osed125 said:
Figgycal said:
osed125 said:
And after the price cut, it was selling at a heavy loss until NSMB 2 came out. This is where the risky business decisions end up paying off in the end.
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If by "selling at a heavy loss" you mean "making profit on each system sold", you are correct. According to Eurogamer- each 3ds costs $101 dollars to make and Nintendo were selling them for $250. They were criminally overpriced because they knew demand was there for the system. There was no risky business descision involved in lowering the price. None of Nintendo's previous consoles were risky. They all rely on making the system cheap and making profit on each unit sold. For whatever reason they went the opposite direction with the Wii U and it hasn't been working out.
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That's only taking into consideration how much each part costs. Assembling, marketing, packaging, what the retailers takes, and other stuff aren't in those $101.
I believe Nintendo was breaking even or taking a very slight profit with the 3DS at launch.
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I wish I had actual numbers about how much it costs for shipping and such, but I don't believe that is necessary in this case. A 149 dollar mark up is unaceptable. There is no doubt that Nintendo is making profit on each 3DS/ 3DS XL/ 2DS sold.
I believe that's why retailers are able to sell 3DS XL's below the MSRP so often. I rarely see 3DS Xl's actually sell for 199.
