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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...
People had all kinds of negative nonsense to say when the Kin was introduced at a loss. Microsoft laughed to the bank on that one ........ oh wait.
Microsoft has a hit and miss history with hardware. For every Kinect there is a Zune.
Do I think they can sell subsidized surface tablets? Sure. Do I think this makes their "one interface everywhere" plan any less stupid? No. Do I think their profits and stock will take a dive from a lack of upgrades compared to previous iterations of Windows? Yes.





Member since:
2011-08-08
People had all kinds of negative nonsense to say when the Xbox 360 was introduced at a loss. Microsoft laughed to the bank on that one and all the `poo-poo`ers were left looking stupid.
I suppose the only thing left here is to watch history repeat itself.