When you are a multi billion dollar company and one day you decide that you want to make and sell a videogame console, you can pretty much do it. You can do almost anything you want when you are a multi billion dollar company. This is very true for XBOX and Playstation. Both Microsoft AND Sony have been selling their newest videogame systems at a loss. Playstation’s $600 price tag apparently does not include any profit for Sony, and the XBOX brand has never turned a profit according to the Wall Street Journal.

The funny thing is that Nintendo was considered to be the underdog throughout this current generation of gaming. Instead they are the only ones to have made any money with their “Wii” console. The funny thing is that both Microsoft and Sony can both afford to run their videogame brands at complete losses year after year due to the overwhelming success of their products in other markets. I don’t think we will see XBOX of Playstation disappearing from the map anytime soon. If anything they are both likely on the verge of becoming very profitable. You’d think they would be making money already but I guess being innovative is more profitable than having the best graphics. That’s why the Nintendo Wii took and is continuing to take the market by storm.