> In the example of game consoles, Sony and Microsoft aren't trying to sell you a PS5 or Xbox Series X because it makes them money. In fact, they take a loss on

> In the example of game consoles, Sony and Microsoft aren't trying to sell you a PS5 or Xbox Series X because it makes them money. In fact, they take a loss on them even in "normal" market conditions. The point of the console is to lock you into a software ecosystem that they can charge developers a 30% tax in order to access. This is a good argument for producing more consoles, but if there isn't enough supply to clear demand then getting more of the limited stock of consoles into the hands of consumers with less money to spend on gaming is not likely to increase overall spending on the related software.