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Forums - Nintendo - 3DS costs 15$ more to produce than DSi

I don't see the problem here ...

The world economy is built around the concept that individuals will exchange more money to buy a product than it costs to manufacture; and the value of a product is (essentially) what people are willing to pay for an additional unit of this product from a manufacturer. Beyond a discussion on the viability of a product, the raw production costs are meaningless in the discussion of price it sells for. In everyday life we see countless examples of people gladly paying very high margins on products/services because they see greater value in the product/service than it costs a company to produce this product/service; and a classic example of this is beverages like coffee and soft-drinks where the production costs are almost negligible  and the sale price can end up being substantial.

With that said, one (potential) benefit for a consumer of a company like Nintendo maintaining a decent margin on their hardware is that they are (potentially) less motivated to maintain high costs elsewhere. As an example of what I mean, Sony and Microsoft increased licencing costs substantially on software sold on the HD consoles while Nintendo actually lowered licencing fees when they released the Wii; and the net effect was that licencing fees were substantially lower on the Wii than the HD consoles. This benefitted the consumer directly because they saved $10 per game released, and has the potential to benefit the consumer indirectly if it ensures that developers can be more profitable (because it would translate into stronger support).



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RolStoppable said:
good_boy said:

1-You started. Microsoft had nothing to do with this and yet, you had to bring Microsoft in.

2-If you made an argument and then you will end with that ignoring my entire post, you need to grow up. Growing old is mandatory; growing up is optional. Just a reminder :D

3-Putting Microsoft and Kinect is totally acceptable. It's nothing illogial, you are closed minded. If you think wii is the best console because is has sold the most, then you are wrong, my friend. Numbers don't matter. It doesn't affect any gamer, only fanboys. If numbers mattered, why aren't most of the critcally acclaimed games on the wii? It's a fact Xbox 360 has the most games this gen and guess what? It's not in first place and yet, it's the console with the most games and they are excelent games. If they sell, good but to me, the most important thing is that I enjoy them. I also played and enjoyed Nintendo games in the past with family and friends when I was a kid and I'm glad I did it, it was time well spent. Sure, Nintendo has Mario, Zelda, etc. but Microsoft also own their own franchises, Halo, Gears Of War, Forza, etc.

4-Continuning point 3 but now with Kinect. How can you say that? You know, everyone was mocking kinect games and now look, launch titles were well received because they are quality games. Again, you are being very closed minded, how can you be so sure those hardcore kinect titles will be bad? Didn't people learn something with the launch kinect titles? I'll repeat myself, intead of making silly arguments, be a man(unless you are a lady) and respond well.

3) and 4) You said the Wii has no games and is just a gimmick

Where did he say that? Perhaps I skipped one of his posts. Also, it is Super Street Fighter IV on the 3ds, not Street Fighter IV. As for why 3rd party devs do not make as many high quality games on the wii is beyond me, but my guess is that they figured out they could crap out games with tiny budgets and make the same, if not more money by doing so.

OT: Good for Nintendo. They managed to make the system cheap to manuafacture, yet have a reasonable price which still allows for high profit margins. Add this to the FINALLY bright 3rd party offerings for a Nintendo platform, 3d(which is gaining in popularity), and a more refined online experience, ensures that the 3ds will be a success, which I predict will outsell even the mighty ds.



"Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth." -My good friend Mark Aurelius

RolStoppable said:
good_boy said:

Great response. I appreciate it!

If you look at my response, I said I hate Nintendo(used to like it before), not the wii overall. My friends enjoy wii games, and since we have similar taste, I'm pretty sure that if I had a wii, I'll enjoy them as well. 

