The Economist Looks At The Console Industry

Fromeo writes "The Economist is running an interesting article discussing the state of the console industry, along with their usual interesting graph, showing the cycle that the industry follows."

Comments

Hardware vs. software

[wpmegee]

Most console companies routinely lose money on the actual hardware. To wit: Microsoft loses at least $100 on each console it sells .

Also, the actual games themselves don't cost more than a couple dollars each to manufacture (even on DVD), and that's including the box, instructions, etc. So let's see, MS makes $40~ on each game, so it must sell at least 2-3 games to make the X-Box profitable. And selling a remote for $30 (to play DVDs) doesn't hurt either.