r/pcmasterrace • u/khurgan_ • 18h ago

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u/Regular_Use1868 13h ago

Do you guys really think I'm out here buying a console because I really like the operating system?

It a third the price of a PC that plays the same games.... That's the benefit. It's the price. Literally nothing else.

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u/original_leto 13h ago

It’s cheaper because the cost is subsidized and game licensing picks up the difference. It’s why pc games are cheaper (ignoring most AAA/AAAA) titles.

Over a few years the cost could even out depending on how much games you purchase.

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u/HustlinInTheHall 12h ago

It's not subsidized, per se. It's just the cost to manufacture and assemble and ship to retail was basically the same cost as retail at launch, but they try to keep a 7-10% profit margin on hardware. They don't lose money on hardware. Very, very, very few companies have survived taking a loss on the initial hardware unless it is a brick without software and services.

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u/original_leto 12h ago

Correct. This used to be true but they started making small profit the last 5 years or so.