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Gearbox said:
wouldnt they make their loses back with software sales?

 

The licensing fee on third party titles is about $10. To make up the additional $200 they would lose per console sold each person would have to buy 20 third party games along with their $200 PS3 to make up the difference. Even if you use 1st party titles as an example, each new PS3 customer would have to buy 6 or 7 full priced Sony first party titles with their PS3 for Sony to break even. This is assuming that Sony is breaking even on the PS3 priced at $400. Also this does not take into account the reduced or eliminated licensing fees given to publishers for third party exclusives.