Kynes on 19 February 2013
| TheLastStarFighter said: A $200 loss per console would mean the end of Sony's gaming division. It would be virtually impossible to make the money back. The typical game attach rate is 10 for a console, so if you sold 10 games at a $10 profit each, you would still be at a loss at the end of the console's life. The loss-lead strategy Sony and MS have used is a terrible one. There is a reason Nintendo made more money off GameCube than Sony off PS2...which sounds rediculous to say. Having a big loss on hardware only works if you have an alterior motive - such as pushing bluray or the Windows format - where your corporatation would make extra money elsewhere thanks to support from your games division. Unless Sony has such a secret plan, selling PS4 at a major loss would forever doom the division to be in the red, and probably mean it's end. Also, selling at the same price as WiiU doesn't mean it will get more sales. |
MS has something that lets them recover the money, live gold. Most people don't see the huge cashcow live is, and why they won't cancel it on the next generation.
