BengaBenga on 08 July 2008
| antfromtashkent said: bigger profit requres bigger investments thats all it is :) |
But the actual profits won't be bigger at all. Licensing fees and margins on software have not increased dramatically since the PS2 age.
Lower install base = less games sold = less licensing fee AND less revenue on 1st party software.
AND development costs for the 1st party games have risen (4 fold is often mentioned).
So overall the bigger investment + bigger loss per sold PS3 lead to less profit (if profit at all).
