ManUtdFan said:
How do you know for sure it's selling at a loss? I thought Nintendo always made profit on every machine sold. |
This is pretty much common information for most people in here, Nintendo themselves have stated that they are dependent on selling one piece of software with every unit to be profitable overall. Hardware sold at a small loss (how small is hard to say but a 100$ price cut would make a 20$ loss truly massive at 120$, or about 50% of the retail price).
Cutting the price so soon would be a two-fold disaster; it would net them a large loss on hardware sales, one not offset by selling merely one software unit along with the machine and it would also send signals to the public, the investors and the competition that they are weakened and on the defensive and have completely misread the market.







