If Nintendo (Wii) wins this gen...

[famousringo]

Sporticus said:
selling the Wii at $250 is just a perk, they could in fact easily sell it at $200 or less and still make a profit. but as long as they can they might as well make an estimated $60-$90 dollar profit and continue strengthening their company giving them the power to plow through this generation. It's really a brilliant move on Nintendo's part. I can't help but laugh when people try and say nintendo is crook for doing this when if fact their product is still the cheapest no matter how you cut it. Trust me, If Sony and MS could sell their consoles at such a profit, you know they would, they only thing keeping them from doing so is that their consoles are so ridiculously expensive that they have to try and find a price that is appealing to the consumer, not a price that is profitable. Ironically it is probably the price tags of the 360 and PS3 that are helping the Wii look so cheap in the eyes of consumers. It's as if this generation was the perfect formula for the Wii.

Selling a product below cost is called dumping, a predatory form of market manipulation designed to undermine competitors and drive them out of the market. It's an attempt to establish a monopoly. I'd much rather a company make an honest profit with their goods than try to establish a stranglehold on the market so they can set prices where ever they like later.