Mircosoft and Sony make very little to no money on selling consoles.
True.
The money they make is based of the games. It costs a developer a money to produce a game on a console, and for every copy of that game that sells, they make a small bit of money.
True. This is why console hardware has the illusion of being less expensive than PC hardware. Both Sony and Microsoft are subsidizing the hardware based on future revenue from game sales. And this is why console games are more expensive than PC games. So in the long run, console gaming ends up costing as much, or more, than PC gaming.
That money does add up when you have a game that has had success like halo or gears for the xbox you make loads of money. And i'm sure games that Mircosoft of sony attually help produce, makes more money.
thats why sony and mircosoft can sell their consoles below what it costs to manufacture.
Nintendo is a diffrent stoy with them selling their console above the manufactureing cost. They use cheep parts (when i say cheep don't get think i mean bad) and are able to make money. Thats why nintendo is still around today. Gamecube didn't do as well as the xbox 1 nor the ps2, but can still hang in and hang in well because they made a profit of of there consoles, microsoft and sony make profit of the game.
Correct. What you meant to type is "inexpensive". For example, the Wii is built with inexpensive parts and is manufactured with quality. Microsoft utilized cheap manufacturing with quality parts. The rest is history......
Brom123
Log in to comment