In the end, which is more important....Hardware or software sales?

[DragonLord]

The software is where the money is at (except Nintendo--they profit on the hardware too). Sony loses money on every ps3 console sold. MS lost on the 360 for awhile. Why? Because they know they'll make the money back on software.  But there is correlation.  The more hardware out, the higher the potential to sell more software...unless a console has odd attach rates.