Re:Open up the market... (Score 1)

Actually most companies already do lose money on the console hardware, because, like you said, they make it up easy on game royalties. However, the only threat I can see MS posing is one of undercutting: Since they are so much larger than their possible future competitors, they can much more afford to have major losses on system and game prices in the first year or so of a console until the prices for the games/console come down. Although Nintendo, Sony, and Sega can afford to undercut each other somewhat, they just can't do it in the big way that MS could.