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rocketpig said:
TheBigFatJ said:
Whatever their profit is, it will be a paper-only profit. That is, their expenses will exceed their revenue, but they will hide that fact with money set aside and charged to their previous fiscal year.

True, but at least it's starting to prove that their business model is viable over the longterm.

Just cut the RRoD crap next gen.


 It's not viable in the longterm.

 

A razor & blades business model only works when the console has overwhelming marketshare and mass exclusive third-party support, such as the PS1 and PS2.

MS would need to be the overwhelming market leader in order to turn a consistent profit. It isn't happening. They pretty much made sure that they weren't going to turn a profit when they rushed the hardware, sold it at a loss, and priced it too high. 

 



 

Consoles owned: Saturn, Dreamcast, PS1, PS2, PSP, DS, PS3