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Dunban67 on 23 April 2015
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sc94597 said:
Dunban67 said:
sc94597 said:

The issue with this is that we don't know how much the current purchasers value the Wii U. It could very well be the case that if XBO stayed at $500 or $400 that it would do Wii U level sales, and if the Wii U were priced (it was close with $350) that much the direhard Nintendo fans who are currently buying the Wii U would still purchase it. In that scenario, as unlikely as it is, both the XBO and Wii U have the same number of people who value it at the high price, and therefore the same value. Again, value is dependent on the individual purchasers. The XBO/Wii U could possibly have some people who value it more at different prices. If both the XBO/Wii U were at $250 you can't say that the XBO will certainly have more people who value it than the Wii U, beause it is quite possible that people planning to purchase a Wii U just can't afford $300 and that is why $250 is the most they are willing to pay for it. On the otherhand people who value the XBO might possibly be able to afford $300 and therefore any gains from a price-cut might be less. So it isn't as simple as, "XBO has more powerful and therefore - pricy - components and therefore it is more valuable." 


 You are reaching and ignoring the facts-  but you get an "A" for effort

Please enlighten me. You had a good argument there! Wait nevermind, I don't take economic lessons from someone who can't distinguish economic value from market price.

Edit: For those who are interested, to illustrate my point with a graph.

 

I agree that value is intrinsic to the consumer and not manufacturing cost (see the launch for the PS3)-    Even if an individual consumer is willing to pay more for a Wii U( IF they had to)  than an X box One-,  they would not do so becausae THEY WOULD NOT NEED TO- if a person who preferred a Wii U could either buy an X box One or a Wi U for $200 they would buy the X box one if for no other reason than to sell it for a profit and put it toward a Wii U  (granted if money was not an issue for the individual they may not go to the trouble for convinience reasons or the value of their own time-  but most people (that prefered a Wii U) would  take the $100-$200 profit they could get for the X box  and essentially get an even beter value on their Wii U

The consumer ultimatly sets the value and no mass product (if any product) is priced at the exact terminal value all current purhcasers are willing to pay at that time - that would be impossible to accomplish -    individually what we personally  value a product is not meaningful to anone else  with rare exception  (unless your dealing w a con artist )

Either way-  I now give you an A+ for effort due to your nice grapgh