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Originally Posted by Solicitous
I feel companies such as B&N and Amazon will make next to zero profit on the devices and all their ebook income will be derived from content.
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I agree that it is likely, and it can be done.
If we assume that not all the customers reach a point where they refuse to buy from their stores because of DRM, then content can definitely overcome the loss on devices.
Console manufacturers have been doing it for ages. They sell the actual consoles at a loss (per unit), but make up the difference with the sales of video games and accessories. And, in the case of Xbox Live, subscription fees to their online content.