Businesses sell things for a loss all the time, it’s never out of the goodness of their hearts. It’s a strategy to gain market share or to sell other products for a higher margin. Every supermarket you’ve ever been to has products for sale at a loss. Doesn’t make it a good deal for the customer either, just an accounting reality.
As someone who works in retail, even our best sales at our store will still make us around a 10% profit. Our normal GP for items sits around 30% to 40%, so while it is less than that we almost never actually sell things for a real loss.
Yeah but this isn’t really the same as the Costco hot dog. It’s a product that’s more expensive than the alternatives (though they don’t have track pads) and steam is the defacto pc gaming software. Other massive companies can barely compete and have to do stuff like epic where they give games out for free (exactly the kind of tactic you’re talking about). My sarcastic comment about the kindness of their heart is because I personally can’t see another reason to do that. That’s why I asked for any evidence - an interview, a tweet from someone who would know, an article, anything other than a hunch.
Yes but valve already has a monopoly on the PC gaming market. Usually companies sell things at a loss to attract you to them so you buy other things while you get the good deal.
In valve’s case, we’re already in the store buying their games. There’s no reason for them to sell it at a loss, because it won’t attract people to steam.
Theres nobody out there saying “wow I would be a PC gamer playing on steam if I had a steam specific controller.”
Maybe that’s the case for the steam machines and steam frame coming up, but I kinda doubt it.
Businesses sell things for a loss all the time, it’s never out of the goodness of their hearts. It’s a strategy to gain market share or to sell other products for a higher margin. Every supermarket you’ve ever been to has products for sale at a loss. Doesn’t make it a good deal for the customer either, just an accounting reality.
As someone who works in retail, even our best sales at our store will still make us around a 10% profit. Our normal GP for items sits around 30% to 40%, so while it is less than that we almost never actually sell things for a real loss.
So… no evidence?
Yeah but this isn’t really the same as the Costco hot dog. It’s a product that’s more expensive than the alternatives (though they don’t have track pads) and steam is the defacto pc gaming software. Other massive companies can barely compete and have to do stuff like epic where they give games out for free (exactly the kind of tactic you’re talking about). My sarcastic comment about the kindness of their heart is because I personally can’t see another reason to do that. That’s why I asked for any evidence - an interview, a tweet from someone who would know, an article, anything other than a hunch.
Exactly you can’t personally see it so i explained it to you lol
Yes but valve already has a monopoly on the PC gaming market. Usually companies sell things at a loss to attract you to them so you buy other things while you get the good deal.
In valve’s case, we’re already in the store buying their games. There’s no reason for them to sell it at a loss, because it won’t attract people to steam.
Theres nobody out there saying “wow I would be a PC gamer playing on steam if I had a steam specific controller.”
Maybe that’s the case for the steam machines and steam frame coming up, but I kinda doubt it.
They could’ve sold it at twice the price I’d still would’ve bought one tho?