Train wreck said:
It does mean something though; you need to stop thinking like its 2006. If Nintendo or Sony, it really doesn’t matter since they are both Japanese companies, shipped 30 units of a game to retailers for hypothetical sake @ 49.99 in their local currency, 10 in each region and let’s say its 2008 (~averaged 160 Euros/115 Dollar) 10 Europe @ 49.99euros = 499.9 euros change to Yen, you get 79,984Y 10 US @ $49.99 = 499.9 Dollars change to Yen, you get 57,489Y 10 Japan @ Y4,999 = 49,999 Yen Total revenue in Yen is 187,472 total, so pretty much they are seeing 6,249 Y for each unit sold anywhere in the world Fast forward to Today (100 Euro/80 Dollar): Europe: 49,990 Yen; US: 39,992 Yen; Japan: 49,999 Yen total 139,981 Yen, 4,666 Yen for each unit sold So for the same 30 units the difference because of the exchange rate is -47,491 Yen and in order to realize the same sales, you have to sell 10 additional units today. The above example is just a hypothetical; imagine when you put actual numbers in (initial cost of the game, producer price cost, shipping overseas, actual cost that retailers buy the game, not even mentioning official price cuts, component shortages). Saying that Nintnedo will recoup the lost revenue from hardware from software is an extreme stretch
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I agree with everythng you said up to this point because, well, you're right. It's pretty obvious that Nintendo didn't wish to cut the price, no-one wishes to, because you have to sell more to make more. But Nintendo can easily remake any lost money with extra revenue from 3DS games.
I mean, 3 of the top 10 games sold WW last week were made by Nintendo, and that doesn't include online sales, sales of older games or DLC. So who knows how much they're really making from SW. But I'm willing to suggest it's easily enough to cover whatever loss they're making on the 3DS over last year.
If not, why would they cut the price? Same reason Sony hasn't on the Vita yet. It's not financially viable.
