Kynes said:
PS: Read about the razor-blade model. |
Yeah I assume Sony and MS are using the "Loss-leader" approach where they make the money back through very expensive periphenelials (terrible spelling I know) on controllers, new software, etc. However, Nintendo beat both on that front as well (nunchuks & wiimotes). Add on the fact that first party games for Wii never get discounted and it appears that Wii is arguably the greatest cash cow ever in video games (Assuming PS2 will have made more when all is said and done). As much of a Wii-hater as I am; from a business standpoint it's incredible
Love the razor model: "A business tactic involving the sale of dependent goods for different prices - one good is sold at a discount, while the second dependent good is sold at a considerably higher price"

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