your mother said:
I agree with most of your post, except these points: Now, i'm gonna tell you, it's actually not a good deal for Nintendo. Overall, it's still a good deal because they still make money on the hardware. The piracy issues isn't going to go away anyhow. What's worse, if Nintendo games cannot be pirated, then Nintendo wouldn't make money on hardware either! Nintendo is fortunate that they actually make a profit on Wii hardware. I don't see that as Nintendo's good fortune. I see that as good and sound planning by Nintendo! It was their plan to start with - make money on everything. Contrast that to the PS3 which in China is completely and utterly overlooked. They _could_ expand their manufacturing base so much that they make profits only off hardware in China, but I'd rather them focus their energies elsewhere. They don't need to manufacture hardware and distribute in China - all the independent retailers are doing this already! Even with an official launch in Hong Kong, the PS3 is still selling miserably compared to the Wii which hasn't been, and probably will never be, officially launched here. Yet, despite the lack of official distribution or even hardware, you can find all the Wiis you want here, and hardly any PS3s are being carried by retailers because it simply doesn't sell. |
italicized: as i explained in my post, it's not a good deal because even though they can make money on each units sold, there is no software attachment like in the US or Japan. it is DEFINITELY a BAD DEAL for Nintendo. making OODLES of money is better than making SOME money.
the third point is essentially the same point--they're better off selling Wii's to markets where they actually pay $50.
the only good thing that's coming out of this is brand recognition. which is intangible, but could potentially go a long way. which is why i'm hoping nintendo will make hardware that sells big in china (wii fit, for instance; but they need more than just that).
the Wii is an epidemic.