3 ms·
> Gaming console is the exception, here margins are 0% or less. For reference: https://www.gamesradar.com/ps5-is-being-sold-at-a-loss-but-has-generated-record-
by judge2020 5y ago
> Gaming console is the exception, here margins are 0% or less.
For reference: https://www.gamesradar.com/ps5-is-being-sold-at-a-loss-but-has-generated-record-gaming-revenue-for-sony/ https://www.gamesradar.com/ps5-is-being-sold-at-a-loss-but-h...
For both game consoles and phones (mostly on the iOS side) the post-sale revenue is part of the overall profit scheme - PS5 hardware is sold very near-cost but all the money Sony makes off PSN and their cut of game sales becomes profit. Apple makes up-front margin from the hardware but also expects profit from in app purchases - if that wasn’t guaranteed, they might raise prices to make up the difference. Is it anti-consumer? Probably, for both the game console side and the phone side since the consumer ends up indirectly paying more after purchase.