ICStats on 07 May 2014
| eFKac said: As for lifetime, looks like surely it will be below the 20m mark, absolutely abysmal after coming off of 100m sold. Worse even that it looks like they still are losing money per unit, how is that even possible is beyond me, but after looking at the projection they are not going to cut the price anytime soon, which is probably a good call cause they can't afford it, but it leaves them between a rock and a hard place. |
Have to sell a high volume of units to be able to realize good cost reductions.
1) Existing Inventroy: If they projected to sell 9 million then it's fairly possible they built up a large inventory of parts at last year's prices. Can't "cost reduce" inventory, or ordered parts, because they're already paid for.
2) Design costs need to be ammortized over many units. Spinning new parts, new fabrication lines, etc. aren't cheap. Partners want commitment for high volumes (e.g. 10 million parts) to get good pricing. All this could be affecting ability to realize cost reductions at the volume Wii U is selling.
My 8th gen collection
