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

[alephnull]

bdbdbd said:

@Alephnull: I'm not sure are you serious or just trolling with the revenue, peripherals and the business model. Revenue is pretty much irrelevant measure in some things popularity. Especially when the talk is about profiting with products. The whole point is about selling stuff cheaper and still make bigger profit per unit sold.

In razor and blades model, the whole idea of selling at a loss is to have a price advantage over the competition. By selling the product at a higher price and still make losses is very badly done. If next gen, Nintendo sells their products with profit and competition is selling with a loss and higher price, they still face the same problem.

My point in asking about revenue is that it gives us a hint at what demand might be, and that it is relatively independent of cost. When I had to help do a analysis of the Virtalization market for a budget proposal we didn't look at unit sales for ESX. I didn't make this up to troll nintendo. And quite frankly I haven't made up my mind about anything Squilliam said yet.

I think Squilliam will vouch for me when I say that it'll be a cold day in hell when I start trolling on MS's behalf. I honestly think they may have the largest share of the market, in a strategically more important sense than maket share as measure by unit sales.