No more games: Amazon admits it needs content sales for Kindles to fly
October 14, 2012
Amazon makes no money on its Kindle hardware, CEO Jeff Bezos admitted to the BBC. He said that all models of Kindles, including e-readers and the more tablet-like Fire HD are a "break-even" proposition for the company, and it's counting on the content ecosystem to make the hardware line financially worthwhile. Taking lean or no profits on a content vector to reap money from the financially meatier content is not a new model, and is a specialty of Amazon's by now.
No more games: Amazon admits it needs content sales for Kindles to fly Jeff Bezos Reveals Amazon Makes No Dough On Its Hardware (Fast Company)