While Sony is losing market share in the console market, it is winning the “Battle for the living room” with Microsoft. With momentum gained from the previous 2 generations and technological superiority of Sony’s offering, Microsoft has taken a bigger blow, with almost double the operating loss of Sony. (Sony operating loss of $1246.1 M vs Microsoft $2066 M, from Exhibit 2b in the Responding to Wii case – Harvard Business Review).