Op Ed Piece: The Biggest Blunder of the Next-Gen

[rocketpig]

Well I mostly agree.  Your point that the Wii is overpriced for what you get is sorta misleading.  I know what you mean, but others will take it the wrong way.  Nintendo sells the Wii for a $25 profit (slightly less in America because of Wii sports bundle).  Economically speaking, anytime demand is outstripping supply a machine is underpriced, because it means that they are not maximizing their profits.  Ideally, you would sell 90% of a stock at a price that's well balanced.  The PS3, by pure economic terms, is overpriced, because supply far ouststrips demand, despite the fact that it's sold for a large profit loss.   Really the terms under and overpriced are often misused because people think of them as the "bargin" the company is giving you, but in fact they should really only be used to describe the consumer's demand for the product.

Not to derail this subject but I have a hard time believing that Nintendo is only making $25 on each Wii.

It's basically a GC with slightly boosted output (not enough to even cost Nintendo an additional $40 on processor and vid card), wireless (very cheap), Bluetooth (also pretty cheap), and nice controllers (what, maybe an additional $20 cost to them at most).

They were selling the GC for $99 at the end of its life. I don't see how the Wii comes anywhere near $150 in additional cost of manufacturing.