Kasz216 said:
Sega ALWAYS used a loss leading strategy. It's where Sony learned the idea from. They were doing it way back on the Master System. (to my knowledge anyway) The 32X, Sega CD and all that crap was just due to poor management. Their execs sucked. Nintendo's been the only company to ever have a "profit over marketshare" mentality. Well outside of like... Neo-Geo. But they didn't even plan on selling any Neo-Geos to the public... they just released it to them because of popular demand. Well Atari probably too. Had they not made the 32X and Sega CD. Or even maybe cut out the Sega Saturn. The dreamcast coulda beat the PS2. |
I disagree with that statement. Sega consoles always started selling for profit. I know for a fact that Genesis ($189), Sega CD ($299) and 32X($149) were sold for profit at launch. Over time they may have lowered the system below cost due to no demand.
With Saturn they were forced to sell at loss for the first time after 3 months on the market(When PS1 came out for 299 vs 399 for the saturn) and then in less then a year PS1 went to 199. That was a cost reduction sega wasn't able to make as they didn't have as much money. So their losses started accumilating...and with smaller marketshare they couldnt sell as much software to recover the loss.
Dreamcast was sold to break even...and infact CEO Bernie Stollar who was in charge of Sega USA was fired by Sega of Japan after its launch because he overulled their instructions and didn't sell it for 249 and a 50 dollar profit.
So I don't think selling consoles below cost was ever segas strategy . They almost made as many consoles as they did games lol...how would they pull a profit if they were giving them away below cost?







