| deathcape said: http://seanmalstrom.wordpress.com/2008/08/22/nintendo-says-pachter-is-wrong-about-the-wii/ /thread this is bullcrap |
Yeah, Malstrom's posts are often bullcrap.
bdbdbd wrote:
"@Picko: So, what stupid did Malstrom write to his blog post? And what's the issue with the oil? What Malstrom wrote is excactly what's happening with oil right now.
No, it wasn't priced too low. With the Wiis pricing, it is able to go far without pricecuts and it will sell longer with the current price. The problem with PS360 pricecuts is, that people wait for them and buy their console either after the price goes down or their most anticipated game comes out (this is where you don't get additional software sales). After all, Nintendo wants to make profit with the software, not hardware. Besides, you don't profit from selling your product with price, you profit from cheap manufacturing."
Well first of all a large proportion of his argument comes from Nintendo denying what Pachter said. I'm sure we could come up with a list (numbered in the thousands) that detailed times when companies denied doing something that they were actually doing. Malstrom doesn't understand economics, which is rather important when commenting on the decisions that businesses make, and therefore Malstrom is naturally prone to saying stupid things. I would suggest that all gamers take anything and everything he says with a grain of salt. If we assume that it is difficult to increase production, they shifting shipments when the US dollar is weak is a rational and intelligent thing to do. It is how a responsible and business-savy firm would act.
As for oil prices, Nobel prize winning economists cannot agree on what exactly is happening in the oil market. I analyse the oil market myself and there's no clear evidence of what forces are driving the price decrease. Malstrom gives a straight answer, he doesn't clarify it in any way (he also doesn't mention the worldwide financial crisis or the worldwide slowdown in economic growth). As someone who knows better, I can't help but read his posts and shake my head. The guys knows next to nothing (he does however tell people what they like to hear).
As for whether the Wii was priced to low, the demand outstripped supply therefore the price was set too low. There is no debate to be had on that. Simple as that.