I didn't say I get angry because Nintendo makes money, I just said that I hate Nintendo because they are now an arrogant company, they always have aimed for great prices and still they have profits, people look to Nintendo for making affordable fun accessible consoles, how much was the gameboy? 100$ how much was the gbc? 100$ or less how much was the DS? 150$ no need to say it but still, the gamecube was the first console of that gen. to drop below 100$ All of that because Nintendo is to be a humble company. Nintendo's changed. They have become arrogant. Nintendo even killed their Player's choice program. Nintendo games are still 50$ and some of them are already 4 1/2 years old...zelda tp, Metroid Prime 3 i believe. Where's the respect for the consumer? What about people who can't afford a 50$ game and prefer to wait for a price drop? Screw microsoft, sony and other companies who overprices their products when they launch a new product. I wasn't bashing 3DS and its games, just nintendo and the price of the 3DS.

Then you bring in microsoft when this is about handhelds, it's a different market. It's no brainer that Nintendo has a lot of support when it comes to handhelds but when we talk about homeconsoles, support sucks.

When it comes to Kinect, there's no bias. You looked in fact extremely bias when I said Kinect and you may have thought that I wasn't serious and you just drop me 2 lines. You probably know everyone was mocking Kinect before launch and now that we have seen that Microsoft and developers can do, we can expect something good things when it comes to hardcore games. Microsoft is getting a lot of effort from 3rd party developers, something Nintendo has lost on the wii. I'm not saying either that they will be good, they could suck, we don't know and we can't say anything yet but you can't really be negative at Kinect when it has been proven it can do a lot of things. 

Charging prices you think the market will pay isn't a sign of arrogance. If the market isn't willing to pay that price and then the company blames the consumers, that is arrogance. In a similar way, a lot of games retail for a higher price than people are actually willing to pay, but that doesn't mean that the companies who published these titles are arrogant per se. If they think or hope that people pay that much for their product, then that's fine. If the price is too high, then it has to come down sooner or later anyway.

Regarding the end of Player's Choice, that really isn't all that bad for people who can't afford $50 games. In today's world it's easy to have access to the used games market, ebay or similar things. If you want games for cheap, there's a way. If you can't find Nintendo games for cheap (not even used), then that's because the market considers those titles of higher value than most other games.

Then what? Greedy? Money-hungry? You once again ignored what I said, I'll repeat myself: This IS Nintendo, in Nintendo's history, people look to Nintendo for making affordable fun accessible consoles, you are looking t what other companies do, not Nintendo. Be specific, Nintendo only, not what others do. Look at what Nintendo used to do and compare it to what it does now. You seem extremely bias, just look at what you bring in, the used market. Used market has always been there, it's not something of today's world, people go to any game retailer and get an used or new game, it's not something that was created when Nintendo launched the Nintendo Wii and decided to end the Player's choice line. There's also people know that buying new games will support the people who make those games because they like them and would like to see more of them or new things, they get them at full price or wait for a price drop or the player's choice line(platinum and GH for MS and Sony respectively) . If not, no one would be buying new stuff(games, consoles, accessories, etc.) to begin with. 3DS is not different, repeating myself, look at Nintendo history, their consoles has always been cheap, to be more specific, their handhelds, they have sold millions, have gotten a lot of profits and selling at affordable prices. But that has changed, Iwata stated that they are charging a lot for the 3DS because they can, because people would pay for that price. Good reason or not, looking back at the past, they have always have been selling millions of handhelds and getting a lot of profit. After many years of that, there's no really reason to change that. There's no point in charging more when you know you have always been good in that. Did Nintendo change? Yes. What could the reason be? Greediness.

Edit: Forgot to mention, I removed the kinect part for a little less scrolling and because there's no reason to talk about that, it's better to wait and see.



Somebody please tell me this is trolling.

 

The amount spent on RnD for a new console would be orders of magnitude higher than the amount spent on a new SKU. They are not comparable, nor are the software situations similar

 

Compare DS:Phat to 3DS or GTFO



good_boy said:
RolStoppable said:
good_boy said:

Great response. I appreciate it!

If you look at my response, I said I hate Nintendo(used to like it before), not the wii overall. My friends enjoy wii games, and since we have similar taste, I'm pretty sure that if I had a wii, I'll enjoy them as well. 

