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z101 said:
Andrespetmonkey said:

$50-100 losses is not a problem, Sony will only be in trouble if they get upto around $200 I think. Microsoft could afford to eat $200 if they really wanted to try and dominate Sony and maybe Nintendo.


Sorry but 200$ loss per console? This is absolutely absurd.

Nether Sony or Microsoft will do that. I only suggested this for Microsoft, please read a little more closely. Microsoft lost around $150 per 360 at launch, yet the Xbox 360 division has made them billions in profit. 1.2 billion as of summer 2011 I believe. It isn't absurd at all, that money will eventually be made back through software, the main source of income for consoles.

In fact they will watch that they make no loss at all. Both companies lost millions of dollars with the expensive PS360-Hardware. PS3 lost money because of the billions spend in R&D. PS3 took a $250 loss (more or less), which while I agree was too high at the time and would be suicide now, this isn't what's held the PS3 back from being profitable. The Xbox 360, like I said, is now making Microsoft billions, so those initial losses (which they made back ages ago) are totally justified.

$50-100 on PS4 is nothing. They'll make $50 back through software in half a year easily. $100 would be made back in a year probably. (this is on a per-consumer basis of course)