miz1q2w3e said:
Except what you've calculated here is overall revenue, nothing to do with actual profit. They were making a huge chunk of money on each unit sold at 249, now they might be taking a loss (rumored) or selling it at cost, which means no profit from actual 3DS sales, not matter how many. You're statement is false |
You dont even know what your talking about, please dont quote me if you are going to put up such nonsense. First sentence SALES RATE, sales = revenue, i never mentioned anything about profit. Rising revenue is important, especially in consumer electronics, because its an indication that your product is finding its way in to stores, which is being purchased by consumers. In order to calculate or assume anything about profit we will need something on the cost side which we do not have, so I didnt mentioned it. You assume nintendo was making a huge profit at 249, but you dont know. you failed to mention anything about exchange rates, increase advertising, cost of giving away the 10 or 20 games for the ambassador program, you know important COSTS that can affect overall profit.