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this post was submitted on 14 Feb 2024
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Consoles never really make money.
The money is in locking consumers in your ecosystem, which is why exclusives used to be a big deal. Now they'd rather their games be available to people on other consoles since they bought up too many studios
Like, Xbox wants everyone that owns a Xbox to buy COD for Xbox. But they also can't limit it to Xbox because a bunch of ps5 people would buy it if they could. So it's better to sell thru ps5 then losing all those potential customers that will never buy an Xbox.
This is only half true. They are loss leaders early in their lifecycle, but almost (looking at you PS3) always profitable 2-3 years into production due to paying down initial costs of production and efficiencies developed during production.