Ail said:
jarrod said:
letsdance said:
did someone suggest that the Wii could drop the price to 99 dollars... Yeah... maybe if they want to be as dumb as sony and start losing billions of dollars. Seriously, they were using old tech... the reason why Nintendo didn't drop the price till recently is because they are profit driven company and they could drop the price and make a profit at the same time... so now you want them to drop the price twice as much as they did already? Yeah... it'll spur sales to insane amounts but it will sell more than the Ps3 did and at a loss. |
At $99, Nintendo would likely still be profiting (or at worst breaking even) on Wii. It's basically just an upclocked GameCube (which they were profiting off @$99 5 years ago) with a flash drive and wifi chip.
The reason Nintendo didn't drop the price until this year is because they were selling out their stock basically as soon as it hit shelves. They've been making insane margins on the hardware all along.
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Their margins aren't that high, it doesn't take rocket science maths to see that.
You're suggesting the Wii is profitable at 99$ means Nintendo would have made 150$ or so per Wii sold last financial year.
They sold 26 millions units.
That's 3.9 billion$ profit...
Nintendo made 2.8 billion$ net profit that year and that included DS profit, DS software and Wii software and those last 3 are far from being negligible.....
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Nintendo's spending is also higher than it's ever been, both in R&D and promotion. And they're particularly vulnerable to yen/dollar fluctuations.
How was the GameCube profitable at $99 in 2004 Mr. Rocket Scientist?
