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Forums - Gaming - I don't get why we can't just co-exist peacefully!?

MTZehvor on 03 December 2013
toastboy44562 said:
MTZehvor said:
ps4tw said:
MTZehvor said:
ps4tw said:
MTZehvor said:
ps4tw said:
Figgycal said:
ps4tw said:
dahuman said:
Innovation doesn't exist without competition.


Thats crap as what actually drives innovation is the customer

Because the consumer has a choice - hence competition.


lol why you acting as if though you need to buy a console. If they dont like it they wont buy it so the customer drives innovation with their wallet. 

Most of the consumers in this market do want to buy a gaming console, however. Without competition, a company can merely re-release the same product with little to no innovation without fear of another company coming in and stealing their sales. Some customers will likely choose to buy no console over an overpriced, non-innovative one, but the big thing that drives economic innovation in any field, not just video games, is competition.

There's an interesting slideshow about the amount of deadweight loss created by monopolistic firms (or really any imperfect competition). The sole firm selling these consoles will be an almost complete price setter. The firms in the market now are certainly not perfect examples of price takers, but they're much more constrained by how much they can charge and how much they have to innovate as opposed to how they would be without competition.


Want, not need, so their want dictates innovation, whereas need would allow companies to exploit a necessity. 

....yyyyeeesssss...

No one here is claiming that the American population will die out or something if there's no video game consoles around. All of this has to do with people's desires.


exactly, we are talking about consoles not healthcare

Right, but the demand curve in reference here isn't one that's completely inelastic. There are some people who will purchase video game consoles above the market price as is, and those are the ones who would be affected.

What he's trying to say is there will be dead weight loss. Less consumer surplus and more producer surplus.

Essentially this, although ps4tw seems to be arguing against the concept of dead weight loss for elastic goods entirely.



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toastboy44562 on 03 December 2013
MTZehvor said:
toastboy44562 said:
MTZehvor said:
ps4tw said:
MTZehvor said:
ps4tw said:
MTZehvor said:
ps4tw said:
Figgycal said:
ps4tw said:
dahuman said:
Innovation doesn't exist without competition.


Thats crap as what actually drives innovation is the customer

Because the consumer has a choice - hence competition.


lol why you acting as if though you need to buy a console. If they dont like it they wont buy it so the customer drives innovation with their wallet. 

Most of the consumers in this market do want to buy a gaming console, however. Without competition, a company can merely re-release the same product with little to no innovation without fear of another company coming in and stealing their sales. Some customers will likely choose to buy no console over an overpriced, non-innovative one, but the big thing that drives economic innovation in any field, not just video games, is competition.

There's an interesting slideshow about the amount of deadweight loss created by monopolistic firms (or really any imperfect competition). The sole firm selling these consoles will be an almost complete price setter. The firms in the market now are certainly not perfect examples of price takers, but they're much more constrained by how much they can charge and how much they have to innovate as opposed to how they would be without competition.


Want, not need, so their want dictates innovation, whereas need would allow companies to exploit a necessity. 

....yyyyeeesssss...

No one here is claiming that the American population will die out or something if there's no video game consoles around. All of this has to do with people's desires.


exactly, we are talking about consoles not healthcare

Right, but the demand curve in reference here isn't one that's completely inelastic. There are some people who will purchase video game consoles above the market price as is, and those are the ones who would be affected.

What he's trying to say is there will be dead weight loss. Less consumer surplus and more producer surplus.

Essentially this, although ps4tw seems to be arguing against the concept of dead weight loss for elastic goods entirely.

PS4 is priced too cheaply right now causing a consumer surplus thus having dead weight loss.



wangjingwanjia on 03 December 2013

Competition is valuable and a need for the society, or else we will end up with monopolies in each market.





黑色沙漠 - Black Desert - 검은사막

 

Cobretti2 on 03 December 2013

lol at who the OP is and at the topic considering what the other topics have been recently.



 

 

Zappykins on 03 December 2013

Cause some lack character and confidence?

Just my guess. Why else would you go into a thread where one isn't interested.



 

Really not sure I see any point of Consol over PC's since Kinect, Wii and other alternative ways to play have been abandoned. 

Top 50 'most fun' game list coming soon!

 

Tell me a funny joke!
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MTZehvor on 03 December 2013
toastboy44562 said:
MTZehvor said:
toastboy44562 said:
MTZehvor said:
ps4tw said:
MTZehvor said:
ps4tw said:
MTZehvor said:
ps4tw said:
Figgycal said:
ps4tw said:
dahuman said:
Innovation doesn't exist without competition.


Thats crap as what actually drives innovation is the customer

Because the consumer has a choice - hence competition.


lol why you acting as if though you need to buy a console. If they dont like it they wont buy it so the customer drives innovation with their wallet. 

