Console Wars, There Are No Winners

february 17, 2006

1up.com is running a great article about the console wars. They argue, quite successfully that no one is winning the console wars. Not Sony, not Microsoft, and not Nintendo. And that no one is going to lose either. Nintendo is not on their way out as a console maker -- quite the opposite, they are making a healthy profit with each console they sell and they are making a healthy profit in general. Microsoft is not losing in the console market either. Yes, they have lost $1 billion each of the last four years in their consolebusiness, but they more than make up for it with the sale of other goods (OS and office suite anyone?) -- and the profit from other businesses, they can keep up the funding for their money losing console group with the intention of winning marketshare. Sony is the entrenched console maker with Microsoft striking from one side (online play) and Nintendo from the other (niche market that Sony doesn't even touch). Sony will also be fine like the other two console makers.