Originally Posted by lilac_jive
I was wondering that. I know Sony actually takes a loss on the PS3s, knowing that they'll make it up in games (actually most game consoles do, except for the Wii, which makes a profit). I doubt for the Reader they'd take a loss though, too much of a gamble.
There is a big difference here though. To publish a Playstation game a game publisher has to license it with Sony and Sony gets some type of revenue sharing on it. And, yes they sell their own games too.
Were as with eBooks... especially since they added support for Adobe DRM there is no requirement that a publisher has to pay them anything.
I think they just make money on each reader and wanted to get into the market early to establish market share. I think they want these thing to become as popular as iPods and cell phones. (which we know won't happen at that level)
Face it, pretty much everyone that has an eInk book reader at this point in the cycle is an early adopter or a pioneer. Remember it is the pioneers that get arrows in their backs.