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For those that do not understand why a company would sell their consoles at a lose look up the Razor-Razor Blade business model.
Consoles = Razor
Games and accessories = Razor Blades
In the past most companies sold their consoles at a loss (except Nintendo) at launch but this time around it looks like only Sony is actually making a profit on each console. People buying multiple games plus extra controllers and such makes a much higher profit than the $20-$50 they lose on the console itself. So having more consoles in more peoples hands makes the most sense.
Originally posted by lizardbones Originally posted by Daranar Originally posted by lizardbones Sony stated that they are not selling their consoles at a loss. Some people are even saying that Sony will turn a profit on each one shipped. Not much profit, but $25 to $55 per unit shipped isn't chump change. http://www.playstationlifestyle.net/2013/06/11/pachter-sony-almost-certainly-making-a-profit-on-399-ps4/
This makes sense to me. Hardware was more expensive when the last generation released. It seems that if you could build a cheaper PC then the console hardware costs to Sony and Microsoft would be even lower. It only makes sense, given the price point, that the new consoles are paying for themselves.
The old business adage is: "You make money on the blades, not the razors.".
It's been said to apply to videogames as well.
edit: Apparently I should have read the whole thread. I've been beaten to the punch.
I want a mmorpg where people have gone through misery, have gone through school stuff and actually have had sex even. -sagil