Zippy6 said:
Sephiran said:
To be fair i don't really understand how its even possible for Sony to do big price promotions in the US this year, tariffs on countries in Asia are like 20-25 %, meaning Sony should be losing fairly big money on PS5 sales in the US at this price point. But maybe its a loss leader strategy at their part to lose money on hardware sales to get more people into the ecosystem. And they do have huge subscription revenue, huge third party sales, huge digital sales ratio and huge accessory sales, Nintendo has far fewer means to use that same loss leader strategy, because they have less avenues to recoup hardware losses. |
You'd think so. But there fiscal report from just a few weeks ago said they expected to lose less money on hardware this year. "Decrease in losses from hardware." 
So they can't be losing an insane amount with these deals, and unlikely it's a case of they changed their plans as the big discounts started just 10 days after they made this report. |
I wonder if Switch 2 being tied to Nvidia means the profit margins on the hardware is as useless as it is for Nintendo. If that is the case, Sony going with AMD seems the better strategy.
