Re:New $250 Chromebook
by ekianjo on Friday October 19, 2012 @07:12AM
(#4673015)
This business model is not new at all. That's what video games console manufacturers (except Nintendo) have been doing for dozens of years. Selling the hardware very cheap, at no margin or even "dumping it", to make money on the software licenses. Really, Google has not invented anything.
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Re:New $250 Chromebook
by binxbolling on Friday October 19, 2012 @10:03AM
(#4673531)
Who's claiming it's new?
What do you mean "except Nintendo"? They nearly invented the practice.
All consoles use the "cheaper razors, more expensive blades" model, but there is a big difference in exactly how.
Nintendo actually prices their gaming consoles above production cost (and probably above all-in cost) AND charges huge license fees to developers (and also has a huge first party developer userbase, unlike the other companies).
Nintendo is the company who maximizes profits, Sony and Microsoft at best maximized top-line and in reality just tried to maximize market share.