Microsoft and Sony are destroying their (and each other's) gaming business

[Darc Requiem]

Netyaroze, Sony uses a lost leader strategy. It took Sony years to make money off of the PS2 hardware. This took a huge chunk out of the profits Sony garnered from its own software sales and licensing fees. Sony didn't make a profit off the PS2's hardware until its third year on the market and if you noticed that when they made the most money the PS2. When you use that type of strategy it great reduces your profits to create a larger userbase that the company hopes will make up for their initial losses.