Assume for a moment that Nintendo took a $100 loss per unit; this would mean that roughly $600,000,000 that could be invested into game development is currently sitting as hardware in people's living room. Using an estimate of $10 Million per game this would mean that Nintendo would be paying for your hardware rather than investing in 60 games; if you assume that these games are released pretty evenly over a 2 year time frame, and that the average ROI was 25% this would mean that Nintendo could release 30 games in 2007, 30 games in 2008, 37.5 games in 2009, 37.5 games in 2010, 46.9 games in 2011 and 46.9 games in 2012 for the same initial investment as subsidizing hardware.
In other words, over a 6 year period Nintendo could initially subsidize your console by $100 or they could develop 228.75 games ...
I know as a gamer what I would want