I didn't say I get angry because Nintendo makes money, I just said that I hate Nintendo because they are now an arrogant company, they always have aimed for great prices and still they have profits, people look to Nintendo for making affordable fun accessible consoles, how much was the gameboy? 100$ how much was the gbc? 100$ or less how much was the DS? 150$ no need to say it but still, the gamecube was the first console of that gen. to drop below 100$ All of that because Nintendo is to be a humble company. Nintendo's changed. They have become arrogant. Nintendo even killed their Player's choice program. Nintendo games are still 50$ and some of them are already 4 1/2 years old...zelda tp, Metroid Prime 3 i believe. Where's the respect for the consumer? What about people who can't afford a 50$ game and prefer to wait for a price drop? Screw microsoft, sony and other companies who overprices their products when they launch a new product. I wasn't bashing 3DS and its games, just nintendo and the price of the 3DS.

Then you bring in microsoft when this is about handhelds, it's a different market. It's no brainer that Nintendo has a lot of support when it comes to handhelds but when we talk about homeconsoles, support sucks.

When it comes to Kinect, there's no bias. You looked in fact extremely bias when I said Kinect and you may have thought that I wasn't serious and you just drop me 2 lines. You probably know everyone was mocking Kinect before launch and now that we have seen that Microsoft and developers can do, we can expect something good things when it comes to hardcore games. Microsoft is getting a lot of effort from 3rd party developers, something Nintendo has lost on the wii. I'm not saying either that they will be good, they could suck, we don't know and we can't say anything yet but you can't really be negative at Kinect when it has been proven it can do a lot of things. 

Charging prices you think the market will pay isn't a sign of arrogance. If the market isn't willing to pay that price and then the company blames the consumers, that is arrogance. In a similar way, a lot of games retail for a higher price than people are actually willing to pay, but that doesn't mean that the companies who published these titles are arrogant per se. If they think or hope that people pay that much for their product, then that's fine. If the price is too high, then it has to come down sooner or later anyway.

Regarding the end of Player's Choice, that really isn't all that bad for people who can't afford $50 games. In today's world it's easy to have access to the used games market, ebay or similar things. If you want games for cheap, there's a way. If you can't find Nintendo games for cheap (not even used), then that's because the market considers those titles of higher value than most other games.

Then what? Greedy? Money-hungry? You once again ignored what I said, I'll repeat myself: This IS Nintendo, in Nintendo's history, people look to Nintendo for making affordable fun accessible consoles, you are looking t what other companies do, not Nintendo. Be specific, Nintendo only, not what others do. Look at what Nintendo used to do and compare it to what it does now. You seem extremely bias, just look at what you bring in, the used market. Used market has always been there, it's not something of today's world, people go to any game retailer and get an used or new game, it's not something that was created when Nintendo launched the Nintendo Wii and decided to end the Player's choice line. There's also people know that buying new games will support the people who make those games because they like them and would like to see more of them or new things, they get them at full price or wait for a price drop or the player's choice line(platinum and GH for MS and Sony respectively) . If not, no one would be buying new stuff(games, consoles, accessories, etc.) to begin with. 3DS is not different, repeating myself, look at Nintendo history, their consoles has always been cheap, to be more specific, their handhelds, they have sold millions, have gotten a lot of profits and selling at affordable prices. But that has changed, Iwata stated that they are charging a lot for the 3DS because they can, because people would pay for that price. Good reason or not, looking back at the past, they have always have been selling millions of handhelds and getting a lot of profit. After many years of that, there's no really reason to change that. There's no point in charging more when you know you have always been good in that. Did Nintendo change? Yes. What could the reason be? Greediness.

Edit: Forgot to mention, I removed the kinect part for a little less scrolling and because there's no reason to talk about that, it's better to wait and see.

If you adjust exchange rates between the Japanese Yen and American dollar back to 2004 levels, the 3DS would cost (roughly) $179US; If you adjust exchange rates between the Japanese Yen and American dollar back to 2000 levels, the 3DS would cost (roughly) $150US. The question I have to ask is how much of this outrage for Nintendo supposedly changing their strategy should really be directed at your government for mismanaging the economy for over a decade?

