Linked by Thom Holwerda on Mon 29th Mar 2010 12:59 UTC, submitted by NiceGuyEddie
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Member since:
2006-01-26
Just to clarify - this was the way it worked for initially, and for several years thereafter. I believe this "problem" has mostly been resolved with cheaper parts and manufacturing costs now.
The idea was probably to lose money on each console initially, gain market share, and then make up for it in game licensing and peripherals later.
I still doubt they really consider console sales to be a huge benefit to their bottom line, it's really all about the games.