is becoming Windows Live and XBox games are also Windows games. The XBox even if it loses money during its entire life will still provide a positive feedback for MS that gets them close to their goal of running the living room.
Sony:
Basically its the same argument. They want to sell more hardware and content. On the hardware side they use the PS3 to make Blu-Ray the choice for HD movies and then earn royalties for 10 years. At the same time they hedge their bets and make the system capable of downloading movies if optical media goes away.
Obviously no company wants to support a division that is bleeding money; but, if that division helps out all of the other divisions in the long run then it is worth it.
