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Intrinsic said:
PortisheadBiscuit said:

Business also works where profit is more valuable than just revenue.

So lets see.... if sony decides to "give away" the PS4 and say sell it at $150 ad take a loss of around $20 per console.... hell they even throw in spiderman which is a first party game for them and they own the IP at no extra cost and maybe pay insomniac $10 in royalties for every copy of the game they ship with the hardware. So that takes the loss up to $30 per console. And sell around 10M of that particular loss leading sku to a tune of $300M in losses. 

How many of those 10M new PS4 owners do yopu think will buy at least 1 other game in say the next 3 months? Or an extra controller, or god forbid a PS+ subscription?

There are multiple ways to be profitable..... especially when it comes to consoles.

The demo changes when you price your console in the $199 range. More influx of budget gamers, impulse buyers, low income families etc; There's not a garauntee buyers will add money to the back end. There's a reason Sony has limited runs of loss leading bundles. Sony understands business a lot better than their proponents do apparently.

 

This still avoids the original point I was intending to convey in the first place. Nate4Drake was insinuating Smash isn't a threat for the holidays due to Sony being able to sell PS4s at such a heavy discount bundled with AAA titles. That's a lot of effort on Sony's part just to keep Smash at bay..