Immortal said:
Your point being? Your analysis shows that a 360 costs $105-135 to make and Kinect costs $56 to make. The Wii, according to my source, cost $88 to make back in July 2009. Nintendo can go lower than MS - and that's not accounting for any manufacturing costs they cut in the past year and a half. They're probably right above Kinect costs by now. A $80 Kinect and a $150 360 (or even a $199 K360) couldn't combat a $99 (heck, prolly lower) Wii. |
The Wii wouldn't have dropped by much. The cheaper an object gets, the slower the costs are able to be reduced. That and the Wii has added new colors and WiiMotionPlus as well to add slightly to their production costs per unit since then.
My analysis showed that a K360 (as you so very nicely called it, I think I'll use this now!) could be as low as $179 (or lower if MS is really ballsy and goes for a $99 Arcade 360 which should break even). Obviously a K360 would not be able to directly compete with a $99 Wii, but a $99-129 stand alone 360 could. The Kinect is the new hot item while the Wii is losing some of it's luster with the casual crowd. Nintendo is also not the type of company that does drastic price moves to sell hardware. They could have made cuts at any point the last few years but didn't. They focus a lot more on profitable hardware than Sony or MS.
Still, maybe I was a bit hastey in saying the 360 could cut MORE off than the Wii. It can cut more off than the PS3 and I still feel the 360 price cuts would see the most impact.
(for hardware sales) Forfeit is control over others avatar for 1 week.
