| libellule said: NJ5, (for tomorrow maybe) They have lost everything but they didn't made so much money compared to the little Ninty. PS2 = 120M unit = +2 billions only ... quite poor compared to the sales of the console. |
That's what Loss Leading does to you.
Loss Leading is really only useful when you want to expand your userbase. Which is why it made sense on the PS1. Loss Lead and then you've got an instant userbase and credibility for PS2 and PS3.
PS2's loss leading made no sense... as it was out second, behind the Dreamcast who's sales were slowing and suffering due to PS2 hype before it was even out.
PS3's loss leading I guess was just done so they could include the Cell and Blu-ray to intergrate their different divisions. Either that or they were just tryng to drive Microsoft and Nintendo out of the videogame market.
Those are really the only two reasons to loss lead when you are the market leader... cause loss leading pretty much always costs you profits wise, even when you do generate a lot more sales.
