Nintendo Switch Lite Officially Revealed - $199, September 20th, Dedicated Handheld

[thetonestarr]

RolStoppable said:

Barkley said:

I guess really there isn't a singular definition for "overpriced".

If people are buying it, it's not overpriced for the market, but if the price is ridiculous high compared to it's production costs it's overpriced compared to it's value.

I don't care how many people buy the $999 Mac Pro stand, it probably costs apple $100 max to make, it's overpriced.

So there's overpriced in terms of raw value, overpriced in terms of market acceptance and overpriced in terms of functional value. So it depends which one you're going for I guess.

Using production costs to settle the question for entertainment products doesn't really make sense. When the original Star Wars trilogy gets released on Blu-ray, it's sold for a much, much higher price than it costs to manufacture the discs and packaging, but what people are really paying for is the movies. When people buy a console, it's not about the cost of the individual parts, but rather about which library of games they get access to, because there's no point in buying a console without the intention to buy games.

The example of the Mac Pro stand is a bit strange, because I very much doubt that that thing sells well enough to not be labeled overpriced, so it's unnecessary to take an approach different to the one I outlined in my previous post. It's overpriced any way you slice it.

No, using production costs to justify how high the price may have been is quite valid.

Using production costs to argue that it should have a lower price would fit more in-line with your argument and examples.

Regardless of any perceived value, at a very least, companies are frequently advised to sell their products expensive enough to recoup production costs. Selling at a loss typically is only done in order to encourage sales and hope those losses are recouped via software. Then, any additional MSRP above production cost comes down to perceived value.