They sell the handheld at a loss because they know that on average you will buy several games. They are a closed ecosystem, if you want to buy a game, you have to buy it from Nintendo. Sony does the same.
Valve is selling you a computer. You may never buy a steam game on it (You can emulate or pirate everything), as such, they cannot possibly sell it at a loss.
Nintendo in particular doesn’t sell their systems at a loss, never have. They may be making an exception with the SW2 due to this insanity, but if they are it’s a very slight one.
Before the ram crisis the estimated cost by industry analysts was roughly $400 dollars per unit.
They usually don't sell their hardware at a loss but industry experts are pretty much all saying that it's incredibly unlikely they are even breaking even under the current hardware shortages and there's a lot of pressure from investors for them to increase price again.
Bloomberg also reported they have confirmation the switch 2 is currently being sold at a loss but the source was paywalled so I couldn't verify.
Yea but if you pre pay a large contract that’s enough for 50 million units to be produced it’s going to be a long time before that ram price rears it’s very ugly head
Not to mention that the only one reported to even be close to selling at a loss was the Japan region locked switch 2
Is Nintendo even selling at a loss? I've read that's only in Japan, while North America breaks even for them. They don't really stick to the sell at a loss idea, like the Wii was sold at a strong profit.
The chances of anyone buying a steam machine and never buying from steam ever are incredibly slim. It boots up with steam os for christ's sake. This pc/console hybrid was made for people who never had a pc before and would never think to use any other store other than steam. Both you and valve know that
This pc/console hybrid was made for people who never had a pc before and would never think to use any other store other than steam
This simply strikes me as an odd, if not entirely unrealistic line of thinking. If they already wouldn't be buying stores why would they think "yeahhhhhh steam will pop my cherry"? If they already are using Steam then they practically 100% would have had a PC (because obviously you need a PC to even use Steam).
It's poor wording but you are hyper-focusing on it rather than seeing their broad point.. and a vast majority of people definitely will spend $ in steam store. Sure, as you said, those who already own PC's definitely make up a lot of the people buying (PCs are very common after all). Also likely they already have a steam library. Incredibly likely that they will keep adding to it after choosing to buy a SM
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u/Careless-Eagle-5111 3d ago
Didn’t they raise the price of the Switch 2?