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Most console makers make NO money from selling the console itself, zero, nada, because they count on people buying enough games to make up for it, that's almost
by mattigames 7y ago
Most console makers make NO money from selling the console itself, zero, nada, because they count on people buying enough games to make up for it, that's almost the opposite of how Apple works, where the extremely high margin they get for each iPhone is their main source of revenue and on top of that they do this thing of charging 30% for each transaction.
- bradknowles 7y agoThat 30% is specifically designed to be a little bit above the cost of running the system as a whole, but not much. As you point out, they really don't make much in the way of profit on their software or services -- almost all their profit comes from selling the hardware. So, 30% is just the cost of doing business in the ecosystem. If you don't like that, you don't have to participate in that ecosystem. It is entirely your choice.
- random314 7y ago> That 30% is specifically designed to be a little bit above the cost of running the system as a whole, but not much. Unless you work in the finance department at Apple, you have no way of knowing this. And if you do, disclosing this is a fireable offense.