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robertlagranttoday at 2:27 PM3 repliesview on HN

That's one thing. The other is price. Consoles can be sold at a loss, particularly early in their 10-year cycle, when early on the loss is high, but close to the end of the cycle the loss is minimal, and so they appear much cheaper.


Replies

nemomarxtoday at 2:53 PM

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?

dpoloncsaktoday at 2:29 PM

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

Tsiklontoday at 2:54 PM

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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