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

[MaxwellGT2000]

Squilliam said:

alephnull said:

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.

In an absolute sense revenue does not fully tell us what the demand of a console is because a console manufacturer can be quite aggressive with price cuts to increase overall unit sales whilst overall revenue falls. Now if revenue is falling but unit sales are increasing then you see theres not such a clear correlation between the two, let alone causeation. For example the Iphone probably has the highest demand in the smart-phone industry at the moment but it certainly doesn't have the highest revenue, but it does have the highest profit margin. We can see the level of demand relative to the competition with that metric. When two consoles are similar and the price of one effects the demand for the other the overall demand for that console is limited by the actions of the other console manufacturer.

 

You've made some good posts as of late I really didn't expect this thread to have such good discussions come from it, since I thought it would be trolled to death.  

Also is the iPhone still the most in demand?  I see a lot of people going for the blackberry and LG phones lately, would be interesting to see numbers on that.