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DietSoap said:

A little more on this, kind of interesting

 "It was also noted that Nintendo are currently losing 20 billion yen each year on Nintendo hardware, but that this loss will be reduced by reusing the production plants for the next generation of hardware. A closing comment was made that if Nintendo could reach an operating profit of 150 billion yen for the year, the stock price could well rise to 20000 yen (it is currently around the 12500 mark)."

http://www.the-magicbox.com/forums/showthread.php?t=9151

 

 Dates for price cuts if anyone's interested:

http://vgsales.wikia.com/wiki/Price_cuts

That figure was analyst speculation and I'm very dubious at that number to begin with as that would mean a $197 million loss per year on GC hardware. 

DietSoap said:

Source then?

 

"IGNcube: Okay. Now GameCube is selling for $99 and it's doing great. But is Nintendo losing money on each unit sold? 

Perrin: I would say that our losses are really negligible. It's such a small amount"

http://www.ign.com/articles/2004/01/15/gamecube-sales-update?page=2

 

They made up for it with software of course like they assuredly did at launch as well, but they still sold the console for a loss.

Then perhaps that si when they took the $9 hit per unit.  I was under the impression it was at launch.



The rEVOLution is not being televised