Originally Posted by
ArucardX
Basic economics. They sell fairly close to the price it actually costs to produce, in order to sell many. Then they have a better chance of selling more and with the more they sell up goes the profit. They don't technically LOSE money, every business HAS to invest money into a product and has to spend money out of their pockets to produce it before they can EVEN OUT their gains and then succeed in actually profitting. So whoever tells you that they actually lose money with every one they sell is wrong. They LOSE money with every one they make and still have deficit until they sell as many as they have made. That's why the PS2 was at a deficit for 5 months. I could be going out on a limb here, but that's probably the reason products get cheaper, it's because the company has already exceeded their investment and in order to continue to sell more the new strategy is to sell even cheaper therefore gaining more profit.
To say they LOSE money with each one they sell is purely moronic unless i'm not grasping something here. If they sold a product under the price of the cost of production THAT would cause them to lose money and no matter how many they sold there's no way to recover from selling LESS than what it costs to make unless they bumped the price up, but have you ever really seen the price of a game or a console go up? (It usually goes down doesn't it?) So why would they sell LESS than what it costs to make? I'm pretty sure it's all just a deficit until their sales match their production, not a LOSS each product sold.
Please correct me if I'm wrong.
