>>11793671Yeah this is what we mean by their business model being completely unsalvageable. The stores and the manufacturers both making money doesn't sound crazy in principle for a consumer electronic but it just wasn't viable for disk-based game consoles for 2 reasons:
1) While cutting edge electronics are often expensive this was pushing it even by those standards. Yes, computers with CD-rom drives cost that much or more but they were versatile. They played games *and* did everything else computers normally did. The 3DO, despite its pretensions at being a multimedia machine, was more or less a dedicated game console. No one was buying one to use it for CD-rom Encyclopedias. And for a dedicated device it was outrageously expensive. The classic consoles never cost that much. Stereo receivers and six-disk CD changers and discmans and VCRS and camcorders didn't cost that much.
The 3DO probably cost as much or more than the television you would play it on. For a purely recreational device that did one thing it was too much to ask. If people were willing to spend that much on a game console the Neo Geo would have sold like hotcakes because unlike the 3DO, it was actually good. The tech outpaced the price point consumers were willing to meet. But that's what it had to cost or else people lost money on it.
2) Their strategy didn't take into account the uniquely synergistic relationship between hardware and software in the game industry. Consoles have exclusives. Most electronics don't. You didn't buy a Sony Walkman because it played tapes the other ones didn't. But you bought the Sony playstation because it had Final Fantasy VII and the N64 didn't.
By making hardware and software profitability separate considerations the 3DO broke that synergy. The hardware manufacturers couldn't sell at a loss to grow the user base and encourage software sales because they weren't profiting from software sales. But as we know now that's where the money is