Comment on Steam Deck is out of stock in the US?
dukemirage@lemmy.world 2 weeks agoSorry not my native language, I mean hoarding money is not the reason why they have huge amounts of capital.
Comment on Steam Deck is out of stock in the US?
dukemirage@lemmy.world 2 weeks agoSorry not my native language, I mean hoarding money is not the reason why they have huge amounts of capital.
atrielienz@lemmy.world 2 weeks ago
Ok. So explain where the investment is. What does “eating the loss” do for them in the long term? How do they recoup that loss? Loss leaders (the Costco hotdog, PlayStation consoles etc) are used by businesses as a way to get people to buy into their other products that do make healthy profits. Costco’s hotdog gets people in the door, and those people buy other stuff because “while we’re here”. There’s a psychology to that strategy.
Sony uses sales of the PlayStation consoles to get people locked into their platform where they spend money on games, and skins, and micro transactions etc. People used the PlayStation to play Blu-ray (also a Sony property), and DVDs, and stream content like movies, and music. This nets them healthy profits while selling the hardware at or below cost.
Nintendo is said to do the same thing with the Switch/Switch 2. So there’s a cost to benefit ratio equation going on in each case.
What is the cost to benefit equation for Valve selling the Steam Deck at a loss? Their e-shop doesn’t depend on the hardware to sell games. They aren’t locking people into Steam in a way that’s meaningful because other hardware exists with the same or better ability to play all the same games. The Steam e-shop doesn’t require you to only play games on the Steam Deck.
So that’s where you lose me.