Google throws their hat in the console ring

[DonFerrari]

bonzobanana said:

DonFerrari said:

Bonzo, not all companies operates on the profit philosophy... like Amazon. All that is generated is reinvested on the company (that is if they are even operating at any profit margin on the products)... they work on growing the company value and investors making their money this way.

We aren't talking about that here though we are talking about making a loss even a small one to establish your product/service in the market place and ideally  end up in the no.1 position. Amazon certainly have a history of loss making to establish themselves. They haven't had profits to plough back into the business most of the time they have been servicing debt and investors playing the long game. As they have become larger and removed much competition they have moved towards profitability. Surely that is how they have kept investors on board. 

And it is still to see if at any point government won't rule them a monopoly and destroy the company due to their lower than cost prices.

But anyway, yes it's common to launch product or ideas at break even or small loss to gain traction. Still 10/month for PS4 AAA like quality games on stream with plethora content would still be hard to consider. Companies may have deep pockets and aggressive plans, but even though people thought that would make MS win this gen that doesn't exactly work out like that.