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logic56 said:
chicoedge said:
 

Because the money is in software and accessories, not the system hardware. Sony is projecting that they will sell enough Vitas in 3 years so that the money they make from third party game sales, their own games and memory cards will be enough to turn a profit.

and you know this how??


I know this because I can read.

http://www.eurogamer.net/articles/2011-06-09-how-sony-will-offset-loss-making-vita

 

<snip>

The price, cheaper than many expected for what is a powerful gaming handheld, is a deliberate attempt by Sony to broaden the Vita's appeal beyond core gamers and technology enthusiasts, Sony Computer Entertainment Europe boss Andrew House told Eurogamer yesterday at E3.

And it's willing to take a hit on each Vita sold because it reckons game sales will compensate.

"We have operated by and large very successfully around a model that works on what we call a blended margin," House said.

"We have very low margins or possibly negative margins on the hardware, offset by a much more attractive margin structure on software and peripherals. We'll manage the business very much in that same way for Vita."

Sony, which makes money on every game sold on its hardware by virtue of a license fee it charges publishers, is yet to announce how much Vita games will cost.