Drakrami said:
Uhhh.. Microsoft/Sony losses something like 50-100USD per console they sell right out of release year. While Nintendo profits something like 100USD per console they sell right out of release year. Reason? Beause Nintendo cheaps out on hardware. They charge you 300USD for the console, but it costs something like 200USD. While Microsoft/Sony's consoles costs 500USD to make. 200USD vs 500USD cost to make console, is there not a more obvious cheap out than this? Above numbers are estimates, but not far from actual numbers I bet. |
Making a profit on hardware isn't cheap. Nintendo don't have as many different revenue streams as Sony or MS, it's not unreasonable of them to want to avoid bleeding money on othe ones they do have.
Sony/MS don't lose money on hardware because they care about gamers or because they're the good guys, they do it because they want to maximise the money they make from subscriptions and software by growing their install base.







