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Originally Posted by TheGame
I think "money" matters more than "profits"... the more 'money' you are willing to blow to stop your system from floping directly effects how long you are going to stay on the shelf... more so than profits.
DC made more profits than Xbox, but that doesn't mean Sega had a chance in hell at staying on the shelves longer, does it?
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Actually, Sega didn't make any profit off of DC. But back to the main topic, you're on the wrong track, again. If you're talking which system will be successful, userbase matters. If you're talking in 20 years who might have the best system, userbase matters. We're not talking about which system will dominate the industry, we're talking about which company would completely go out of business. Right now Nintendo is doing very well, PS2 is doing very well, and Xbox is doing very poorly. Nintendo and Sony are no concearn at all. Which only leaves one company at risk for dropping out, and that's Microsoft. Big risk? No, but Nintendo and Sony wouldn't benefit from leaving the industry. If that was the case, Microsoft might as well drop Windows.
Microsoft made $8 billion in profits last year. This year, Microsoft's Home & Entertainment division is on track to lose $1 billion. If you think either Microsoft or its investors are happy with those numbers, you're crazy. Microsoft didn't plan to profit from Xbox, but you can be assured they didn't expect their losses to increase over time, and they have.
Now when you get back to who is most likely to drop out, you have three choices:
1) Sony - Would make less money
2) Nintendo - Would make less money
3) Microsoft - Would increase profits by 10%
I think it's obvious.