The "General Games Chat" forum, which includes Retro Game Reviews, has been archived and is now read-only. You cannot post here or create a new thread or review on this forum.
If they both gave up making consoles then it would be rather bad news!
Just think of it, with no other competition on the market, Sony would have a monopoly in the games market.
No competition against them would result in prices being higher, Sony wanting to charge as high a price as they could as they were the only choice that people had.
We need Nintendo and Microsoft to stay in the market for our sakes, we don't want to pay these massive prices...
So for once, there is a use for Microsoft being in the games industry!
Just think of it, with no other competition on the market, Sony would have a monopoly in the games market.
No competition against them would result in prices being higher, Sony wanting to charge as high a price as they could as they were the only choice that people had.
We need Nintendo and Microsoft to stay in the market for our sakes, we don't want to pay these massive prices...
So for once, there is a use for Microsoft being in the games industry!
Page:
Phi11ip wrote:
> No competition against them would result in prices being higher, Sony
> wanting to charge as high a price as they could as they were the only
> choice that people had.
Not exactly becasue beause if there was only sony left then everyone would be buyin it so sony wont have any need to charge hig prices as they will have enough money/cumstom to satisfy them
> No competition against them would result in prices being higher, Sony
> wanting to charge as high a price as they could as they were the only
> choice that people had.
Not exactly becasue beause if there was only sony left then everyone would be buyin it so sony wont have any need to charge hig prices as they will have enough money/cumstom to satisfy them
Mr. Happy wrote:
> A tad simplistic I fear.
> Sony, assuming they were the only firm in the console market, could not afford to hike prices up massively because another firm would see the fantastic levels of profit Sony was making and jump into the market
That doesn't really make sense. One of the conditions for a monopoly is high barriers to entry of the market. The above statement is kind of true, but it means that there wasn't a monopoly in the first place.
In theory if it was a monopoly Sony could hike prices substantially and because of high entry barriers theres not alot other firms can do about it (Eg. Microsoft products are expensive, yet no other firms have over taken the market)
>Economies of scale - the bigger your company is, the bigger the savings it can make and so it can pass them on to consumers.
Don't forget most large companies also face negative economies of scale (Communication, large sunk costs, etc)
>Finally if Sony were to make large profits then these could then be invested in research and development. Sony could research cheaper methods of production, or even invest the lot in the design of a stonking new console that could do 1000 times as much as the PS2.
X-Inefficiency. "Well I could spend lots of money on research, or I could just make a another "Fairly Good" console and save lots of money."
In general a monopoly will take the easier option, just because of the lack of competition.
God I hate economics.
> A tad simplistic I fear.
> Sony, assuming they were the only firm in the console market, could not afford to hike prices up massively because another firm would see the fantastic levels of profit Sony was making and jump into the market
That doesn't really make sense. One of the conditions for a monopoly is high barriers to entry of the market. The above statement is kind of true, but it means that there wasn't a monopoly in the first place.
In theory if it was a monopoly Sony could hike prices substantially and because of high entry barriers theres not alot other firms can do about it (Eg. Microsoft products are expensive, yet no other firms have over taken the market)
>Economies of scale - the bigger your company is, the bigger the savings it can make and so it can pass them on to consumers.
Don't forget most large companies also face negative economies of scale (Communication, large sunk costs, etc)
>Finally if Sony were to make large profits then these could then be invested in research and development. Sony could research cheaper methods of production, or even invest the lot in the design of a stonking new console that could do 1000 times as much as the PS2.
X-Inefficiency. "Well I could spend lots of money on research, or I could just make a another "Fairly Good" console and save lots of money."
In general a monopoly will take the easier option, just because of the lack of competition.
God I hate economics.
I suppose that's right.
Someone new could enter the market.
Someone new could enter the market.
AfroJoe wrote:
> If Microsoft and Nintendo left then Sony could also get quite
> sloppy.
Very true, but that's where the whole contestability thing comes into play. A contestable market is one in which anyone can enter at any time. Assuming the console market is fairly contestable for big companies at least, Sony would have to keep on its toes because of the threat of competition. Often the threat of losing your monopoly is incentive enough to avoid complacency.
> If Microsoft and Nintendo left then Sony could also get quite
> sloppy.
Very true, but that's where the whole contestability thing comes into play. A contestable market is one in which anyone can enter at any time. Assuming the console market is fairly contestable for big companies at least, Sony would have to keep on its toes because of the threat of competition. Often the threat of losing your monopoly is incentive enough to avoid complacency.
If Microsoft and Nintendo left then Sony could also get quite sloppy.
There'd be no competition for them so they wouldn't try and make the games any good any more.
The prices may also rise too.
We need multiple gaming companies in the market.
There'd be no competition for them so they wouldn't try and make the games any good any more.
The prices may also rise too.
We need multiple gaming companies in the market.
Mr. Happy wrote:
> Finally if Sony were to make large profits then these could then be
> invested in research and development. Sony could research cheaper
> methods of production, or even invest the lot in the design of a
> stonking new console that could do 1000 times as much as the PS2.
Just picking up on your last point Mr.Happy. Who's to say how much researching a faster system costs? It could cost 1 million or 100 million, either way Sony will insist on recouping any money spent in this way. And by what means do you think Sony will make money? By bumping up the price of a console of course! And the beauty of it is that new things can always be researched in terms of production/design and so Sony will always need funds.
> Finally if Sony were to make large profits then these could then be
> invested in research and development. Sony could research cheaper
> methods of production, or even invest the lot in the design of a
> stonking new console that could do 1000 times as much as the PS2.
Just picking up on your last point Mr.Happy. Who's to say how much researching a faster system costs? It could cost 1 million or 100 million, either way Sony will insist on recouping any money spent in this way. And by what means do you think Sony will make money? By bumping up the price of a console of course! And the beauty of it is that new things can always be researched in terms of production/design and so Sony will always need funds.
Cyclone wrote:
> Bad news.........................?!
Well it says that Nintendo may just be doing a Sega and go software-only.
So, it is good news they are staying in the market yet bad news they may not be making any more consoles.
Read the article, it's probably just a rumor thing.
> Bad news.........................?!
Well it says that Nintendo may just be doing a Sega and go software-only.
So, it is good news they are staying in the market yet bad news they may not be making any more consoles.
Read the article, it's probably just a rumor thing.
Bad news.........................?!
Phi11ip wrote:
> The link doesn't work for me, what did it say?
Gamecube may be Nintendo's last console.
Just go on the gamesradar front page, it's a headline. Don't know if it's true though.
> The link doesn't work for me, what did it say?
Gamecube may be Nintendo's last console.
Just go on the gamesradar front page, it's a headline. Don't know if it's true though.
Page: