How does a game console maker make money?
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The Secret: How do console makers make money if consoles are sold near or below cost?
A cut of every game sold plus online subscriptions. Platform holders take a royalty on every game sold for their system and charge for online services, so the installed base is what matters. Source: Wikipedia – Razor and blades model (video game consoles)
Why They Stay: Why do players stay with the same console brand?
Their game library, saves and friends are there. A digital library and friends list don't transfer, so the next purchase defaults to the same ecosystem. Source: Wikipedia – Network effect
Why They Leave: When do players switch?
At a new console generation, if friends move or exclusives pull them. Generation changes are the only time switching costs reset. Exclusive games are how platforms win switchers. Source: Wikipedia – Console war