| RolStoppable said: Hardware production costs aren't an issue when you don't sell the hardware at a loss. In such a case you are making additional profit. If you make your own hardware, you don't have to pay royalties to someone else. If you make your own hardware, you can collect royalties from other developers. If you make your own hardware, you can sell accessories for it. Bottom line: You can make much higher profits from gaming when you make your own hardware. |
Its not just the hardware production cost.
Selling hardware at a proft is wii u situaiton. Nobody will buy it because overprieced.
If NX is as powerfull as Ps4, nintendo probl need to sell it at 500-600 bucks.
Its not just the hardware costs (which would probl be around 300 bucks). But also warranty, services, development, advertisment, licensing, online architecure.
If they still wanna make a profit, they need to charge high prices = automatic failure.
Thats why iPhones get sold for 600+ dollars and the production cost is just 150. Thats how to make profit with hardware sales. Nintendo wont be able to do this. if you think they could, please explain how.
