With the popularity of handheld gaming on the rise, gamers have historically seen very few options with portable gaming, with only the Nintendo Switch availa...
I would bet they’re basically losing money on the $399 model, but making money on the higher spec models. No other manufacturer has been able to offer similar performance at that low price point (yet).
Cost analysis estimates I’ve seen have them also taking a small loss on 256GB units, only making a profit on 512GB units.
They didn’t have official data though, they were mostly working backwards from taking the ifixit part costs and assuming ifixit used their standard markup.
Makes sense, Gabe said in an interview that making that $399 price point was “painful”. But I guess the point is that the Deck sales drive Steam game sales.
I would bet they’re basically losing money on the $399 model, but making money on the higher spec models. No other manufacturer has been able to offer similar performance at that low price point (yet).
Cost analysis estimates I’ve seen have them also taking a small loss on 256GB units, only making a profit on 512GB units.
They didn’t have official data though, they were mostly working backwards from taking the ifixit part costs and assuming ifixit used their standard markup.
Makes sense, Gabe said in an interview that making that $399 price point was “painful”. But I guess the point is that the Deck sales drive Steam game sales.
I mean that’s pure BoM and doesn’t include costs of development or assembly.
I’d say that’s probably a fair assessment