Underproducing seems very silly, at least for Sony and Microsoft. A lot of the value is in the network—playing with friends. Nintendo may well be a different story, especially since their model is more single player focused and their profit (i think) is relatively more concentrated in hardware sales.
In the past, there was always talk of the consoles being sold at a loss. I’m sure that is very near the case still, especially now that they have people paying yearly subscriptions for online play. There is no reason to be hemorrhaging users when the $ is in the ecosystem
Underproducing seems very silly, at least for Sony and Microsoft. A lot of the value is in the network—playing with friends. Nintendo may well be a different story, especially since their model is more single player focused and their profit (i think) is relatively more concentrated in hardware sales.
In the past, there was always talk of the consoles being sold at a loss. I’m sure that is very near the case still, especially now that they have people paying yearly subscriptions for online play. There is no reason to be hemorrhaging users when the $ is in the ecosystem