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drkohler said:
DonFerrari said:

Let's say UK/Euro tax is about 10%.

It's actually easy to check that. Sales taxes in Euroland are between 16% and 26%. Prices also include store margins (there are laws against shops selling regular stuff below self costs). So Sony/MS/Ninty gets about 70% at best of what is advertised in shops.

Sony probably lost some money prior to the price hike and now gets away roughly +/- 0

In recent weeks, Microsoft has been losing a shi*ton of money selling their consoles at 200/300 Euros (hence why Spencer threw in that $100-$200 loss per console recently, and that was before the bigrebates)

Nintendo makes a shi*ton of money on hardware, that thing is dirt cheap to manufacture.

And looking at the Covid situation developing in China, it could very well be that production of consoles is going to tank in 2023.

Thank you for the additional data. So it seems that even after the price increase they still make significantly less money (perhaps even lose) in console sold in Europe, that would explain why with limited supply they prioritize USA.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."