Wii U vs PS4 vs Xbox One FULL SPECS (January 24, 2014)

[Viper1]

Andrespetmonkey said:

Viper1 said:

I think you're still slightly missing the point.   It's not about how much you or I think it will cost, it's about how different the exchange rate has changes since 2006.  This means we have to change our way of thinking how a console can and will be priced.

To be more specific, anything Japanese will have to sell at a far hgiehr price in foreign markets now than they did in 2006 to make the same margins (profit and loss).

 

Go back to what I posted at the Wii.
Wii 2006 in Japan = ¥25,000 = $205 (in 2006) and $320 (today).

That's a huge difference.  That means if the Wii were to launched today instead of in 2006, it would have to cost $320 in the US to make the same amount of profit or loss as it did back in 2006.  Launching it now at $250 (liek they did in 2006) would mean they take a $70 loss on every Wii sold in the US.

Do you see how that impacts the pricing now?   

Ok, this is what I thought you meant first. I get it.

So let's say it's made for $500 and sold for $400. What would the price be for Japan, still keeping the loss at $100?

A $400 US cost would be ¥31,434.   Keep in mind that the 32 GB Wii U is priced at ¥31,500.  

It's really had to reverse the concept of cost since the price and costs originate in Yen so you really need to start there first.  That in mind, if the 32 GB Wii U is going to sell for ¥31,500, I can imagine to have a powerful PS3, it would likely cost more.  Even with a loss.  And then you do the conversion back to USD...or GBP, Euro, etc....

Point is you have to start wiht the Yen first to begin to understand what it will cost here, how much losses they can expect and how powerful they can design (given the costs).