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They don’t even “lose money” in either scenario. They just don’t make new money.
Businesses consider those the same thing unfortunately :/
I’d argue they consider not making new money worse, losing money means tax write offs.
The argument is the suppression of titles is to control the brand. Its indirect nonsense.
I used copies of old Nintendo games and they don’t get a single cut. I don’t see them shutting down those stores that sell them. Fuck Nintendo greed.