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Cobretti2 said:
Game_God said:
Cobretti2 said:
Game_God said:
NightDragon83 said:
Rab said:
profit > userbase

How can that be when larger userbase = more profit over the long run, and smaller userbase = smaller profit over long run?


There is nothing true in your sentence.

100 people buying X product at 10$ loss won't put more money in the bank than 1 person buying Y product for 10$ profit!

More consoles = more games sales = more profits from games

So let's sell X1 at 1$, shall we??? Sales skyrocket ensuing massive profits, right???

There are a quantity of variables, factors to take in account wich you happily swept of the picture like they are nothing... Thresholds, diminishing return, profits from games go tho said game publishers, not all games make profit etc. etc.

While your "More consoles = more games sales = more profits from games" formula isn't necessarly false it's not necessarily true either!

Futrhermore, user base is not dictated only by the price, look at Iphone, not the cheapest phone on the market, yet...

Rather than parting money with a price cut, better & a lot more marketing would do marvels IMO.


lol i was just explaining what his logic behind his statement is. As it works from Microsoft and Sony in the long run.

That's fine, I was just explaining how this simplistic logic is faulty. I know that you have to spend money to make money but to some extent. If Xbox wasn't backed by Windows money, it would have shut down long ago but here we are entering the dumping issue & how unfair, dangerous it is... so another topic...



https://www.youtube.com/watch?v=n29CicBxZuw

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