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To: Scumbria who wrote (121115)12/7/2000 2:37:52 PM
From: Saturn V  Respond to of 186894
 
<Sony loses lots of money on PS2 sales. They make money on game sales >

That is the infamous Gilette model. Lose money on the razor, but make up on the sales of blades.

HP also does something similar with printers. Marginally profitable printers, but obscenely profitable printer cartridges. [ The business mode will work until some one clones the HP cartridge ].

And you are right that for a while Sony will lose mucho money on PS2 sales.



To: Scumbria who wrote (121115)12/7/2000 2:37:53 PM
From: GVTucker  Respond to of 186894
 
In the interest of equal time, I thought that this was hilarious.

economist.com



To: Scumbria who wrote (121115)12/7/2000 2:48:38 PM
From: Tenchusatsu  Respond to of 186894
 
Scumbria, <Sony loses lots of money on PS2 sales. They make money on game sales.>

Uh, did I disagree with you on this point?

Yeah, Sony loses money on PS2 sales, but that loss will only last for a year or two. I'm sure when Sony first released PS1, it was a loss leader for a couple of years. These days, the cost of making a PS1 is negligible, yet Sony is still making huge bucks on the game sales.

Tenchusatsu


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