[paulie_a]

I thought this was long ago disproven. That at very early stages yes breakeven or small loss happens. But rapidly becomes mildly profitable per unit

[gruez]

Is this as a result of how the r&d expenses are deducted against revenue, or manufacturing process improvements?

[M277]

Mostly software subscriptions, actually.. things like PS Plus, etc. On consoles, you need to pay money (subscription) to be able to play multi-player for instance (whereas on PC it's free), and games in general are more expensive compared to PC (last time I checked).