Quoted from gameover1173:It's actually fun fixing and maintaining your own machines
Yes, but there is only so much time in the day. If someone can afford to get every new title, they can probably afford a service contract, and get a discount if they have more than one system under contract at the same location.
I work for a company that does factory field service and maintenance on high tech scientific instruments that require a lot of attention. It requires specialized factory training, etc. Rule of thumb is that a yearly service contract costs some percentage of the sticker price of the equipment to cover parts, labor, and travel.
A contract on a $7500 LE would cost maybe $350/year since it does not require as much specialized training, and things like smashed playfield glass or spilled drinks, parts and labor would not be covered.
Maybe an extended warranty on a car would be a better example. Not sure what those cost.