 Sony's PS3 lost $250 per unit sold)in order to penetrate the market and receive royalties of software sold for their gaming console.On the other hand, even though two-sided pricing strategies generally increase total platform profits compared to traditional one-sided strategies, the actual end value of the two-sided pricing strategy is contingent on market characteristics and may not offset the costs of implementation.For example, profits of an application provider increase with the implementation of a two-sided pricing strategy of the platform provider only if the application is subsidized by the provider.