Hypothetical: What if the PS3 was $150 right now

[jarrod]

TWRoO said:

jarrod said:

TWRoO said:

jarrod said:

EncodedNybble said:

jarrod said:
Inversely... what if Wii was $99 right now?

Actually, I sort of suspect a $99 Wii would still probably be profitable for Nintendo. lol.

Not so... I can't be bothered to explain but using Nintendo's financial statements they are probably making somewhere between $20-50 on average (using FY 2009 and previous.... perhaps exchange rates have helped or hindered them in the last 9 months to change that)

However what Grimes said will be true.... after all if Sony would lose about $200 per unit with a $150 PS3, well for the Wii to lose that amount it would have to be free

Man, if that's the case then they really, really need to get their engineers on some cost cutting revisions asap.  If they could get the GameCube down to profitability at $99 in 2003, then there's really no excuse for only making $20-50 on a $199 Wii in 2009.  Talk about money left on the table.

Well like I say, exchange rates can change this, and one of the main things for that seemingly low profitability is the poor rates.

And we have no idea whether the GC was profitable then.... only that Nintendo as a whole was profiting (they had GC games, and the GBA business as well as GC hardware)

No, Nintendo reps said they were actually profiting on hardware after a short period @ $99, and even when they took a slight loss on hardware initially, the sale of one game covered it.  The price drop correlated with several internal revisions, including dropping digital audio and the 2nd expansion bay/port for cost cutting.