BasilZero said:
smbu2000 said:
It is not price gouging. It is called making a profit. It is not just the "build cost/cost of the components" of an item to find the total cost of something. They also have to make up for all of the R&D that went into putting it all together. Then there is manufacturing cost (actually putting it together), shipping cost, marketing cost, etc. that make up the real cost of something. Realistically all companies would like to sell their product at or above that cost in order to make a profit. When the price was $250, Nintendo was making a profit on the 3ds hardware. Now after the price drop they are not making a profit on the 3ds hardware. The majority of people were not willing to pay $250 for a 3ds, so Nintendo responded by lowering the price. If the 3ds was selling great at $250 and Nintendo decided to RAISE the price higher, then that would be price gouging.
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I still say 200 dollars for the system would of been enough for them to not lose money, but they chose to sell it at 179.99 to attract even more, that was their own choice to sell at a loss despite it being noble or whatever.
Yes I realize development, shipping costs werent implemented in the 100 dollar or so manufacturing cost, I'm not saying the system should be sold for 100 dollars...I'm saying a price range around 200 is more reasonable for both the company itself and consumers rather than 250.
Also are you implying they were making a loss before AND after? One of the reasons why the 3DS was doing so horribly was because of the lack of decent software, when Nintendo released Zelda and more of their first party titles, that is when the sales actually increased, yes the price of the system helped but it was the software which motivated people to buy it. I am pretty sure they would of made close to as many sales as they did now in the past 2 weeks if the price of their system was still at 250 dollars (and if the Vita wasnt still released).
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In your previous post you said they were selling the system for double what it cost to make. Now your saying that they would still be in the black by only a little selling it for $200? You're contradicting yourself here.
No, I'm saying they were profiting at $250, but are now losing money on the hardware at the current price point.
Do you seriously believe they would be selling as much now if they were still at the old price? The lower price has made it more accessible and much easier to get into as the price is similar to a PSP/Dsi/XL system. It makes the 3ds a much easier choice as it can also play DS games for the same price as a DS.
