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>Don't most gaming consoles sell at a loss Initially, yes. Nintendo has traditionally turned a profit on most of their consoles (I'm not sure about the new one
by cthalupa 12y ago
>Don't most gaming consoles sell at a loss
Initially, yes. Nintendo has traditionally turned a profit on most of their consoles (I'm not sure about the new one), but for the last several generations Microsoft and Sony have been losing money on each console purchase - at least initially. Later during the lifespan of the console the component cost has usually dropped enough that they start to turn a profit
- philwelch 12y agoMost console launches are supply-constrained and you can't buy one for months, so why do they charge the normal $400 price at launch when people can just buy them and resell them on Craigslist or eBay for hundreds more? If they launch at a higher price they can just ride the demand curve downhill over time by reducing the price and profit from the start.