http://www.computerandvideogames.com/38 ... -of-japan/

AKA pulling a Sony and getting too cocky with your pricing and BS

I think that they have identified the problem. It is the lack of decent games and they are also held back by lacklustre sales of the device as well. They have not reached that point that they feed back positively for each component. Games need decent numbers of consoles to make development worthwhile. Consoles need the number of games to make people take that chance.

That's the Nintendo way though. Every Nintendo console since the SNES has ended up having relatively poor 3rd party support and being kept alive mainly by Nintendo's own games. The problem is they generally don't make a lot of games a year. The Wii succeeded not because people bought Wiis and lots of games, they bought Wiis in massive numbers but generally didn't buy all that many games so NIntendo's own production rate was fine. On a console where each game doesn't last the user long enough for the next Nintendo game to come out, it becomes an issue as people see other people who have them leaving them to gather dust because there's nothing to play. That's what happened to the N64 and GameCube.

But there's also competition from smartphones. I tend to play cod on ps3, have started playing wow on pc but still play the majority of games on my iPhone. I will often spend £2-3 on a game that will last me say a week, and I'll buy a new one every 3-4 weeks or so. Hence I spend more on iPhone games than on ps3 games!

I might spend the same on console or iOS. I buy few games but the price of iOS games means I can get more of them.