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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?


To: Joe NYC who wrote (218363)11/30/2006 11:33:55 PM
From: combjellyRead Replies (1) | Respond to of 275872
 
"So it is not only Sony that will be profit challenged..."

Sony tried to leapfrog the industry on several fronts like they did with the PS2. They went a bit too far and ran into a whole slew of problems. Which delayed them. Microsoft took a much smaller step and was able to come closer to schedule. Nitendo took the most conservative step and had the least problems. Given the difficulty of creating content for the PS3 and its price, the obvious strategy for Microsoft is to cut its price. It would have been better if Halo3 was available for release, but a price cut right before Christmas could make a big difference. Wii should be pretty cheap, so Nitendo can probably drop the price enough to sell units. Sony, however, is screwed.



To: Joe NYC who wrote (218363)12/1/2006 9:23:45 AM
From: bobs10Read Replies (3) | Respond to of 275872
 
you:

So it is not only Sony that will be profit challenged...

me:

I've always had more than a little difficulty understanding the gaming model since it sounds somewhat like a Wimpy deal " I would gladly pay you Tuesday for a hamburger today".

Personally, the way I look at it there isn't enough room in Dodge City for both gaming machines and PCs as they're redundant. Either game machines become PCs or PCs become gaming machines. This was part of my thinking when I got back into AMD on the ATI merger news.

To me gaming machines will have a very difficult time competing with PCs especially as PC prices continue to plunge and decent integrated graphics become incorporated with the CPU. It's hard to see how game makers can begin to compete with PCs on a cost basis.