The Financial Risks Of Launching A New Games Console


Microsoft and Sony are trying to expand the lifespans of the PS3 and Xbox 360 as long as they possibly can; in fact, it’s been more than 7 years since they were both released. This is due to the huge costs involved in producing a new console, as explained in this infographic. When their new consoles are eventually released (which may be 2013, or possibly even later) rumour has it that they may very well be the last “traditional” home consoles, a decision no doubt driven by the huge costs of producing a console. With an estimated production cost of $1000 for the PS4, yet a retail selling price of more than $600 less that that, it is easy to see why even tech giants like Sony think twice about releasing consoles.

The costs and risks of releasing a console have been made apparent over the history of consoles. The Sega Dreamcast’s slump in sales around 2001 infamously pushed Sega out of the console market for good, despite having been the biggest console maker in the world during the 90s. The history of consoles is littered with failures and huge financial losses like this. It is no wonder Sony and Microsoft are thinking long and hard about their next big console releases.

 

This infographic was produced by Ladbrokes Games.

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One thought on “The Financial Risks Of Launching A New Games Console

  1. Shane

    wow those are interesting figures, I never realized how much off the bad they were behind the mark. I personally have a 360 and love it and how it has advanced, I will honestly be annoyed if a new one comes out next year, cause I will have to have it, would like one more year before having to buy a newer console. IF they made an upgrade to current model that would be cool and maybe save them on operating cost.

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