3DS on pace to pass first years sales goal!

[Seece]

kowenicki said:

Seece said:

kowenicki said:
So they are passing a reduced forecast on a massively reduced price.....

Not much of an achievement really.

What was the original forecast at the old price?

It was. And I agree, in times like these they should have cut to $199 not $169 or whatever absurd price it is. At $199 it's likely they'd be profiting/flat. They wouldn't sell quite as much as 16m, but the SW this xmas still would have shifted a lot of units.

It soog that the 3DS has taken off to an extentin adoption, but I dont see how this is anything other than a disater from a financial persepctive.

Given that we know the 3DS was sold at a loss at its launch price the losses on this must now be huge.

The extra 4 million at $169 gives us $680m inrevenue and zero profits, massive losses on hardware (the loss will be the price cut plus some more).  You could easily summise that the loss on the 4m consoles over the period is around $360m ($90 loss on each one), so revenue of $680m for a loss of $360m... madness.

The extra 4 million at $249 would have given $1bn in revenue and still zero profits, but only small losses on hardware.

 

I'm not sure they were making a loss at launch? Might be confusing that with Vita. As far as I know they were heavily profiting on the $250 price tag, which is why I think perhaps $199 is the magic mark at which they'd break even.