Quote:
Originally Posted by captainff
so, not selling 400,000 is REDUCING their actual loss.
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How is that working? Say (for easy maths only) if they make it for £10, and sell it for £5. There are 400,000 sat in shops over the land, already made.
If they sold all million of them.
1,000,000 x (10-5) = £5,000,000 loss
However, they haven't. They've sold 600,000, but there are 400,000 that have been made, and not sold.
600,000 x (10-5) = £3,000,000
400,000 x 10 = £4,000,000
£3,000,000 + £4,000,000 = £7,000,000 loss
Although they are selling the PS3 at a loss, as soon as the machine is made, it is possible to recoup some of the loss. By not selling 400,000, they're not reducing their loss. On the contrary
That's what I believe anyway
