It is when it revolves around console hardware, if the makers could produce $0 consoles in order to sell their software and make their investors happy, we'd all be sporting $0 consoles.
The money in games is online content and software, it is not in making $20 off of 500,000 console sales.
I beg to disagree. While selling consoles is the number one priority, add on hardware is also important, especially when considering how a lot of Move (and all Kinect) titles work only with the add on. The companies need to quickly establish a large install base that will encourage developers to make quality games which in turn will expand the base even further. And that is when the mega bucks start rolling in.
In any event the numbers dont lie. MS is currently whipping Sony in the motion controls renaissance of the 7th generation of console gaming.