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Greenbeans said:

You don't understand that they're making a loss. Selling a million consoles with $50 profit is more than selling 10,000,000 with a $20 loss. 

1. +50,000,000 dollars. 

2. -200,000,000 dollars. 

 

Simple math. 

Just because they're losing money with hardware doesn't equal overall loss and profit. You realize MS, Sony, Nin make majority of their profit from software right? Hardware has never been a big money maker for any console developer.