Quote:
Originally Posted by jamesdmanley
pretty much all video game consoles are sold at a loss. the profits are made back in licensing fees for the software. most printers are sold at a loss and the profits made back in the ink. this is far from an unsustainable business model
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But one which only works with "closed" systems. Buy a PS3 and you can ONLY buy games from Sony, so they profit from every game sold. You can't afford to lose money on something like the Reader, because the buyer may well not spend one penny on books from Sony's bookstore!