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richardhutnik said:
Where you getting the cost per system figures from? Like you have Nintendo losing $300 per each Wii system sold. You have any indication Nintendo has ever lost any money on each Wii they sold?

I don't have a source for the manufacturing cost for the systems, which is why there is a variety of manufacturing costs for each system. For example:

PS3 $50 price reduction:

 

Initial Price

New Price

Cost

Sales Rate

Loss per system

400

350

500

1.25

$350.00

400

350

450

1.25

$300.00

400

350

400

1.25

$250.00

400

350

350

1.25

$200.00

400

350

300

1.25

$150.00

400

350

250

1.25

$100.00

 

 

Initial Price

New Price

Cost

Sales Rate

Loss per system

400

350

500

1.5

$250.00

400

350

450

1.5

$200.00

400

350

400

1.5

$150.00

400

350

350

1.5

$100.00

400

350

300

1.5

$50.00

400

350

250

1.5

$0.00

Depending on whether you think the PS3 costs $500, $450, $400, $350, $300, $250 to manufacture and whether you think the PS3 would see a 25% or a 50% boost in sales from a $50 price cut would determine which loss per system you were looking at.