5 ms·
Perhaps monopoly abuse is not the right term, but Microsoft did buy their way into the gaming industry by selling millions of consoles at a loss. There is no wa
by mytherin 6y ago
Perhaps monopoly abuse is not the right term, but Microsoft did buy their way into the gaming industry by selling millions of consoles at a loss. There is no way for any company that is not already a multi-billion dollar company to compete with that. The same happens in many other areas where large tech companies use their inertia and tons of existing capital to make it impossible for anyone but other tech giants to compete with them. This is extremely problematic because these companies almost win “by default” just by swinging their weight around, even if their product might not be the best product in that area.
- transperceneige 6y agoPredatory pricing is what you are refering to.
- p_l 6y agoYou might want to change your example, as while the tactic is reprehensible and common to VC-backed companies, selling consoles at loss is standard practice for I think all makers (they recoup it by license fees on games)
- mytherin 6y agoNintendo doesn’t sell at a loss - only Sony and Microsoft do. Both are huge multi-billion dollar companies that entered the console market using money they had from other ventures. There is also effectively no other competition on this market besides those companies. I think my example is fine.