In this episode of Game Changers, Jackson Vaughan breaks down the evolution of console business models—from the Magnavox Odyssey’s one-time hardware sale in the 1970s to today’s mix of subscriptions, digital storefronts, and cloud gaming. Along the way, we explore how the introduction of game cartridges sparked the rise of third-party developers, how Nintendo’s 30% licensing fee shaped the modern industry, and why console makers began selling hardware at a loss to win long-term loyalty.

With Xbox, PlayStation, and Nintendo now deploying distinct strategies—cloud-first, ecosystem-focused, or exclusive-driven—the business of consoles is more complex than ever. What does the future hold? Portability, mobile connectivity, and new monetization models may be just the beginning.

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