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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.




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