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Forums - Nintendo Discussion - Is Nintendo crazy? Why is the X1 almost the same price as the Wii U this holiday?

Cobretti2 on 27 November 2014
Game_God said:
Cobretti2 said:
Game_God said:
NightDragon83 said:
Rab said:
profit > userbase

How can that be when larger userbase = more profit over the long run, and smaller userbase = smaller profit over long run?


There is nothing true in your sentence.

100 people buying X product at 10$ loss won't put more money in the bank than 1 person buying Y product for 10$ profit!

More consoles = more games sales = more profits from games

So let's sell X1 at 1$, shall we??? Sales skyrocket ensuing massive profits, right???

There are a quantity of variables, factors to take in account wich you happily swept of the picture like they are nothing... Thresholds, diminishing return, profits from games go tho said game publishers, not all games make profit etc. etc.

While your "More consoles = more games sales = more profits from games" formula isn't necessarly false it's not necessarily true either!

Futrhermore, user base is not dictated only by the price, look at Iphone, not the cheapest phone on the market, yet...

Rather than parting money with a price cut, better & a lot more marketing would do marvels IMO.


lol i was just explaining what his logic behind his statement is. As it works from Microsoft and Sony in the long run.



 

 

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Game_God on 27 November 2014
Cobretti2 said:
Game_God said:
Cobretti2 said:
Game_God said:
NightDragon83 said:
Rab said:
profit > userbase

How can that be when larger userbase = more profit over the long run, and smaller userbase = smaller profit over long run?


There is nothing true in your sentence.

100 people buying X product at 10$ loss won't put more money in the bank than 1 person buying Y product for 10$ profit!

More consoles = more games sales = more profits from games

So let's sell X1 at 1$, shall we??? Sales skyrocket ensuing massive profits, right???

There are a quantity of variables, factors to take in account wich you happily swept of the picture like they are nothing... Thresholds, diminishing return, profits from games go tho said game publishers, not all games make profit etc. etc.

While your "More consoles = more games sales = more profits from games" formula isn't necessarly false it's not necessarily true either!

Futrhermore, user base is not dictated only by the price, look at Iphone, not the cheapest phone on the market, yet...

Rather than parting money with a price cut, better & a lot more marketing would do marvels IMO.


lol i was just explaining what his logic behind his statement is. As it works from Microsoft and Sony in the long run.

That's fine, I was just explaining how this simplistic logic is faulty. I know that you have to spend money to make money but to some extent. If Xbox wasn't backed by Windows money, it would have shut down long ago but here we are entering the dumping issue & how unfair, dangerous it is... so another topic...



https://www.youtube.com/watch?v=n29CicBxZuw

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Rogerioandrade on 27 November 2014

Isn´t Microsoft still selling XboxOne with a loss?
Anyway, most WiiU bundles come with two games, not sure how many $ 329 XboxOne bundles are there with two games. It doesn´t seem that Nintendo is worried about having a huge userbase, it seems they´re worried about not bleeding money



kopstudent89 on 27 November 2014

Margins. In the end Nintendo is a business. Dropping the price would be stupid when they're gaining a bit of momentum (wrt previous sales).



NightDragon83 on 27 November 2014
bubblegamer said:
Nintendo is not known for fast price drops. They like to keep their prices much longer compared to the other two.

Since when?

NES Price History:

Fall 1985:  $199 w/ SMB, $249 w/ ROB, Gyromite & Duck Hunt... Limited US Lauch.

Fall 1986:  $149 ROB pack, $99 Control Deck w/ SMB.

Fall 1988:  $99 Action Set w/ SMB & Duck Hunt

 

SNES Price History:

Fall 1991:  $199 w/ Super Mario World at launch, later $149 "core" system.

Fall 1992:  $149 w/ SMW, $99 "core" system.

Fall 1993:  $129 "Mario Set" w/ SMW + All Stars, $99 "core" system.

 

Nintendo 64 price cuts
Country
  
 Date
  
 Price
  
 Source
  
United States September 1996 $199 (launch price)  
United States March 1997 $149 (-$50)  
United States August 1998 $129 (-$20)  
United States August 1999 $99 (-$30)  
Gamecube price cuts
Country Date Price Source
United States November 2001 $199 (launch price)  
United States May 2002 $149 (-$50)  
United States September 2003 $99 (-$50) [53]

 

The Wii is the only Nintendo console to not see a price drop within its first year on the market, as the price was maintained at $250 from Fall '06 to fall '09 due to high demand.  Meanwhile, within the first 3 years on the market, every previous console's price had been cut in half by that point.



On 2/24/13, MB1025 said:
You know I was always wondering why no one ever used the dollar sign for $ony, but then I realized they have no money so it would be pointless.

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3sexty on 27 November 2014

I think that the costs associated with the additional and mandatory hardware being the tablet controller prevents Nintendo fom reducing the price by any significant margin. They should make it an optional feature like the kinect with xbox. Easier said than done of course as many games have already been designed with the tablet in mind.



Xbox 360 and Xbox One

Gamertag:  GamertagOz70

Proxy-Pie on 27 November 2014
curl-6 said:
Cos Microsoft can afford to hemorrhage money from every orifice, but Nintendo can't.
MS are pushing for userbase expansion, Nintendo are pushing for profit.

This.



Asriel on 27 November 2014
curl-6 said:
Cos Microsoft can afford to hemorrhage money from every orifice, but Nintendo can't.
MS are pushing for userbase expansion, Nintendo are pushing for profit.


A thousand times this. Microsoft will fight tooth and nail for marketshare, Nintendo need to fight tooth and nail for profits. Say what you want about their durability, Nintendo can't go on losing money year after year. This year needs to be a return to decent profit.



saarr_x on 27 November 2014

Micro$oft is just desperately trying to beat the PS4, although Sony is still winning without even trying to counter attack. Nintendo just wants profit as others have stated before.



jonathanalis on 27 November 2014

nintendo shareholders want profit now, not later in software sales. not after 3 years of losses.