Who is the most money grubbing console maker in the industry?

[sc94597]

maxleresistant said:

sc94597 said:

In inflation adjusted dollars the Switch is comparable to the Wii. In 2007 you'd be hard pressed to find a top-end gaming PC as powerful (all things considered) as the Switch, let alone home consoles. The best GPU's at the time had 1 GB of GDDR VRAM. Most GPU's only had 512 MB. And these were cards that cost $500. By the way, the PSP retailed at $250 when it first released (which is almost $300 today) and sold quite well. Not as well as the NDS, but still quite well. The same can be said for the 3DS (albeit with an immediate price drop.)

 

Inflation doesn't factor in a lot of important things. I could argue that at the same time, the price of tablets went down a lot, and so did components and manufacturing.

And that while the dollar went up 20%, the average salary clearly didn't, meaning that for the average consumer, 250 in 2006 was still cheaper than 299 in 2016.

So please, stop using that biased argument of the  inflation. It's just a cold and number, reality is different. 

The equilibrium prices of  a particular good have nothing to do with inflation. Inflation is caused by the expansion of the money-supply (the value of the dollar and its purchasing power decreases.) That any set of similar goods might decrease in nominal price over time doesn't discount that the real value of the dollar is less than it was, because there are more of them in supply. When you spend dollars you are inducing an opportunity cost from not being able to spend that money on a composite good. So yes, inflation does  matter, even if the prices of electronics are decreasing. Money doesn't have a different value just because you are buying electronics.

Also real median income (meaning it is inflation adjusted) is almost back to 2007 levels (where it peaked) and is well above 2008 levels  (when the Wii was still being sold for $250 AND the great recession started.)

https://fred.stlouisfed.org/series/MEHOINUSA672N