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Profrektius on 21 March 2016
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potato_hamster said:
Profrektius said:

Most places outside of North America don't use the same kind of phone contracts model, and people buy their phones unsubsidized every 2-3 years. Yet the phones still are very profitable. I don't see a reason consoles couldn't do the same.

I'm going to need a source that the average smartphone owner person in say Austrailia or Japan or England or India typically spends $400-$1000 up front on brand new state-of-the-art phones every 2-3 years. 

Are you not seeing a problem here yet? The average console gamer does not benefit from this model in any way.

England and Japan do offer subsidies (some of the rare exceptions). India doesn't. Not sure about Australia. It is true that in countries where the carrier subsidies don't exist the marketshare of the high end smartphones is lower. I can't be bothered to find sources, but from personal experience in the few European countries I have lived in, there aren't really any options for such contract subsidies. You can take credit to the get the phones but that's about it. Most people buy the phones full price, and if they can't afford the more expensive phones they buy lower end or midrange or simply older models.

potato_hamster said:

The average console gamer does not benefit from this model in any way.

That is no reason for them to avoid doing this. If they believe they will benefit from it, they will do it.

Also I could see them trying some kind of subsidizing model for consoles as well especially in the USA. Bundle it with some subscriptions for 2 years and they'll subsidize part of the cost.