Comment by bryanlarsen
3 months ago
You're listing the losers in the market, the ones that had to drop prices to make sales. The real volume sellers weren't generally sold at a loss. Most Nintendo consoles were never sold at a loss. Sony often sold at a loss in the first year or so, but their redesigns made them profitable, and the vast majority of sales happened after redesigns. Moore's law was responsible for a large portion of the profits from hardware sales.
Okay. That doesn't conflict with their point. "No one had to sell at a loss... Except every non-market leader" only proves their point.
>, but their redesigns made them profitable
No one says consoles always sell at a loss. They are sold over 6-8 years and price drops are pretty conservative (until last gen where they ceased to be). Every conse eventually becomes profitable, but not in the years where they sell the most.
> but not in the years where they sell the most.
Nope. Take 1 example, the PS3. It lost money in 2007 & 2008, but became profitable in 2009. They sold 16 million PS3's in 2007 and 2008 out of a total 87 million. So approximately 20% of PS3's were sold at a loss.
And the PS3 is perhaps the console that was sold at the biggest loss at the beginning due to the horrendously expensive Cell chip.
It's kind of moot, anyways. The discussion is about the consoles of 2026 competing against Steam Machine. The PS5, Xbox Series X|S and Switch 2 are all currently being sold for positive margin.
The ps3 was certainly a unique case, because despite selling at a loss it still wasn't a competitive price. The infamous "599 USD" now translates to 950 dollars today, so that really shows you how utterly expensive it was (when the PS5 pro just needed to price hike to $800).so it coming down in price for consumers and manufacturers helped it immensely.
But I do believe that was a unique case. Consoles don't typically "come back" later in life. The vita later on didn't. The Wii U and Xbox one didn't. The dreamcast sure didn't. Sony's big turnaround should be praised, but not accepted as a norm of business.
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