Miyamotoo said:
Intrinsic said: If Nintendo is making a console that they sell for $300? And I'm talking about a basic traditional console. And that console is being sold for any kinda profit, then there is no kinda sorcery they can do to make it more powerful than the PS4.
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PS4 was launch in 2013. with $399 price, after only few months Sony said they are selling it with profit. So I really don't see why is impossible that Nintendo 3 years after PS4 launch, launch little stronger console with $299 price point and make profit!?
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A couple of reasons.
1. You really must not know Nintendo. Nintendo has never adopted the loss leader model of console selling. So they always aim to make a profit on their hardware.
2. In fall 2016. The PS4 could very well be selling for $250. And that's under the assumption that Sony is either breaking even or making a profit anywhere between $20-$40 per unit at that price. The important thing to note here is that hardware built to the spec of the PS4 (and assuming you even have the engineering muscle of something like Sony behind you) WILL have a BOM of around $210-$250 at the time. So of Nintendo makes something very similar to the ps4 that's what it will cost them too. If they make something more powerful then it will cost them more. And more is not good, cause remember point 1. Especially when talking about Nintendo.
3. The NX isn't without competition. Its coming into a race at a time when the consoles already out are just hitting their mainstream stride. It will be going up against a PS4 with an install base of around 45M at the time and an XB1 at around 25M. Having just abandoned its last console in around 4yrs. It cannot afford to come in being the most expensive box on the block especially if all its doing is offering slightly better framerstes than the PS4. The PS2 was proof enough that you don't need to have the most powerful console on the market to win. If Nintendo comes in at $300, and Sony decides to take a git of $40 on every console they sell and drop the price of the PS4 to $199 (which they could) and with the kinda lineup Sony has next year and all that VR stuff.... nintendo will be DOA.
All this aside, I personally think its just a flat out stupid idea for Nintendo to launch a console next year. But what do I know?