Sony: "Unlike PS3, we are not planning a major loss with the launch of PS4"

[Zero999]

Netyaroze said:

Wagram said:
Never understood selling a product at a loss to recoup through software or accessories. I don't believe i've ever seen that as a successful viable strategy.

Its called the Razor/Blade model. Sell the Razor with proprietary blades at a loss and make profit on the blades later.

 

It worked out for Sony with the PS1 and 2 both consoles were sold at a loss first. Its an agressive tactic but can massively backfire (PS3/Xbox) Its basically a strategy to get a foot in a competitive market (Consoles/Bluray), it can proof succesful long term. Lets say Samsung suddenly wants the console market now they could start bleeding money and sell at loss with the hopes to choke out Sony or MS or Nintendo. Sony did that with Sega (299vs399) MS secured a spot in the console market and Sony won a format war.

i think the biggest problem is when the console is still expensive while selling at a loss, wich is exactly what happed last gen.