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Forums - Sales Discussion - Global Hardware 13 October 2018

Kerotan on 01 November 2018
PortisheadBiscuit said:
Kerotan said:

I don't think you understand economics. We're talking the consumer here not literally. Value to the consumer is the perceived bundle of benefits they get in return for their money. 

 

"Perceived value is the benefit that a customer believes he or she received from a product after it was purchased."

 

So to the high end customer who buys apple products, despite it being more expensive they view the iPhone as the most valuable purchase from their point of view. Status, culture, self image, software, hardware, price etc are all  just a few of the benefits they perceive.

 

This is why apple are genius. They sell the most profitable phone to a large group of loyal customers who see the purchase as valuable to them. Apple would prefer to be the most profitable company rather then the company who sells the most units. If they can have both then great. 

Lol at not understanding economics as if you've provided Socrates level of insight yourself. 

 

So you're admitting Nintendo is genius as well. They have very similar business practices as Apple, rarely incentivizing their loyal fanbase. They don't (and won't) sell their hardware at a loss to compete. Whereas Sony and Microsoft have been doing this since the beginning, taking me back to my original point which started this stale dialogue. Sony giving alot more to compete with Smash, and nulling Drake's point of Smash not competing with AAA titles. 

Eh it's pretty basics economics which I've studied. Marketing module went over it too.

Yes I'm admitting on many occasions Nintendo have been very smart by doing this. Not always. You are wrong though in saying Sony have always sold at a loss. The ps3 is an anomaly and this gen with ps4 they are genius keeping the price from dropping as the cost of production drops but the perceived consumer value increases.

 

BTW you are imagining things if you think Sony are doing this to compete with smash. Nintendo isn't their primary target. Xbox is, especially in America.