14th October 2003, 2:54 PM
And don't be surprised if Sony cuts the price and sells the PSP at a hefty loss. If that $99 PS2 rumor comes to pass, it's the same strategy, and it's quite effective. The big money comes from software.
For perspective, a PS2 Greatest Hits title gets Sony about 150% of the profit a PS2 console sale does. With normal titles it's nearly 400%. It's the same with all companies. Console sales alone are worth nothing financially, it's what you sell with them that makes the cashola flow. If Sony can put together a great lineup, they might very well be able to afford to eat some PSP losses.
For perspective, a PS2 Greatest Hits title gets Sony about 150% of the profit a PS2 console sale does. With normal titles it's nearly 400%. It's the same with all companies. Console sales alone are worth nothing financially, it's what you sell with them that makes the cashola flow. If Sony can put together a great lineup, they might very well be able to afford to eat some PSP losses.
YOU CANNOT HIDE FOREVER
WE STAND AT THE DOOR
WE STAND AT THE DOOR