Random_Matt said:
JRPGfan said:
Lets say you make a chip, and assume you can sell it for x amount of $.
You make a couple of million of them (x$ times millions), hopeing to score some Tablet contract...... it falls through.
Now you have millions of these chips laying around in a warehouse.
No one wanted to buy them, so nvidia started makeing Shield TV, shield handheld, ect trying to not lose so much on the chips.
But its not selling well.... so you still have millions left.
Nintendo offers to buy them from nvidia, but knows nvidia cant really sell from a position of strength.
Its sell it to nintendo for dirt cheap, or risk never getting anything for them.
Nvidia choose to sell them dirt cheap.
Semiaccurate wrote a article about it, where they heard it from a inside guy, Nintendo got a really good deal on them.
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Nintendo probably have a discusting 70% profit margin like Apple then?
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Wouldnt be surprised if on every Switch sold, nintendo takes 100$ to the bank.
Kinda greedy when sony/micrsoft probably make only tiny amounts on each sale.
Nintendo are good bussiness men though, and switch is gonna make them even richer.
I hope sales slow down abit, and nintendo decides to do a price drop early.
*edit: The greed though of nintendo, if they have HUGE profits on switch unit sales, why the hell are the accessories also so damn expensive? >_>
