| shikamaru317 said: The thing is, if you sell at a system at a loss early in a generation, it pushes sales considerably. The more a console sells early on, the more owners there are obviously; owners who will buys games, accessories, online subscriptions, etc. throughout the rest of the generation, which means you make back all of what you lost on the system itself and then some by the end of the generation. So here's a hypothetical situation for you: Switch at $300 with no bundled game sells 6m this year (made up number for the sake of the example). But, Switch at $250 with a bundled game would have sold to 10m people this year. That's 4m extra people who will potentially be buying games, online subs, and Nintendo's ridiculously overpriced accessories this year. All it takes to make back the $50 they lose on the console is 1 game sale and 1 accessory sale for each of those 4m extra people who bought it (they lose basically nothing on the bundled game because it's 1st party; they lose a possible, but not guaranteed sale of the game). And those 4m extra owners don't just buy games and accessories this year, they buy them throughout the rest of the generation. That's well worth selling the system at a loss imo. |
Thanks for this post. And all that is even assuming that at $250, they are even taking a loss..........
This loss leader concept that has been prevailant in consoles for God knows how long has suddenly become gibberrish to a lt of posters in this thread. They simply refuse to understand why or how all consoles can get away with selling atcertain prices and how there are so many ways they can make that money back.
I have spent 3 pages in this thread trying to explain this very concept to them, trying to tell them why every other electronic device (albeit I used smartphones because they have a very similar design make up to the NS) have to mark up their prices from what it cost them to actually manufacture their hardware becaus those companies don't hvae games or accessories or subscription services to sell you. Their business with the consumer ends the second that consumer pays for the hardware. But game consoles don't work that way..... yet that concept seems tooo complicated to understand all of a sudden.
