By using this site, you agree to our Privacy Policy and our Terms of Use. Close
EpicRandy on 05 February 2024
Edit Thread
Esparadrapo said:
EpicRandy said:

Ayaneo does not have any owned facility and still makes endless PC handheld variations every other month or so. Lenovo and MSI are also in the game right now.

Simply when you change the strategy from having Hardware sold at a loss to hardware sold at profits from the start they can simply live from their appeal and be considered successful from a much lower sales threshold.

I think you don't understand how megacorporations like Microsoft work. Anything with a low margin and/or low volume like Ayaneo are disregarded and dropped at the slightest chance. That's why a games/franchises with just OK profits are forgotten. The developers have much better things to do.

I think you have a very simplistic take on what megacorporations are.

They are collections of various products with more or less success, they don't kill everything that is not a huge success. Product and service are kept and dropped based on risk assessment, not some uncontextualized number.

Anything with a low margin

Well, good thing I was specifically referring to Xbox evolving from a low-margin device to a high-margin one then.

and/or low volume like Ayaneo disregarded and dropped at the slightest chance

Not true, there are tons of MS products and services bringing in only marginal revenue to MS that are kept simply because the investment to maintain them is also low.

That's why a games/franchises with just OK profits are forgotten.

Again no, games with OK profits are forgotten because they represent a huge financial risk for studios. But if you pair a game generating ok profit with a low budget requirement then you get something like Pentiment being greenlighted. 

The developers have much better things to do.

On that, we agree but it's a clear difference between a hardware team and a software team. Dropping an IP with just OK profitability for something better is making a better valuation of your resource. Dropping Xbox for it being only OK profits means you get rid of the hardware team and generate no other valuation from them. Right now the risk associated with Xbox is purely there because it uses an approach where the price is subsidized and recouped by selling software, if you get rid of this principle then the risk associated with the hardware becomes extremely low.

Last edited by EpicRandy - on 05 February 2024