That requires an exclusive system where only licensed developers can create games/apps for the device, and the device creator gets money from the game/app devel

That requires an exclusive system where only licensed developers can create games/apps for the device, and the device creator gets money from the game/app developers. Without that, there's no way to recoup the money lost on the equipment sale. And none of those involve losing 2/3 of the cost of the device.