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Originally Posted by Trumpcard
Microsoft has been taking a loss on the price of them since they started making them to try and hone in on PS/2's niche...
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Yup yup. Sony sells their machines at a loss, too. It is SOP (standard operating procedure). They count on selling/licensing the games to make money.
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Originally Posted by [url=http://rss.com.com/2009-1043-5113192.html?tag=sr.toc
news.com[/url]]Sony learned the pitfalls of convergence three years ago, when it launched PlayStation 2, which plays DVDs as well as games. PS2 promptly became the cheapest DVD player in Japan, bought by many consumers who used it mostly as a movie player.
"Sony lost of a lot of money on those initial customers, because they didn't buy many games," IDC's Olhava said. "If you give people reasons to buy a console besides games, that starts to destroy the whole business model."
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