Deep Pockets
The console business is one where you need very deep pockets:
Sony's gaming business is moving towards profitability this year -- something that's eluded the company each year since the PlayStation 3 was launched in 2006.
Just think about that - four years of pretty harsh losses before things turn around - and then the console maker has to deal with two realities:
- The need to milk profits out of the now (no longer bleeding) system
- Getting ready to launch a next generation system
That sure explains why the improvements to the PS3, XBox, and Wii have all been incremental. Even though Nintendo was profitable out of the gate, they now have Apple on their turf, cutting into what they probably thought of as milk money (the entire DS line).
