Sony and Microsoft can't compete with Nintendo -- on price

[montrealsoon]

mrstickball said:
Yes they can.

Unlike Nintendo, Sony and Microsoft have a long history of pricing their hardware at or below manufacturing costs, unlike Nintendo. This allows them to counter price drops rather quickly.

Nintendo has to make a profit from their gaming division to stay afloat. Nintendo nor MS need to. That allows them a much greater advantage on pricing.

 

Two things:

 - this isn't 2004.  Nintendo is making massive amounts of profits and dramatically increased marketshare in the past several years.  "Stay afloat" is not even on the radar as a consideration.

 - many people's eyebrows raised in 2006 when the Wii price was set as high as $249, remember it's two Gamecubes duct-taped together.  Do you not think that massive economies of scale haven't make the Wii cost even lower.  I've always considered the Wii to be the new Commodore64 as much as anything else, as it would be murder to attempt to compete on price: MS in 2008==TI in 1983?

 

Ah,  what you you mean by Nintendo "gaming division"?  They aren't structured like MS/SONY.  I was not aware that gaming was a subset of the company?  {smiley}