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I would say any product that is sold at a loss is a failure if at some point it doesn't start to make a profit. A company can't have much faith in it's product or think it is worth the price if it can only sell it at a lower price than it costs to produce it! Supermarkets of course do this all the time with everyday products like bread and milk etc but of course they have 1000s of other products to make a profit on. With a console it must be a lot riskier.