I believe Nintendo sold the Gamecube at a slight loss but generally Nintendo makes money on the consoles, the dev kits, and the games. They make money in every department. So the fact that Sony lost money on this particular console is interesting and isn't "water is wet" triviality.
So actually, it kind of is "water is wet" that the PS5 an new XBOX whateveritsnameis are sold at a loss, especially considering their performance. The interesting fact is that Ninendo apparently sells Switches at a profit.
Subsidize razor to profit off blades (Score:3, Insightful)
Consoles are loss-leaders. It's commissions on game sales they really want.
Re: (Score:3)
Consoles are loss-leaders. It's commissions on game sales they really want.
Exactly. I'm not sure how the concept of a loss-leader is so foreign here. Grocery stores have done this for decades to get you in the door.
IMHO, the price isn't low enough. Provide the console for free. Charge for the games. You'll probably get more customers that way.
... because it's not always true? (Score:0)
Re:... because it's not always true? (Score:2)
So the fact that Sony lost money on this particular console is interesting and isn't "water is wet" triviality.
Sony and MS lost a lot of money on the PS3 and XBOX 360 too https://www.theguardian.com/te... [theguardian.com]
https://www.mcvuk.com/business... [mcvuk.com]
And apparently also on the PS4 and XBONE (but less) https://www.forbes.com/sites/e... [forbes.com]
https://www.independent.co.uk/... [independent.co.uk]
So actually, it kind of is "water is wet" that the PS5 an new XBOX whateveritsnameis are sold at a loss, especially considering their performance. The interesting fact is that Ninendo apparently sells Switches at a profit.