dj LiTh wrote on Oct 5, 2013, 07:15: Well first off the market for titan's and 780's isnt really all that big. Second they do have to buy in bulk to get discounts.
Losing money making hardware comes from large scale manufacturing costs typically. The market for a box with a Titan is not huge but it's very, very profitable. They don't even appear to be selling the hardware themselves, it will likely just be retail partnerships with OEMs and third parties. Your other prediction doesn't appear to be based on anything at all.
If all else fails and the living room venture is a bust then we get an alternative gaming operating system, I don't really see a loss for the consumer here. This certainly won't put Valve out of business either, those concerns are pretty dubious given that they are not really making any hardware aside from a controller.