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Pyro as Bill said:
Viper1 said:
Cutting the price, releasing a new console and moneyhatting would all reduce profits.

Consider this: Say production capacity is 25 million for the fiscal year.
If they sell 22 million at the current price of $200 with a $50 profit margin = $1.1 billion
If they sell all 25 million at the reduce price of $160 with a $10 profit margin = $250 million

At $160, they'd have to sell 110 million Wii's in one year to make the same profit as 22 million Wii's at $200.

Launching a new console is many times either sold for a loss or close to breaking even. The longer a console is out, the higher the profit margin thanks to reduced manufacturing and component costs.

Moneyhatting publishers millions just to get millions is a zero sum gain.

OK then. They need to improve the online, add a HD upscaler and make more hardcore games.

No they don't.