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KLXVER said:
Dallinor said:

The reason for a company to offer an upgrade is very simple- to make more money.

Both MS and Sony know that there is a section of their consumer base interested in the latest new tech. Targeting these consumers extends beyond just console upgrades. There's been a noticeable increase in the focus on high end peripherals as well, controllers, headsets etc.

A mid gen upgrade allows them to bridge the gap between generations and ultimately make more profit on hardware.

In particular this generation the focus was on 4k. Next generation it may be something else entirely. 

It is all about the money. You are right. Just like paying for online is all about the money. Just like microtransactions are all about the money. 

If all about the money was a good excuse, then every gamer would be happy..

He explained why companies do that, you asked it.

About why customers buys, it is because customers would see value on the product/service.

In free market companies see the margin between price and cost to see if it is enough to ensure supply. Customers see the margin between price and perceived value and see if it is enough to ensure demand. When Company have price enough above cost, and customer see value enough above price both agree to exchange.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."