3DS costs 15$ more to produce than DSi

[milkyjoe]

greenmedic88 said:

milkyjoe said:

I've always loved the spin that it's somehow good for gamers when a company sells at a loss. Let us ignore that this business model killed plenty of gaming companies that were around long before Microsoft or Sony entered the industry, or that massive losses caused Sega to stop producing consoles.

No, it is obviously perfectly healthy for a business to sell things at a loss, because you know, that means they care....

I'd like to see Sony and Microsoft use the same business model if they didn't have other areas of business to fall back on while their gaming divisions eat up billions. They would be dead and gone already.

You're completely ignoring the revenue streams both SCE and MS generate due to their gaming divisions alone. Profit isn't everything.

I disagree, outside of things like charities or other non-profit organisations (funnily enough, gaming companies would never fall into this bracket) there isn't a company in existence that doesn't want to make a profit, be it from day 1 or somewhere further down the line.

Companies who make a loss at some stage aren't doing it out of some sense of love for their customers as has been suggested here, they're doing it to try and gain market share which they can then try to exploit to turn those losses to profit, which is exactly what Microsoft did with the first Xbox. Lesser companies with less backing wouldn't have been able to follow that model though, which brings me back to Sega and the like...