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Joined 3 years ago
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Cake day: August 5th, 2023

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  • 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.






  • So, I don’t know what information this is based on, but I’m questioning it.

    High end gaming rigs come in pre built, for people who want that kind of warranty, or, more often in my experience, the people who own them build them. Which means they’re not super fussed about installing a different OS.

    It’s more likely that some subset of them play games that require windows (VR, some racing sims, competitive online games that require kernel level anti-cheat etc), and won’t switch because of that.

    There may be some subset of the gaming populace who wants that without the fuss, and usually they buy consoles. Computer gaming is what it is because people very often like control.

    I’m a tinkerer at heart, and one of my older brothers used to build custom gaming rigs as part of his business back in the early 2000’s. Most of my family and quite a few of my friends have been computer gamers for decades.

    I’d be willing to wager that a fair number of computer gamers aren’t bothered about the installation process of steam OS, but might be wary of limiting the games they can play using it.