Wii Don't want to play

[Picko]

TWRoO said:

321tttrini4everz said:
nope...i mean, the system cost $200 to make at launch...imagine what it is worth as of now.....
nintendo making $50+ off of me ? no way !

So the only things you will spend money on are those that cost the manufacturer/provider more than they cost you.... that leaves you with the PS3 and the British rail network.

I also must presume you have no jewellery or clothes because even the cheap stuff costs the customer at least double what it does to make... and the better quality items will set you back many multiple times what their base value is.

As has been said before, value does not equal the sum price of components.... value is what price a customer is willing to pay for an item. Thus the Wii is slightly more than twice as valuable as the PS3 because it sells twice as much (actually nearing on thrice as much for recent weeks) so if you want to put what is a rather stupid argument into the discussion and equate the prices in a price:sales ratio.... the Wii would still have a higher value than the PS3 because more would still be sold if they were the same price.

36.62 million @ $250 = $9,155 million

11.03 million @ $400 = $4,412 million
5.86 million @ $550 = $3.223 million

Total = ~ $7.635 million
(can't be accurate due to price changes, but will be in the ballpark. I made the price split at the release of the 40GB, but there were some sales at $500 for the 80GB after that time, but before that nearly all sales were at $500 back until the 20GB disapeared, at which point most sales were at $600 because 60GB sold more than 20GB (especially in Europe) so the average of these sales is likely nearer £500 than $600, but I used $550 anyway)

Of course that doesn't include stores cutting prices of the PS3, here in the UK at least I could easily find a PS3 at £10-30 cheaper than it's current price (and those going for the RRP had additional store bundles thrown in like extra controllers and games) wheras the Wii was be scalped only to be re-sold at double or more of it's RRP in the worst times.

Unfortuntely, most of this analysis is incorrect economically. Demand is a function of price so you cannot say that the Wii is valued twice (or three times) as much as the PS3. We have no idea what value people place on a Wii or a PS3, just how many are willing to purchase the consoles at their respective price points.

It is quite possible that the Wii would sell less than the PS3 at the PS3's price point - but we cannot know for sure as the Wii has only had a single price point since launch. My feeling is that the sales of the Wii would remain constant as price increases a small amount (as demand exceeds supply at the moment) before falling off quite quickly as price reaches a point above what a mostly casual audience is willing to pay. Of course that's all speculation.

But the moral of the story is that we know nothing about the demand curve for the Wii and almost nothing about the demand curve for the PS3. We cannot say things like the Wii is twice as valued as the PS3 because of the different price points. Value is a particularly individual concept that describes how much a person is willing to pay for a good - you essentially stated that people are willing to spend twice as much on a Wii than a PS3 and I someone doubt thats the case.