Sorry to double post, but I just realized I worded something in my first post poorly, and I can't edit the one I just made.

The markup in the games is what all the companies rely on for their profits, and it makes up for initial losses as long as they've gotten a large enough user base for their platform allowing them to sell large quantities of games. Like I said, this was the problem Sega had with Saturn and Dreamcast. Which is too bad, because Dreamcast actually started to become quite popular at the end of its life. =\

A+ Certified PC Tech Guy/Seitentaisei