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Reggie: MS and Sony are hobos, living in cardboard boxes

Well, not exactly, but imagination can be fun!

No, Reggie in fact thinks that his company's competitors have boxed themselves in this generation. Why? Because they chose to invest heavily into cutting-edge technology. The decision to go with photo-realistic, HD graphics is going to be bad for them in the long run, Reggie thinks.

Sony and Microsoft have "gone down the path with building expensive machines that they lose money on. They've gone down the path with games that are hard to develop," he adds. And, if you want to look at sheer profit-per-console, then Reggie is right. And, if you want to look at total consoles sold, then Reggie is right again. Microsoft and Sony have yet to turn a profit on their divisions, while Nintendo has been enjoying the cash money for quite some time now.

But, he makes a valid point: if Microsoft and Sony are already producing crazy, high-end graphics for their games, where will they go from here? Nintendo has innovated how games are played without the need to produce these expensive visuals and been incredibly successful.