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That's one way to see it. The other is, assuming this applies also to their next gen proposition, which is unlikely, is that they are side-stepping the manufacturing of HW and offering the equivalent platform free of distribution costs and free of production costs (which they were mostly selling at a loss in their current bleeding-edge strategy).

But historically, given the history of ties, it's a valid way to see it I guess, since selling a console at a loss is not a normal approach.