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Farsala on 28 January 2016
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method114 said:
Farsala said:
Its funny that they decided to lose out on revenue on Xbox One hardware for other revenue. Which is why I think Sony realized price cuts can be the smarter move. The attach rate and online fees definitely make more profit then hardware does.

I think Sony did the price cut because they could and are able to still make money with the console. I honestly don't even think Sony is competing with MS at this point anymore. No matter what happens from here on out they won. Last gen xbox had like an 18 million lead over Sony in the US there is no chance of that happening anymore so they've won even if they end up behind MS in the US by a million or two. Sony at this point is pretty much on fire and just needs to concentrate on releasing exclusives and making sure they don't lose anything to big. Was really shocked Xbox let SFV be exlusive to Sony honestly.

That seems to be true at this point in time. But there is some sort of spreadsheeting going on to maximize profits.

MS took the blow to hardware as they now realize they will not sell double their competition, and instead are incentivizing people to buy early and spend money on Xbox Live and software.

While for Sony they can still profit a lot from hardware at the cost of small % of marketshare.