Ail said:
jarrod said:
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?
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The game cube doesn't have motion control for starters...
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lol. How much do you think Wii controllers cost to produce exactly? Can you finish while you're at it?
ZorroX said:
@jarrod - i think, thanks to profit from GBA.
But in reality, there is a very low chance, that we will ever know the real situation. We can only guess.
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No, I'm talking per unit. Nintendo's gone on record saying the only time they took a loss on GameCube was when they first dropped to $99 in spring 2003, but by the next quarter they were turning a profit on every GC sold.
Wii uses repurposed upclocked GameCube spec, the chipset is undoubtedly dirt cheap by now and nothing else in the package (slot DVD drive, WiFi chip, 512MB flash, accelorometers, 64MB GDDR3RAM, power supply, plastic case, Wii Sports, AV cables, LED) is near pricey. iSuppli's teardown placed Wii's production cost around $158 way back at launch in 2006, by now it's going to be dramatically less due to volumes alone. Wii might even be cheaper to produce than the PSP GO even (less memory, no screen, similar spec).
letsdance said:
oh lordy... another infamous jarrod discussion here. |
Hopefully it goes as well as that PSP GO flopping one. 2nd shipment in 2010 looking more and more likely. ;)
