Does the Wii prove that the HD razor/blade model is flawed?

[MaxwellGT2000]

jarrod said:

Xoj said:

nintendo made money but it wasn't because of the gamecube.

 

GameCube itself didn't lose money, it actually made money.  The console was only sold at a slight loss (under $20) twice: during launch in fall 2001 and during the $99 drop in spring 2003.  Considering it was more capable than PS2, yet launched at $100 less, that's quite an achievement.

 

On topic, I don't think the razor/blades model has been proven outdated by Wii, but rather the tech arms race has.  You can still have a generational spec increase without breaking the bank having a gigantic loss leader, GameCube was good example of that.  Efficiency and familiarity is the future, not the tech envelope's bleeding edge.

A great point, something I have pointed out since I can remember getting into console/business discussions.  Sega and Nintendo have always used that idea, good tech, at the right price, coming out at the right time, Sega trying to do the same model as Sony helped them go under, Nintendo stayed their course and held through the N64 and GC eras.  Sony and MS really need to do more with R&D, find ways to be efficient, low cost tech with the best graphical results and it'll help both them and consumers, since more research helps prevent things like RRoD, E74, DRE, etc. along with the business benefits.