> you'd essentially be giving away hardware. It'd also be illegal dumping in most regulated free markets.
>> What does this mean?
The various consoles (ps3, orignal xbox at the very least) -- were sold at a loss (for the hardware). Now if I sell a pc at a loss, that'd be considered dumping[1].
> The various consoles (ps3, orignal xbox at the very least) -- were sold at a loss (for the hardware).
This isn't dumping at all. Cited from your citation: A standard technical definition of dumping is the act of charging a lower price for the like goods in a foreign market than one charges for the same good in a domestic market for consumption in the home market of the exporter.
The console were simply loss leaders, sold below cost in all markets with the assumption purchasing a console would result in more long term profit.
> Now if I sell a pc at a loss, that'd be considered dumping[1].
No, that would be considered poor business. If you were 100,000 PC's under cost in order to drive a competitor in a foreign market out of business that would be considered dumping.
The various consoles (ps3, orignal xbox at the very least) -- were sold at a loss (for the hardware). Now if I sell a pc at a loss, that'd be considered dumping[1].
[1] http://en.wikipedia.org/wiki/Dumping_(pricing_policy)