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?
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
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
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).