Unlike Panasonic, Goldstar initially produced only 3DO hardware, not software. This made it difficult to manage competitive price drops, and when the price of the Goldstar 3DO dropped to $199 in December 1995, the company took a loss of more than $100 on each sale. Goldstar tried switching to the usual industry model of selling hardware at a loss and profiting on software, but though a handful of Goldstar games were published for the 3DO, Goldstar's software development operation arrived too late to allow them to turn a profit on the 3DO. This lack of a profitable business model, combined with Panasonic acquiring exclusive rights to the M2 technology, were cited as the two chief reasons for Goldstar dropping support for the 3DO in early 1996. During the second quarter of 1996 several of the 3DO's most loyal software supporters, including the software division of The 3DO Company themselves, announced they were no longer making games for the system, leaving Panasonic as the only company supporting active software development for the 3DO.