The reason I ask is because, regardless of the region I have looked at, the biggest chunk of the price apprieciation of the 3DS appears to be related to how that regions currency has changed relative to the yen.



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HappySqurriel said:
good_boy said:
RolStoppable said:
good_boy said:

Great response. I appreciate it!

If you look at my response, I said I hate Nintendo(used to like it before), not the wii overall. My friends enjoy wii games, and since we have similar taste, I'm pretty sure that if I had a wii, I'll enjoy them as well. 

I didn't say I get angry because Nintendo makes money, I just said that I hate Nintendo because they are now an arrogant company, they always have aimed for great prices and still they have profits, people look to Nintendo for making affordable fun accessible consoles, how much was the gameboy? 100$ how much was the gbc? 100$ or less how much was the DS? 150$ no need to say it but still, the gamecube was the first console of that gen. to drop below 100$ All of that because Nintendo is to be a humble company. Nintendo's changed. They have become arrogant. Nintendo even killed their Player's choice program. Nintendo games are still 50$ and some of them are already 4 1/2 years old...zelda tp, Metroid Prime 3 i believe. Where's the respect for the consumer? What about people who can't afford a 50$ game and prefer to wait for a price drop? Screw microsoft, sony and other companies who overprices their products when they launch a new product. I wasn't bashing 3DS and its games, just nintendo and the price of the 3DS.

Then you bring in microsoft when this is about handhelds, it's a different market. It's no brainer that Nintendo has a lot of support when it comes to handhelds but when we talk about homeconsoles, support sucks.

When it comes to Kinect, there's no bias. You looked in fact extremely bias when I said Kinect and you may have thought that I wasn't serious and you just drop me 2 lines. You probably know everyone was mocking Kinect before launch and now that we have seen that Microsoft and developers can do, we can expect something good things when it comes to hardcore games. Microsoft is getting a lot of effort from 3rd party developers, something Nintendo has lost on the wii. I'm not saying either that they will be good, they could suck, we don't know and we can't say anything yet but you can't really be negative at Kinect when it has been proven it can do a lot of things. 

Charging prices you think the market will pay isn't a sign of arrogance. If the market isn't willing to pay that price and then the company blames the consumers, that is arrogance. In a similar way, a lot of games retail for a higher price than people are actually willing to pay, but that doesn't mean that the companies who published these titles are arrogant per se. If they think or hope that people pay that much for their product, then that's fine. If the price is too high, then it has to come down sooner or later anyway.

Regarding the end of Player's Choice, that really isn't all that bad for people who can't afford $50 games. In today's world it's easy to have access to the used games market, ebay or similar things. If you want games for cheap, there's a way. If you can't find Nintendo games for cheap (not even used), then that's because the market considers those titles of higher value than most other games.

Then what? Greedy? Money-hungry? You once again ignored what I said, I'll repeat myself: This IS Nintendo, in Nintendo's history, people look to Nintendo for making affordable fun accessible consoles, you are looking t what other companies do, not Nintendo. Be specific, Nintendo only, not what others do. Look at what Nintendo used to do and compare it to what it does now. You seem extremely bias, just look at what you bring in, the used market. Used market has always been there, it's not something of today's world, people go to any game retailer and get an used or new game, it's not something that was created when Nintendo launched the Nintendo Wii and decided to end the Player's choice line. There's also people know that buying new games will support the people who make those games because they like them and would like to see more of them or new things, they get them at full price or wait for a price drop or the player's choice line(platinum and GH for MS and Sony respectively) . If not, no one would be buying new stuff(games, consoles, accessories, etc.) to begin with. 3DS is not different, repeating myself, look at Nintendo history, their consoles has always been cheap, to be more specific, their handhelds, they have sold millions, have gotten a lot of profits and selling at affordable prices. But that has changed, Iwata stated that they are charging a lot for the 3DS because they can, because people would pay for that price. Good reason or not, looking back at the past, they have always have been selling millions of handhelds and getting a lot of profit. After many years of that, there's no really reason to change that. There's no point in charging more when you know you have always been good in that. Did Nintendo change? Yes. What could the reason be? Greediness.

