Editing 3DO (section)

=== Licensing model ===
The 3DO Company lacked the resources to manufacture consoles, and instead licensed the hardware to other companies for manufacturing. Trip Hawkins recounted that they approached every electronics manufacturer, but that their chief targets were [[Sony]] and Matsushita (then-owner of [[Panasonic]]),<ref name="Intro - WSJ" /> the two largest consumer electronics companies in the world.<ref name=Retro122/> However, Sony had already begun development on their own console, the [[PlayStation (console)|PlayStation]], and ultimately decided to continue work on it rather than sign with 3DO.<ref name=Retro122/> According to former Sega CEO [[Tom Kalinske]], The 3DO Company was engaged in very serious talks for Sega to become involved with the 3DO, though Sega ultimately passed on it due to concerns over cost.<ref>{{cite web|url=http://revrob.com/sci-tech/264-tom-kalinske-talks-about-his-time-overseeing-sega-as-its-ceo-in-the-90s-reveals-that-sega-passed-on-virtual-boy-technology-considered-releasing-3do|title=Tom Kalinske Talks About His Time Overseeing Sega As Its CEO In the 90s; Reveals That Sega Passed On Virtual Boy Technology, Considered Releasing 3DO|last1=Vinciguerra|first1=Robert|website=The Rev. Rob Times|archive-url=https://web.archive.org/web/20151025155922/http://revrob.com/sci-tech/264-tom-kalinske-talks-about-his-time-overseeing-sega-as-its-ceo-in-the-90s-reveals-that-sega-passed-on-virtual-boy-technology-considered-releasing-3do|archive-date=October 25, 2015|access-date=21 September 2015}}</ref> In contrast, Matsushita agreed to partner with the company as it was seeking reassurance for its investment in [[MCA Inc.]], which owned [[Universal Pictures]] and had yet to see substantial success since its acquisition by Matsushita in 1990.<ref name="Intro - WSJ" /> Matsushita launched the 3DO with its Panasonic FZ-1 model in 1993, though Goldstar (now [[LG]]) and Sanyo would later manufacture the 3DO as well. Companies who obtained the hardware license but never actually sold 3DO units include [[Samsung]],<ref>{{cite magazine |url=https://retrocdn.net/images/b/bf/GamePro_US_059.pdf |archive-url=https://ghostarchive.org/archive/20221009/https://retrocdn.net/images/b/bf/GamePro_US_059.pdf |archive-date=2022-10-09 |url-status=live|title=New 3DO Hardware Deals |date=June 1994|magazine=[[GamePro]]|publisher=[[International Data Group|IDG]]|issue=59 |page=184}}</ref> [[Toshiba]],<ref name=GPro60>{{cite magazine|url=https://retrocdn.net/index.php?title=File%3AGamePro_US_060.pdf&page=172|title=3DO News|date=July 1994|magazine=[[GamePro]]|publisher=[[International Data Group|IDG]]|issue=60|page=170|access-date=April 2, 2020|archive-date=September 20, 2020|archive-url=https://web.archive.org/web/20200920220016/https://retrocdn.net/index.php?title=File%3AGamePro_US_060.pdf&page=172|url-status=live}}</ref> and [[AT&T Corporation|AT&T]], who went so far as to build prototype AT&T 3DO units and display them at the January 1994 [[Consumer Electronics Show]].<ref>{{cite magazine|date=April 1994|title=No Business Like Show Business|url=https://archive.org/details/GamePro_Issue_057_April_1994/page/n9/mode/2up |magazine=[[GamePro]]|publisher=[[International Data Group|IDG]]|issue=57|page=8}}</ref>

Licensing to independent manufacturers made the system extremely expensive. The manufacturers had to make a profit on the hardware itself, whereas most major game console manufacturers, such as Sega and Sony, sold their systems [[Razor and blades model|at a loss]], with expectations of making up for the loss with software sales. The 3DO was priced at {{US$|699}},<ref>{{Cite news|last=Nichols|first=Peter|url=https://www.nytimes.com/1993/12/03/arts/home-video-974793.html|title=Home Video|date=December 3, 1993|work=[[The New York Times]]|access-date=April 9, 2017|archive-date=June 24, 2016|archive-url=https://web.archive.org/web/20160624015503/http://www.nytimes.com/1993/12/03/arts/home-video-974793.html|url-status=live}}</ref><ref>{{cite news | url=https://www.nytimes.com/1993/09/09/business/market-place-investors-can-only-guess-which-video-game-device-will-conquer.html?sq=video+game+industry+1995&scp=10&st=nyt | title=Market Place; Investors can only guess which video game device will conquer. | work=The New York Times | first=John | last=Markoff | date=September 9, 1993 | access-date=April 23, 2010 | archive-date=July 27, 2018 | archive-url=https://web.archive.org/web/20180727115233/https://www.nytimes.com/1993/09/09/business/market-place-investors-can-only-guess-which-video-game-device-will-conquer.html?sq=video+game+industry+1995&scp=10&st=nyt | url-status=live }}</ref> far above competing game systems and aimed at high-end users and early adopters. Hawkins has argued that 3DO was launched at {{US$|long=no|599}}, and not "higher myths that are often reported".<ref>Ramsay, M. (2012). [[Trip Hawkins]]. ''Gamers at Work: Stories Behind the Games People Play'' (pp. 1–15). New York: Apress.</ref> In a later interview, Hawkins clarified that while the [[suggested retail price]] was {{US$|long=no|699}}, not all retailers sold the system at that price.<ref name=Retro122/> Goldstar, Sanyo, and Panasonic's later models were less expensive to manufacture than the FZ-1 and were sold for considerably lower prices. For example, the Goldstar model launched at {{US$|long=no|399}}.<ref name=gamespy/> In addition, after six months on the market, the price of the FZ-1 had dropped to {{US$|long=no|499}}.<ref>{{cite magazine|date=May 1994|title=3DO Prices Drop|url=https://archive.org/details/GamePro_Issue_058_May_1994/page/n169/mode/2up|magazine=[[GamePro]]|publisher=[[International Data Group|IDG]]|issue=58|page=168}}</ref><ref>{{cite magazine|date=April 1994|title=3DO System Down to {{US$|long=no|500}}!|url=https://archive.org/details/Electronic_Gaming_Monthly_57/page/n17/mode/2up|magazine=[[Electronic Gaming Monthly]]|publisher=Sendai Publishing|issue=57|page=18}}</ref>