quote:
Originally posted by squall_leonhart69r
eh Race
add up the cost of the RSX processor and the Cell chip
if the rsx is based off the G70GL then it'll be around that price
heck the 6800s are over 1000 here
Competitive pricing?
"loss leader" is a very common marketing technique.
Say they sold the PS3 for a $500 loss.
Then the people would buy extra things for the console, like games, controllers, live service subscriptions, memory cards, wifi adapters, eye toys etc...
And these have a high profit margin. So they make the money back on that easily.
For a real life example of this. Game Cube retailed at a huge loss, and they still made a profit. Mobile phone networks do it, giving free phones with contracts. Printer companies do it. There is a Lexmark printer where the ink cartridge's RRP is more than the printers' RRP. So its cheaper to buy a new printer and use the free cartridge than it is to buy a new cartidge.