greenmedic88 said:
This has always been SCE's business model since the PS1. The current generation differs primarily because it started with the largest discrepancy between manufacturing cost and retail cost yet seen to date. A $240 net loss per unit is ridiculous for something expected to sell in the millions. Less than three years later, SCE has managed to whittle that down to under $40, which would also be about as ridiculous (being able to scale down manufacturing costs so quickly) if it weren't so likely that this was all a part of the long term plan from the beginning. The the key discrepancy limiting success was the delayed acceptance rate relative to the last generation, not surprising given the 2X difference in initial retail price. But the reason why the focus by so many has been directed at the losses per unit, is that some tie this directly to SCE's ability to stay in the hardware business. And let's face it; some, for whatever personal reasons, are actually hoping to see SCE exit the business and will naturally focus on what they see as proof this has to happen. Of course, everyone knows it's not the profit per hardware unit that makes a platform successful, rather the ability to draw continued development support from the broadest spectrum of third parties. It's really only when that support dries up that a platform is finished, other than any major management level incompetence. |
I don't think anyone WANTS to see SCE leave. However, given the fact that they're STILL losing money on each console sold AND the fact that they're taking a huge gamble by assuming that SW/peripheral sales will make up for their losses, it's not an impossible outcome.
