Selling a console at loss or profit is entirely market driven. You could have an X1 or PS4 encrusted with gold and diamonds, but if nobody wants to pay more than $1,000 for it, then it'll sell for $1,000. If the loss is too big, the product will be discontinued.
Nintendo always seems to sell console sand handhelds at a profit, with exception of Wii U where a Nintendo exec said it would breakeven if they sold a console with a game.
A console maker selling a console for a loss or breakeven for sake of building a user base to get future software sales is true, but really just a political answer. The actual reason is because MS, Nintendo and Sony would sell crap all if they jacked up the wholesale price to make lots of money and then the retailer jacked up the price so they could make 20-30% margin. At the end of the day, that $400-500 console would be $700, $800 or $900..... PC territory and hardly anyone would buy it.
Nintendo always seems to sell console sand handhelds at a profit, with exception of Wii U where a Nintendo exec said it would breakeven if they sold a console with a game.
A console maker selling a console for a loss or breakeven for sake of building a user base to get future software sales is true, but really just a political answer. The actual reason is because MS, Nintendo and Sony would sell crap all if they jacked up the wholesale price to make lots of money and then the retailer jacked up the price so they could make 20-30% margin. At the end of the day, that $400-500 console would be $700, $800 or $900..... PC territory and hardly anyone would buy it.