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Whereas it is partially true to state that if you make more it is cheaper it does not mean that they are not making a loss.

The total cost of production will with a strong orderbook and a mature supply chain reduce. This of course is applicable to all 3 consoles. The painfull truth is currently they do not make a profit regardless of any production gains and at some point the reduction becomes harder and more difficult to achieve.

Currently it is likely that both Nintendo and Microsoft make a small profit on hardware sales in addition to a much larger profit from sales. Sony is not likely to be making a profit on hardware and is also likely to be making less on software sales but that is changing as they put more units out.

I still think they are gambling heavily on software sales to compensate for this shortfull along with changes to the economic climate such as currency.



W.L.B.B. Member, Portsmouth Branch.

(Welsh(Folk) Living Beyond Borders)

Winner of the 2010 VGC Holiday sales prediction thread with an Average 1.6% accuracy rating. I am indeed awesome.

Kinect as seen by PS3 owners ...if you can pick at it   ...post it ... Did I mention the 360 was black and Shinny? Keeping Sigs obscure since 2007, Passed by the Sig police 5July10.