Why Video Gaming Consoles Fail


In response to my previous post on the reasons why Gizmondo and Tapwave failed, Andy Kessler, author of many fine books such as Running with the Bulls and more recently, How We Got Here, emailed and pointed out that the reason why most video game consoles fail is because from get go they lose money. X-Box is a good example. “You make up the losses by licensing others to sell games on your platform. This is why 3DO failed years ago, and why Tapwave and Gizmondo went kerplunk,” he says. Instead, he points out that even today, Sony and Nintendo ship $50 bills wrapped in each PSP and DS.

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