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kirby007 said:
DMeisterJ said:
kirby007 said:
outlawauron said:
kirby007 said:
outlawauron said:

It's the same with MS and Nintendo. All they care about it shipping to retailers.

all they care about is making money...

 

Exactly. And they get that money from shipping their product to retailers.

So they aren't losing money with every console they ship?

What does that have to do with what he said?

Yes, they lose money with every shipped console, but what does that have to do with retailers paying them for the consoles?  It's not that complex.

Retailers pay Sony for consoles, Sony ships consoles.  Sell-through is irrelevant as they don't get their money from us, but from retailers.  Yes, they lose money on every console sold, but that doesn't mean they don't get paid for shipping their consoles to retailers.

correct but why would you do that, it is like selfdestruction

making losses on the things you sell is bad for the continuancy of the compagny

maybe i should have said profit?

Because the more systems that are out there, the more possible profit.  More money is made off of games, And severely overpriced accessories.  The more systems, the more accessories and games to be bought, therefore the more money to make. 

This is the general theory in taking a loss-leading strategy.