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osed125 said:
pezus said:
This could still mean that they'll be selling PS4 at a loss btw. Just that they don't expect to lose $400 on every PS4 like they did with PS3 . A $100 loss per PS4 and software that makes up for the initial loss is the way to go.

$100 loss? That's insane, you will need to sell 14 third party games or 4 first party games per console to recover that money (based on this, for first party it will be $27 per game and $7 for third party games (platform royalties)). Although I don't know who gets the $7 from "Returns", most likely the publisher, which in that case it will be 3 first party games.

True, but I think (hope) Pezus was just throwing out an arbitrary number.  They are most likely looking to get very close to break even, or better yet, make a profit.

 

The problem is you really don't want to come out and say that because people want everything for cost.  They want to think they are getting the best deal possible.  I still think Nintendo is full of it when they say they are losing money on the Wii U.  I think they are heavily inflating their R&D associated costs, opportunity costs, etc. when they make that claim because it makes them sound good (like they do it for the people).  A lot of those numbers can be massaged.