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

[Max King of the Wild]

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.

Two words: Digital Distribution. (+ you aren't considering subscriptions or accessories.)