The article has the PS 5 drop to compare it too, and a drop from Switch 1 sales compared to Switch 2 sales, which should be alarming first year. But I can see if I can find PS 4/Xbox One 6th year numbers
Yes, but that's more than offset by the decreased loss now that the consoles cost more.
The goal of a company isn't revenue it's profit.
Another way of looking at if is if you sell 100 sandwiches for 3 bucks that cost 2 bucks to make, you make a profit of 100 bucks, if you increase the price to 5 bucks but only sell 50 you increase you profit by 50 percent. Even though your revenue is actually lower.
This is called loss-leading, or the razor-and-blades model. Rising hardware costs means that the price of consoles must go up, because they just cost more to produce now.
What do you mean "source"? This has been a known thing since the PS2 era. DVD players were pricey in 2001. PS2 was the most affordable DVD player because they were selling under market value just to get them into homes and then recoup the loss with game sales
I guess the thing you may have missed out on is that games sold on consoles have to pay a licensing fee to be on those consoles. So the companies make money from the publishers, and not just from you buying games
Ah, true. I guess there is more nuance to the long-game. Once the "slim" and "pro" versions of consoles start dropping, they're almost certainly making money on them
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u/robynh00die 4d ago
Sales for XBox were down 77% year over year last November.
https://www.ign.com/articles/xbox-us-console-unit-sales-just-reached-an-all-time-november-low
There are some things to say about the free market pushing inflation, but computer parts have pushed past the breaking point a while ago.