Switch OLED model just got announced.

[Chrkeller]

IcaroRibeiro said:

Chrkeller said:

Consumers could also buy used or go exclusively retro.  Gaming is a 'want' not a 'need.'  So consumers absolutely dictate prices.  Look at ps5 scalping.  Is the ps5 worth $1,000???  For many the answer is 'yes.'  If consumers didn't dictate price scalping wouldn't exist.  

So you just proved it, it's companies who defines prices not customers. Sony is not selling PS5 for 1k USD even if scalpers are selling it for 1k. If you are short minded, they are actually losing money for not selling overpriced hardware which they totally could in current context

Indeed retailers are legally blocked to sell it for the prices they want to, they need to keep hardware prices in line to whatever manufacturers want to. So where is the free market ? Where are the market laws? 

I don't understand how people keep repeating this such economic bogus. Customers could only possible didactic the prices if competition was perfect, this market is already a shared monopoly, there is no remote possibility for economic equilibrium. 

Not at all.  As YOU ALREADY pointed out, Sony could sell the ps5 for $800 for the first year.  But it would damage their brand, which would hurt future sales.  Hence Sony netted out at $500 as the optimal price point based on what is best for their system.  If Sony could sell the ps5 at $800 and not hurt their brand, you **** straight they would.  But consumers wouldn't let a $800 ps5 fly in the market price, so effectively consumers dictated the price at $500.    

Free market is based on sales.  If a product is launched at 'X' price and it doesn't sell, a company will adjust their pricing.  I believe the 3DS is a great example of this.  

Consumers 100% dictate price, always have and always will.  There isn't a monopoly in gaming.  Switch, Xbox Series X, Xbox One, ps5, ps4, mobile games, PC, etc, etc, etc.  

Speaking a bogus economics, "shared monopoly" is about as silly as an argument can get.  There is sony, nintendo, Microsoft and PC.....  there isn't a monopoly.  Each company will sell their products at the highest price the market will allow.  Right now Nintendo is decimating the competition, hence the price of the Switch stays high comparative to the competition.  There is a reason why Xbox One dropped quickly in price and the ps4 didn't.  There are examples beyond examples in the gaming world where consumers clearly dictate price.  

Ask yourself this simply question; if the Switch launched and bombed in the market place, would Nintendo have cut the price?  

*the answer is yes, Nintendo would have price cut the Switch.  But since CONSUMERS bought the Switch and continue to do so, the market is allowing Nintendo to keep the price of the Switch at the original MSRP.  See 3DS or Xbox One for more information.

*Kinect is another example.  MS dropped that like a rock with the Xbox One...  why?  Because consumers mandated it.

Last edited by Chrkeller - on 07 July 2021