| Most game consoles are sold at a loss, with the intent that profits will be made on the games. This is the classic razor .v. blade business model. In the days of mainframe dinosaurs, IBM supposedly sold their computers at a loss, but required you to use their punch cards/paper/et al. This insures them of a continuing revenue stream, whereas the machine sale is a one-shot deal. They got slapped down for that. This is different in that the game manufacturers don't require you to use their games, they just lock the software up in enough patents and trade secrets that no games writers can develop stuff externally without licensing the appropriate development info and signing a royalty agreement. It seems the same, but from a legal standpoint, it isn't. | |
