Not all xbl members are gold subscribers. Silver is FREE. The MSRP for Live is now $59.99. And even then not everybody pays MSRP. You also need to include the cost of overcoming the previous system losses for the business unless nobody wants to harp on that figure anymore. I guess MS could increase the MSRP to $79 and delete those few ad tiles, or keep the current gold sub price and start charging silver members at some pricepoint less than gold. Or keep the current model where those not offended subsidize the silver members, and the ads help keep the price in check.
Short-changing IS a valuable lesson actually. A short-changed PS3 (No BR) would have launched sooner, gotten devs onboard sooner, and therefore obliterated MS. A short-changed 360 (less power hungry chipset) would run cooler and thus no lead-free solder problems, therefore no 1B charge. A higher spec'd wii would have taken more profits away from Nintendo, when they obviously got by with less expensive hardware. And so on. So yes, there are lessons to learn all around, including hitting a sweet-spot rather than engaging in fan spec wars.
Why not a short changed PS3 with a much weaker GPU then? I wonder how that would have went over (hint, like a lead balloon).
Similarly, a weaker 360 wouldn't have been able to keep pace with PS3 as well as it has.
Wii sold well for a while, though it's longevity was horrible, which is why it sold 92,000 last month in NPD. But it sold on a gimmick that made it's power fairly irrelevant, at least for 2-3 years. We're rehashing things everybody should know by now.
If Nintendo can come up with another gimmick that captivates people again with Wii U, they can do it again. My bet is they cant and wont, because I just dont see a tablet controller captivating Moms again.
You do have to be smart about it. a slightly higher specced Wii, you are correct, probably would not have gained Nintendo anything. Lets say a 50% more powerful Wii, still would have been ignored by all the hardcore in favor of PS360. You likely would have had to start getting close to PS360 in power to pull anybody away from those two, anything less would likely have fallen in the realm of added cost for no return.
I think a strategy of serving the core gamers with a powerful system and then branching out to the casuals if possible is the one that doesn't lead to a foundation on quicksand.
The last figures released released by MS show they get less than half that from Live Gold memberships, and 3rd parties are increasingly wanting a larger cut of that.
Do you have a link for those latest figures?
As far as third parties wanting a cut, AFAIK there's been some shady rumors of Activision getting a little bit (which mainly was before COD Elite launched and Activision were getting zip from online play, it may not even be the case anymore) and that's about it. Believe me if MS is in the habit of paying third parties Live money, then Sony will have to follow suit in some fashion, so that doesn't really make sense.