Most of the consumers in this market do want to buy a gaming console, however. Without competition, a company can merely re-release the same product with little to no innovation without fear of another company coming in and stealing their sales. Some customers will likely choose to buy no console over an overpriced, non-innovative one, but the big thing that drives economic innovation in any field, not just video games, is competition.

There's an interesting slideshow about the amount of deadweight loss created by monopolistic firms (or really any imperfect competition). The sole firm selling these consoles will be an almost complete price setter. The firms in the market now are certainly not perfect examples of price takers, but they're much more constrained by how much they can charge and how much they have to innovate as opposed to how they would be without competition.


Want, not need, so their want dictates innovation, whereas need would allow companies to exploit a necessity. 

....yyyyeeesssss...

No one here is claiming that the American population will die out or something if there's no video game consoles around. All of this has to do with people's desires.


exactly, we are talking about consoles not healthcare

Right, but the demand curve in reference here isn't one that's completely inelastic. There are some people who will purchase video game consoles above the market price as is, and those are the ones who would be affected.

What he's trying to say is there will be dead weight loss. Less consumer surplus and more producer surplus.

Essentially this, although ps4tw seems to be arguing against the concept of dead weight loss for elastic goods entirely.

PS4 is priced too cheaply right now causing a consumer surplus thus having dead weight loss.

I agree, almost every console at launch is priced too cheaply to avoid all deadweight loss. I was just simply stating that another person seems to be arguing against the concept of deadweight loss to begin with.



SlayerRondo on 03 December 2013
toastboy44562 said:
dahuman said:
Innovation doesn't exist without competition.


Unless you're in russia


There was competition, just severly restricted.

And the innovation was lacking and extremely costly during the soviet era.



This is the Game of Thrones

Where you either win

or you DIE

SlayerRondo on 03 December 2013

People have limited money so there has to be competition.

And if Nintendo stops making consoles they wont vanish, you will just see their games go to all other platforms where they will reach a much larger market.



This is the Game of Thrones

Where you either win

or you DIE

Damian.W on 03 December 2013

I would say that arguing is actually just part of human biological nature. We all want to feel superior in some way, including in the things we buy.
Or maybe console gamers just have no lives and have sold their souls to corporations. Who knows?



I <3 Classic Platformers!

Multi-console Owner FTW

toastboy44562 on 03 December 2013
MTZehvor said:
toastboy44562 said:
MTZehvor said:
toastboy44562 said:
MTZehvor said:
ps4tw said:
MTZehvor said:
ps4tw said:
MTZehvor said:
ps4tw said:
Figgycal said:
ps4tw said:
dahuman said:
Innovation doesn't exist without competition.


Thats crap as what actually drives innovation is the customer

Because the consumer has a choice - hence competition.


lol why you acting as if though you need to buy a console. If they dont like it they wont buy it so the customer drives innovation with their wallet. 

Most of the consumers in this market do want to buy a gaming console, however. Without competition, a company can merely re-release the same product with little to no innovation without fear of another company coming in and stealing their sales. Some customers will likely choose to buy no console over an overpriced, non-innovative one, but the big thing that drives economic innovation in any field, not just video games, is competition.

There's an interesting slideshow about the amount of deadweight loss created by monopolistic firms (or really any imperfect competition). The sole firm selling these consoles will be an almost complete price setter. The firms in the market now are certainly not perfect examples of price takers, but they're much more constrained by how much they can charge and how much they have to innovate as opposed to how they would be without competition.


Want, not need, so their want dictates innovation, whereas need would allow companies to exploit a necessity. 

....yyyyeeesssss...

No one here is claiming that the American population will die out or something if there's no video game consoles around. All of this has to do with people's desires.


exactly, we are talking about consoles not healthcare

Right, but the demand curve in reference here isn't one that's completely inelastic. There are some people who will purchase video game consoles above the market price as is, and those are the ones who would be affected.

What he's trying to say is there will be dead weight loss. Less consumer surplus and more producer surplus.

Essentially this, although ps4tw seems to be arguing against the concept of dead weight loss for elastic goods entirely.

PS4 is priced too cheaply right now causing a consumer surplus thus having dead weight loss.

I agree, almost every console at launch is priced too cheaply to avoid all deadweight loss. I was just simply stating that another person seems to be arguing against the concept of deadweight loss to begin with.

I don't think you get what I meant. If sony can sell all PS4 units at 500 dollars for example, and consumers are willing to pay 500 dollars and Sony is meeting demand exactly with supply meets that means there is no dead weight loss. The fact that more people are waiting for ps4 units at 400 dollars means sony is not selling at an effecient price. consumer profit is not being maximized meaning there is dead weight loss on the producer side and a surplus on the consumer side.

Edit: I'm not including revenue from compliments that go with the PS4 though. Because people are spending less on the console, the quantity demanded for subscriptions and games goes up. This makes up for the 100 dollar+ deadweight loss I'm sure.