Support NeoGAF

[cormack12]

Instead of maintaining and investing in their own 1st party studio's, cutting 3rd party exclusivity deals or making acquisitions, what if a new kid on the block decided to just spend their money on subsidising all major 3rd party titles so they retailed at £30 / $40.

For the sake of argument, the difference in device power and device price is negligible compared to competitors.

 

[Ozriel]

Instead of maintaining and investing in their own 1st party studio's, cutting 3rd party exclusivity deals or making acquisitions, what if a new kid on the block decided to just spend their money on subsidising all major 3rd party titles so they retailed at £30 / $40.

For the sake of argument, the difference in device power and device price is negligible compared to competitors.

That would certainly make that console more attractive to buyers, but they make most of the money from software sales, not hardware.

 

[deriks]

See Sega nowadays. They're doing really great

 

[cash_longfellow]

I want to comment, but…

 

[lh032]

that would cost alot ?

 

[Fbh]

As someone mentioned above, consoles make a lot of their money from the cut they get from third party sales.
This would basically turn the business model around, now you'd have to pay devs whenever they sell a game.
They'd probably have to make the console way more expensive because the hardware would have to generate most of the profit.

And that point we are basically entering PC terrotiry (more expensive up front, cheaper in the long run) except with none of the other benefirs like mods, third party stores, controller flexibility, emulation, awesome backwards and forward compatibility, etc.

 

[LazyParrot]

Software is where console makers actually make their money. Losing an additional 20-30 bucks on every copy sold would be disastrous for them.

 

[cormack12]

Software is where console makers actually make their money. Losing an additional 20-30 bucks on every copy sold would be disastrous for them.

 

[Skifi28]

"Provide insane value for the user while losing money for years hoping you eventually kill the competition and then set whatever prices you want."


Now I could have sworn I've seen this failed business model somewhere before.

 

[BennyBlanco]

EGS is constantly giving out free games and has been for years and they still can’t get a foothold

 

[Kdad]

I'm confused.

So say cost of manufacture is ... 450 for a modern machine.
But, I also have to cover say $30 per game sold
So, the avg user buys 15 games over the lifespan of the machine.
So now, as a manufacturer, I have to sell the machine for 450 + 450 = 900$ with no cap protection since a user might buy more than 15 games...its an endless monetary risk.
And I make money just on my first party games....where am I making any money to FUND my first party games...every one of them is a money making masterpiece?

Game company execs would make more money just running corporate OnlyFans accounts.

 

[Unknown Soldier]

LOL stop giving Microsoft new ideas

 

[Quasicat]

I’m wondering this would lower the perceived value of the game. Perhaps it’s the idea that since the game is $20 to $30 cheaper that it’s not a good game compared to others. I don’t know how true this is, but a former student of mine, who works at an Apple Store, told me that Apple does this through a type of price control.