Sony and Microsoft are not doing well in the console business, and unlike Nintendo last generation they are both posting losses for the most part. Sony's PS3 is being outsold by the Game Boy Advance sometimes and future game releases are uncertain and not numerous while they make a $300+ loss on each console sold (except in Europe where they're selling it for $850). Microsoft's Xbox 360 is paying off the enormous losses of the Xbox and Microsft have admitted all of those sold are potentially faulty and it will cost them $1.1 billion+ to fix.
Why haven't Sony and Microsoft "give up" and leave the industry to cut their losses: the predictions for the future are pretty much more of the same with Wii and DS have very rapid and often supply-limited sales (i.e. they're extremely popular).
It's all very well doing it for prestige and to "get the next generation of technology (read: HDTV, HD-DVD and Blu-Ray) out there", but the core thing is profits, and not even software sales can make up the production, development and marketing costs for either company.
I don't want to see a Nintendo monopoly, but...
Why haven't Sony and Microsoft "give up" and leave the industry to cut their losses: the predictions for the future are pretty much more of the same with Wii and DS have very rapid and often supply-limited sales (i.e. they're extremely popular).
It's all very well doing it for prestige and to "get the next generation of technology (read: HDTV, HD-DVD and Blu-Ray) out there", but the core thing is profits, and not even software sales can make up the production, development and marketing costs for either company.
I don't want to see a Nintendo monopoly, but...