Leaked specifications list for the Project Cafe

[Xen]

Viper1 said:

Xen said:

Viper1 said:

But that's just the thing.  These are not high end expensive parts and the Nintendo could easily make a profit from the console day 1.

Nintendo is not really the problem here, but 3rd party developers are. Remember all the studios that went belly up this gen? I'm afraid of lots more following them.

Though until you picked me up on prices, I did kinda fear for Nintendo selling consoles at a loss.

So your concern is on software development costs as much as hardware.  A valid concern but as I noted a few posts back, the costs of developement being amortized across 3 (or 4 if you include PC) platforms helps ensure devs/pubs recoup their investment.  To further explain, see below:

Say a major exclusive development costs about $28 million and you get 1 million in sales.  2 consoles may cost $30 million but you get 2 million in sales.  3 consoles cost $32 million and you get almost 3 million in sales.   The return rate at $20 per unit sold would net you $20 million, $40 million and almost $60 million respectively.

That actually sounds very viable. You sound like you're a developer yourself.