Grampy on 28 May 2008
There is a lot of ways that a company can lose money even if their product makes money. Just having too much overhead, outrageous salaries, liability, litigation, lots of factors that are very individual to them. The biggest problem can be a design mistake.
Example Microsoft arguably rushed development of the Xbox 360 to get a jump on the market but apparently skimped on testing. Their console was profitable from the beginning and they would have done great except the Red Ring wiped that out and put them in the red. Maybe a bit more testing and catching the problem before full scale manufacturing and this generation might be very different.
