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 at a loss, with expectations of making up for the loss with software sales. The 3DO was priced at US$699, far above competing game systems and aimed at high-end users and early adopters. Hawkins has argued that 3DO was launched at $599, and not "higher myths that are often reported." In a later interview, Hawkins clarified that while the suggested retail price was $699, not all retailers sold the system at that price. 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 $399. In addition, after six months on the market, the price of the FZ-1 had dropped to $499, leading some to contend that the 3DO's cost was not as big a factor in its market failure as is usually claimed.