Nintendo of America president Reggie Fils-Aime says competitors Sony and Microsoft have chosen to follow unwise and costly next-gen strategies, and will do well to stay afloat in the console war.
Speaking at a BMO Capital Markets sponsored conference, Fils-Aime compared Nintendo’s approach to next-gen with that of its rivals, who decided to invest heavily in cutting edge technology when designing their latest consoles, the PS3 and Xbox 360, reports CNN.
"The challenge that our competitors have is significant,” he said. “They’ve gone down the path with building expensive machines that they lose money on. They’ve gone down the path with games that are hard to develop."
"They’ve put themselves in a box. I don’t know how they’re going to get out of it."
Nintendo recently announced that half year profits and sales had doubled on strong sales of its Wii and DS consoles, leading the firm to raise its full year outlook to a record high. Sales of Nintendo’s Wii, which surpassed 7.33 million units during the first half of the financial year, and its handheld DS, which sold around 13.4 million units, have helped the company’s market value to more than double this year.
In comparison, Sony recently posted a gaming unit operating loss of 96.7 billion yen ($847.6 million) for the quarter ended in September, which it attributed primarily “to the loss arising from strategic pricing of PS3 at points lower than its production cost and the increase in PS3-related inventory write-downs recorded.”
Microsoft, on the other hand, reported a quarterly profit in the Xbox’s Entertainment and Devices Division, as its videogame business aims for its first full year of profitability.