3DO treated their console like any classical consumer electronic product, some sort of VHS VCR of the videogaming era.one said:IIRC the software license fee for 3DO was dirt cheap, I wonder how they attempted to make money.
It was an open format with a cheap hardware licensing fee, and, IIRC, the consortium was also giving a part of the software fees to the harware manufacturer based on their marketshare (On 3DO HW sales).
The idea was that the hardware was never sold at loss (Like any other CE product) meaning that potentially all CE major actors could be interested in entering the very profitable videogame sector, since it was "risk free".
About the high price, they counted on the fact that, with time, the prices will go down naturally (Like the VCRs, once again), and therefore make the platform mainstream, and no more high-end.
Of course, market reality and technology advancements, killed the idea quite fast.