Edit: Forgot to mention, I removed the kinect part for a little less scrolling and because there's no reason to talk about that, it's better to wait and see.

If you adjust exchange rates between the Japanese Yen and American dollar back to 2004 levels, the 3DS would cost (roughly) $179US; If you adjust exchange rates between the Japanese Yen and American dollar back to 2000 levels, the 3DS would cost (roughly) $150US. The question I have to ask is how much of this outrage for Nintendo supposedly changing their strategy should really be directed at your government for mismanaging the economy for over a decade?

The reason I ask is because, regardless of the region I have looked at, the biggest chunk of the price apprieciation of the 3DS appears to be related to how that regions currency has changed relative to the yen.

I'm pretty sure we already know that. You are not giving me relevant info. I suggest you to read the opening, it doesn't give an exact number(reason at opening too) but it's estimated.



Viper1 said:
SpartenOmega117 said:

Don't like how apple does this and certainly don't like nintendo does this as well. oh well I guess i will wait for a price cut na dthe redesign that will come a year or two later.


A little lesson in price.  Most people think of price as an initial payment and nothing more.  But when you actually look at price as a value over the life fo the console, things change.

Say at launch it's $250 and you own the console for 6 years (new system, new model, new color, just don't use it anymore).  That's a $41.6 per year investment.  Or $3.47 per month investment.

Now say you wait 2 years for a new model and it drops to about $200.  Now you get 4 years out of it.  That's a $50 .00 per year investment.  Or $4.16 per month.

Suddenly by waiting 2 years, you are actually paying more for the time span you use the system AND you've missed out on 2 years worth of gaming.  Not sure about you but waiting doesn't sound like a very good idea.


Lol that was some good annalizing lol 

Best post of the hole thread.



Yeah everyone should sell everything for cost or free!

I have customers argue to my face, that they should only have to pay around cost for that guitar because, "it's just some wood, it can't cost that much to make, Company X is just greedy" when I know how much R&D, transportation of material, and plain old fashion WORK from the company went in to making it, it's worth every penny. I guess some people just didn't take a intro to buisness or economics class in their life.

I bought the 3DS day one, knowing full well that it'll drop in price eventually, because TO ME it was worth $250. The worth of something is much more than just the sum of it's costs.



LISTEN TO THE FIRST WORLD PODCAST REAL GAMERS, REAL AWESOME

Albion said:
Viper1 said:
SpartenOmega117 said:

Don't like how apple does this and certainly don't like nintendo does this as well. oh well I guess i will wait for a price cut na dthe redesign that will come a year or two later.


A little lesson in price.  Most people think of price as an initial payment and nothing more.  But when you actually look at price as a value over the life fo the console, things change.

Say at launch it's $250 and you own the console for 6 years (new system, new model, new color, just don't use it anymore).  That's a $41.6 per year investment.  Or $3.47 per month investment.

Now say you wait 2 years for a new model and it drops to about $200.  Now you get 4 years out of it.  That's a $50 .00 per year investment.  Or $4.16 per month.

Suddenly by waiting 2 years, you are actually paying more for the time span you use the system AND you've missed out on 2 years worth of gaming.  Not sure about you but waiting doesn't sound like a very good idea.


Lol that was some good annalizing lol 

Best post of the hole thread.

Yeah that was really good analyzing lol never thought about that way ever since i got my launch PS3($600 which i dont regret). Although i could understand the whole apple thing I mean $2000 for a Macbook Pro, no thanks.



Alby_da_Wolf said:

Ninty's profit margin is very modest compared to Apple.


Not really.

3DS BoM is about 40% of MSRP. iPhone comes in lower at 30% of MSRP, but the iPad runs around 50% of MSRP and seems to have a profit margin on par with the Mac and iPod lines.

Microsoft makes both of them look like chump amateurs, though. BoM for a copy of Windows 7 is probably 5% of the MSRP or less. Those profiteering price-gougers!



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
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