Gizmondo Future Looks Bleak 27
Gamespot reports that the company behind the Gizmondo handheld console, Tiger, is looking at some tough financial numbers. Mostly, it seems, brought on by poor sales of the console. From the article: "Gizmondo Europe subsidiary has experienced severe financial pressures from various vendors as its cash flow has been unable to service the requirements. This has in part been aggravated by a lack of investor funding. The company has been actively negotiating for further funds from debt and equity sources to assist the cash flow needs of Gizmondo Europe but there can be no assurances that this will be achieved."
General Rule (Score:1, Interesting)
How many companies have tried and maintained long term success? Nintendo and Sony (Sega and Atari could be considered, but their current state in the game market says a lot). Whether you like it or not, you have to admit that the Gamecube is a technical marvel in how much power it packs for the cost, and the brand recognition Nintendo has produced (everyone knows what a Gamecube is regardless of whether they know anything about videogames); yet, although being very profitable, was not very successful in mass market terms.
No market newcomer can produce the technical quality of product, at the price point, with the quality of exclusive game, that Nintendo can. The simple fact is that if you're considering entering the market you are going to loose; Microsoft survived by loosing $200 per system sold, and still are having difficulties.