routsounmanman said:
When you sell older technology ( processin-wise ) for an insanely high price, you're stealing. I once read in a magazine ( NGamer UK) that Nintendo ( and in particular Shigeru-san) wanted to price Wii at about 100$ but two factors contributed to the high pricepoint:
1) High cost parts ( Flash memory etc) 2) Big-chain retailers complaining about the low-margin profit from each unit sold. |
I am at Uni doing a Jewellery course, you really don't realise what an excellent bargain you are getting with the hardware, most products cost a miniscule amount of money to make compared to what they are sold for.....
for instance if i make something i can price it in two ways, the first is to work out the cost of materials, add a price for the hours it takes to make 1/a set/whatever (depends on your hourly rate...say £10-15 an hour to help include any development costs (takes longer and extra material to get the first 1/set correct)) then if you are selling it straight to someone else, like maybe Ebay or something, you at least double whatever the previous stuff adds up to....If you use a retailer like a jewellery store, they will double it again so they make a profit too. (unlike games consoles where the actual hardware makes minimal profit for the retailer, it's all about the games)
Another way is to work out what kind of customer you are selling to, then work backwards to find what materials to use, this is generally going to be more expensive for the customer (in terms of material and labour cost) than the first way.
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With Nintendo someone worked out the cost of the materials in the Wii saying they make $13 each in Jp, $49 in America and $74ish in Eu, that wasn't including anything for the remote/nunchuck or Wii-sports in the West....nor the packaging cost (yes it's minimal but it counts) the distributing costs, advertising... etcetera etcetera.
If you took out all the seperate software and extra perephrials from the equation[sp?] Nintendo would not be making a profit with the Wii. (though less advertising would be needed with only Wii sports as a game, but even then i doubt Nintendo would make a profit)
