andywg
Bored into leaving
Actually a number of companies make the primary product at a gross loss and get the profit from peripherals.
Look at cars. Most car manufacturers (at least in Europe) make a loss on the individual cars, but the servicing and parts is where the profit lies.
I would not be surprised if Sony (and definitely M$) are selling the console at an overall loss, but raking it in from the games, after all, the average gamer must buy between 4 and 12 games per year, but will only buy a console once every 2-4 years, so they take a loss (known as a loss-leader and strangely enough illegal in UK supermarkets) on selling the product to get people into their market and buying other things they make a profit on.
The extra cost on Sony is the Blu-Ray drive, which will be a gimmick, I doubt that many games will come out using all 20gb of memory, and you only have to look at the original CD consoles that came out before everyone had CDs to see how well it works to put a player on a console that has no other uses (Mega CD anyone? Amiga CD32?...)
Look at cars. Most car manufacturers (at least in Europe) make a loss on the individual cars, but the servicing and parts is where the profit lies.
I would not be surprised if Sony (and definitely M$) are selling the console at an overall loss, but raking it in from the games, after all, the average gamer must buy between 4 and 12 games per year, but will only buy a console once every 2-4 years, so they take a loss (known as a loss-leader and strangely enough illegal in UK supermarkets) on selling the product to get people into their market and buying other things they make a profit on.
The extra cost on Sony is the Blu-Ray drive, which will be a gimmick, I doubt that many games will come out using all 20gb of memory, and you only have to look at the original CD consoles that came out before everyone had CDs to see how well it works to put a player on a console that has no other uses (Mega CD anyone? Amiga CD32?...)