Re:profit made on game titles (Score 1)

Lose leader isn't a bad business model. Lots of companies outside the gaming industry do it. The example in every business class is razors. Razor companies sell you the original razor with a few blades at cost or sometimes at a lose, although I believe it is illegal to sell products for less than they cost to produce. They then charge you an arm and a leg for the razor blade themselves because you are essentially locked into their proprietary technology. It is the same with camera companies that sell you a camera cheap but charge a lot of film, Polaroid was an excellent example here. Printer makers are the same. It costs about 2 dollars for printer companies to make and ink cartridge but they charge 20+. The printers are sold for hundreds of dollars. Tomshardware had an article on cost per page for printing on ink jet printers and they stated that printers that cost less to buy actually cost more in the long run because the per page cost of printing is much higher. Printer cartridges are HP's highest profit items, and a large percentage of their revenues.