| bdbdbd said: On topic: Was Reggie lying or not? You have to take into account if the numbers stated by Reggie were just calculated figures based on estimations, or real world figures. Was Reggie talking about regional numbers, or global numbers. Was Reggie's statement made as a COO of NOA, when the numbers included only the cost of what NOA pays for games/consoles and doesn't take into account what NCL pays for the manufacturing, whereas Iwata as a CEO have to take into account the costs and revenue as a whole. It's normal that a BAU or BU makes a shitload of profit, but the company as a whole posts losses (or the other way around). And typical for a "sales" division doing better than ever, at the same time the "manufacture" division spills red ink. Off topic: I'd expect Nintendo's tactics being that they are able to cut down costs before the competition arrives with their new consoles, so they'd be ready to go into a pricewar and make profit, where the competitors couldn't do the same. If the competition copycats Nintendo, competitors are going to lose money with an expensive controller/console, and if not, Nintendo is going to have the "edge" due to the controller. So, what makes Wii U so expensive? The gamepad should be rather expensive; even if it's "specs" would seem like nothing, there is quite a lot of tech inside, with the touchscreen, NFC, Wi-Fi, camera, mic, accelerometers, and of course it needs a processor of it's own. The CPU should contain "a lot" of cache, which is expensive. Internal memory is flash memory, and even if it's 8GB for Basic and 32GB for Premium, the cost per GB shoots sky-high, when you compare it to the cost per gigabyte on HDD's. And lastly; retail margins. As Wii sales dropped down due to lack of games, Nintendo isn't in the best position when negotiating the retail cut, so it should be expected that Nintendo had to cut it's own share in favour of retailers share for them to take the device on theis shelves. |
Think about what you said. You expect nintendo to be able to 1. drop the price of old technology before their competitors come out. 2. drop the price of the hardware in a price war. and 3. still make profits... wishful thinking. I called the same thing a long time ago about Sony but atleast Sony had blu-ray which drop in cost significantly rather quickly. What does Nintendo have that will reduce cost as fast?










