this post was submitted on 13 Mar 2024
71 points (88.2% liked)

Games

16948 readers
307 users here now

Video game news oriented community. No NanoUFO is not a bot :)

Posts.

  1. News oriented content (general reviews, previews or retrospectives allowed).
  2. Broad discussion posts (preferably not only about a specific game).
  3. No humor/memes etc..
  4. No affiliate links
  5. No advertising.
  6. No clickbait, editorialized, sensational titles. State the game in question in the title. No all caps.
  7. No self promotion.
  8. No duplicate posts, newer post will be deleted unless there is more discussion in one of the posts.
  9. No politics.

Comments.

  1. No personal attacks.
  2. Obey instance rules.
  3. No low effort comments(one or two words, emoji etc..)
  4. Please use spoiler tags for spoilers.

My goal is just to have a community where people can go and see what new game news is out for the day and comment on it.

Other communities:

Beehaw.org gaming

Lemmy.ml gaming

lemmy.ca pcgaming

founded 2 years ago
MODERATORS
nanoUFO@sh.itjust.works
71
Former Xbox boss Peter Moore says Gen Z may reject new consoles in favor of smartphones and PCs (www.pcgamer.com)
submitted 9 months ago by nanoUFO@sh.itjust.works to c/games@sh.itjust.works
72 comments fedilink hide all child comments
you are viewing a single comment's thread
view the rest of the comments
[–] nanoUFO@sh.itjust.works 4 points 9 months ago (1 children)

Can you build something like that for the same price as a higher end console? These consoles are designed to be loss leaders so it's hard to beat if you just focus on the hardware price.

[–] Diplomjodler@feddit.de 1 points 9 months ago (1 children)

Yes you can. You can build a PC with a RX7600 CPU for about $600. That's about in the same performance ballpark as a PS5. If you mass produce those and trim down some features, you'll be able to hit $500. And you won't have to pay the Microsoft tax. Sadly, this is also why it's not happening. I'm 100% sure MS are furiously working behind the scenes to prevent anyone from coming out with a system like this.

[–] tal@lemmy.today 4 points 9 months ago* (last edited 9 months ago)

Though, caveat, the PS5 has been out for a few years. At the time it was introduced, I imagine it would have been more competitive.

Also, I don't think that the term @nanoUFO@sh.itjust.works is looking for is "loss leader". I believe that he's referring to the fact that the console is sold at a loss, while the console vendor -- who has monopoly control over the platform -- forces game prices up and extracts some of the money that game developers make. That's a different pricing strategy from use of a "loss leader" albeit with certain similarities; in the "loss leader" strategy, purchase of the sold-below-cost item isn't normally tied directly to sale of other products. I'd call this the razor-and-blades pricing strategy:

googles

Yeah. Wikipedia even uses console video game pricing as an explicit example in the first paragraph, including mentioning the distinction from a loss-leader strategy.

https://en.wikipedia.org/wiki/Razor_and_blades_model

The razor and blades business model[1] is a business model in which one item is sold at a low price (or given away for free) in order to increase sales of a complementary good, such as consumable supplies. It is different from loss leader marketing and free sample marketing, which do not depend on complementary products or services. Common examples of the razor and blades model include inkjet printers whose ink cartridges are significantly marked up in price, coffee machines that use single-use coffee pods, electric toothbrushes, and video game consoles which require additional purchases to obtain accessories and software not included in the original package.[1]