Linked by Thom Holwerda on Tue 14th Aug 2012 15:36 UTC
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Member since:
2006-01-25
Its kind of different when everyone in the market is doing it too... Microsoft was losing something around $60 per sale originally, where as Sony was losing around $200. Nintendo actually made a small profit, and their strategy worked for a while (cheap low-performance hardware with innovative controllers) but soon ran out of steam and everyone else took their key advantage away. Now Wiis are just cheap...
Anyway, none of them were competing with a company who routinely operates on a 60% gross margin... Apple is pricing proof, they have demonstrated that repeatedly. You can't price yourself into competition with them - their customers don't care about you having a better price. You have to have a better product.
Maybe the surface is a better product, but if this rumor is true it isn't priced like it is...