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Sony aims for comeback win with PS3
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<blockquote data-quote="drothgery" data-source="post: 3922821" data-attributes="member: 360"><p>As I repeat every time someone posts something along these lines, that's simply not true. The only console that ever achieved significant market share while being sold at a loss for most of its lifetime (or all of its lifetime) was the original Xbox, and no one lacking Microsoft's deep pockets would have kept the original Xbox around for 4 years while taking the losses they did. </p><p></p><p>Nintendo has never sold a console at a loss. The PS1 was never sold at a loss, and neither was the SMS or Genesis. The Saturn and Dreamcast were, but were complete failures. The PS2 was initially sold at a small loss, but was profitable by its second year. The Xbox 360 was initially sold at a loss, but breaks even or makes money for MS right now (depending on the SKU; the Arcade about breaks even, while the Elite is highly profitable because a 120 GB 2.5" hard drive and an HDMI cable don't cost anywhere near $170 at retail, let alone at wholesale when MS buys them). The PS3 is still being sold at a significant loss.</p><p></p><p>You can't make money in the console business by taking a beating on the hardware. If you do, you won't be in the console business very long unless you have other ways of making money.</p></blockquote><p></p>
[QUOTE="drothgery, post: 3922821, member: 360"] As I repeat every time someone posts something along these lines, that's simply not true. The only console that ever achieved significant market share while being sold at a loss for most of its lifetime (or all of its lifetime) was the original Xbox, and no one lacking Microsoft's deep pockets would have kept the original Xbox around for 4 years while taking the losses they did. Nintendo has never sold a console at a loss. The PS1 was never sold at a loss, and neither was the SMS or Genesis. The Saturn and Dreamcast were, but were complete failures. The PS2 was initially sold at a small loss, but was profitable by its second year. The Xbox 360 was initially sold at a loss, but breaks even or makes money for MS right now (depending on the SKU; the Arcade about breaks even, while the Elite is highly profitable because a 120 GB 2.5" hard drive and an HDMI cable don't cost anywhere near $170 at retail, let alone at wholesale when MS buys them). The PS3 is still being sold at a significant loss. You can't make money in the console business by taking a beating on the hardware. If you do, you won't be in the console business very long unless you have other ways of making money. [/QUOTE]
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