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Given recent price rises for console hardware I think they're struggling with that too though. The model doesn't work as well if the components get more expensive over time and not less?
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But PC parts are also getting more expensive, so the difference is still there.
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Yeah I mean specifically the "sell at a loss, wait for costs to get lower over the generation" thing. if it's at a loss at the start of the generation and component costs only rise, it'll still sell for a loss at the end but also it'll be more expensive for customers. this puts the company in a hard position. a lot of gamers are also used to waiting until the end of the life of a console and getting games used, which might no longer be an option
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Oh, for sure! It's not getting any better with PC part prices lately either...

I've never considered that my old 360 was probably sold at a loss, knowing I'd buy LIVE and all the games they take a cut/license fee off of, but that makes complete sense to me

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This cycle is different. Prices have increased for both Sony and Microsoft’s consoles and no higher efficiency versions have been released (ala the PS3, X360).
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Sony released the PS5 Slim earlier this cycle.
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Isn’t PS5 Pro a higher efficiency version?
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No, it's a more powerful version.
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