Talk:Razor-and-blades model
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Video game consoles?
[edit]I don't think that is a good fit in this situation. It is no different than computers/software, TVs/movies, or sound systems/music and no one would say they are using the 'Razor and blades model'. The source given in the summery, The Razor's Edge by Richard Martin, doesn't even mention video games. That said, it is three pages long and only the first page appears to have been archived. Maybe it should be replaced with a complete source? Later in this article it specifically mentions Atari but their consoles were never sold at a loss. An article in InfoWorld from Nov 28, 1983 says it cost about $40 to make a 2600 and it sold for $125. At their cheapest they were $50 and that was for a cheaper, cost reduced version of the system. This article then goes on to talk about Sony and Microsoft but the articles referenced make no mention of the 'razor and blades model', just that they were initially being sold at a loss. Most other companies never sold their systems at a loss. As costs came down later in the systems life they often became profitable anyway (well, not for Microsoft, which is why they are transiting away from making consoles). Interestingly, the Wikipedia article for 'loss leader' also mentions video game consoles. Can they be both loss leaders and razor and blades models at the same time? Lando242 (talk) 07:50, 7 March 2026 (UTC)