Not being a gamer, from what I understand, MS makes money on the sale of the game, and while games are being played. If you want a certain upgrade in a game, you have the option of working for it, or paying for it. Sometimes the only choice is to pay for it. I’m sure there are some gamers out there who would be happy to enlighten me.
Most people would be amazed to find out a lot of people really think this way.
My evil sister in law asked (college grad!) how come we just don’t print more money.“Schools”, just don’t teach basic economics any more until you’re taking that course.
It is the same story as with cell phones and printers. The phone is cheap if not free but they make a killing off the air time. Printers are very cheap but the ink refills can cost more than the printer did in the first place. They are willing to lose $50 per machine if they can make it up 10 fold in selling games for it.
As a side note, MS doesn’t make most of the games, or the money from them, while they do get money from developers buying their software to make a game for the console, they make more money from the unit and it’s accessories than games for the most part.
Also, in every machine before the WiiU, Nintendo made a small profit with every system sold. So even if the console flopped, Nintendo still made money from the store buying it.
The reason the WiiU is different is because of the touch screen controller, so Nintendo is losing money on every console like everyone else.
sbchamp over 10 years ago
“Truckapillar! Fitty nine ninety five!”-Billy“You know that only costs fifteen bucks to make?” -Josh
neverenoughgold over 10 years ago
He’ll be running for Congress some day, and unfortunately, he will get elected!
tammyspeakslife Premium Member over 10 years ago
The company makes up for it in game sales
ossiningaling over 10 years ago
They make it up in volume.
Doctor11 over 10 years ago
Peter, you should really know better than to say stuff like that around Jason.
Jeff0811 over 10 years ago
Not being a gamer, from what I understand, MS makes money on the sale of the game, and while games are being played. If you want a certain upgrade in a game, you have the option of working for it, or paying for it. Sometimes the only choice is to pay for it. I’m sure there are some gamers out there who would be happy to enlighten me.
GeorgeJohnson over 10 years ago
Most people would be amazed to find out a lot of people really think this way.
My evil sister in law asked (college grad!) how come we just don’t print more money.“Schools”, just don’t teach basic economics any more until you’re taking that course.
fixer1967 over 10 years ago
It is the same story as with cell phones and printers. The phone is cheap if not free but they make a killing off the air time. Printers are very cheap but the ink refills can cost more than the printer did in the first place. They are willing to lose $50 per machine if they can make it up 10 fold in selling games for it.
water_moon over 10 years ago
As a side note, MS doesn’t make most of the games, or the money from them, while they do get money from developers buying their software to make a game for the console, they make more money from the unit and it’s accessories than games for the most part.
josh_bisbee over 10 years ago
Also, in every machine before the WiiU, Nintendo made a small profit with every system sold. So even if the console flopped, Nintendo still made money from the store buying it.
The reason the WiiU is different is because of the touch screen controller, so Nintendo is losing money on every console like everyone else.