or why Gates wouldn't want to trade places with sony right now.
Ever wonder how they make money when they subsidise the consoles so much ? It is much harder than you think. Nick, Sam - did you make Sony any money on your PS2s ? I guess they really are a money printing machine for Sony now.
http://scobleizer.com/2006/11/17/why-gates-wouldnt-trade-places-with-sony-in-console-wars/So, if you have your console for three years, you’ve probably bought the 15 games that Microsoft needed to sell to break even. What happens in the fourth year? You buy games #16, #17, #18 and Microsoft (or Sony) starts making huge profits.
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It’ll be interesting to see whether Sony can break this cycle and get more games sold per box (if Sony really is losing $300 per box it sells, it needs to see an attach rate that’s higher than Xbox to have any chance of breaking even).
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