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Forums - Gaming - It's a bad thing the Switch isn't being sold at a loss?

I haven´t Heard that criticism much but selling at a loss is always idiotic since you never know how sales will stack up compared to the competition and could set yourself up to lose a lot of Money and maybe even forcing you out of the business (Sega, even though they had other issues aswell).

If, however, they are successful, it will only strenghten their ability to stay competitive in the industry.



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TheWPCTraveler said:
Intrinsic said:
To help shed some more light on this.....

take the samsung galaxy s7 comes with 64GB (more than the NS) of storage, a battery, both front and rear cameras, 4GB of Ram (same type and amount of ram in the NS) a more expensive SOC (yes its processor costs more than the tegra used in the NS), fingerprint sensor, and a QHD screen (4 times the resolution of the screen in the NS)

All that, costs under $255. Any iphone you see costs under $270 to make.

So why exactly does the NS cost $299 again?

That is the "bill of parts." In other words, you ignored labour costs, shipping costs, and the cut that the retailer/distributor receives upon sale. You're also ignoring the massive amount of money it takes to perform R&D to create the device and properly market the damn thing (though that is not a cost that directly scales with the quantity of devices sold).

By the way, your S7 costs $500 on Amazon. And it released last year. I'd hazard a guess that a device of that caliber from Samsung would cost $300 by holiday 2018, but the Switch will also most likely have gone down in price by that point.

You also ignored that the Switch has a larger battery, a fan inside, and comes with a controller. It also comes with a(n overpriced) dock. (The Switch should've just come with a 6" 1080p screen just to take advantage of display manufacturers mass production, to scale prices down better, but that's just me).

So why does the Switch cost $299, again? Even with all that I said, I still don't see myself paying more than $250 for it, but I can see how it's priced that way.

No..... thats the same breakdown of costs used for things like the PS4 when it launched. The PS4 came in at $384 when it launched back in 2013.

And the bolded part..... you do realize what the key difference between smartphones and game devices are right? With one your business with them ends after purchase, with the other your business with them starts after purchase.

I don't know why people seem to think that peices of plastic (with a board, chip and sensors) controllers are expensive. They aren't, the PS4 controller, for all its motion sensing, trackpad, sticks, buttons lights, batteries...etc doesn't cost more than $16 to make.

Anyways, forget about all this.No point.....



vivster said:

So you like when you as the consumer get a worse deal than you could've had?

Honestly? I don't like that everything costs money. I deserve free stuff, dang it.



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Well, it's really expensive, so a higher price tag can turn away customers, less customers means less sales for games especially 3rd party and less games means less potential customers

Not selling at a loss is good, but Nintendo needs to get out of this loop they had with the Wii U



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I havent seen thst criticism. Only thst the asking price is too high.



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RolStoppable said:
Intrinsic said:

Well thanks for helping us make the point then. Nintendo is making everyone pay a premium. Since its made the first portable gaming device you can plug to a T....oh wait.

Do you actually want to have a serious discussion or are you content with fooling around?

Switch is clearly not a portable gaming device that you can plug to a TV, because it offers the expected staples of home console gaming, like splitscreen multiplayer for up to four players. It's a fully functioning hybrid that can work as home console or handheld. There's nothing else like it on the market.

Let's not really kid ourselves though. People are not buying it because it's the only hybrid. They're buying it because it's the only device with new Nintendo games. That's why it's unique and that's the only reason people are buying it.



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Slarvax said:
vivster said:

So you like when you as the consumer get a worse deal than you could've had?

Honestly? I don't like that everything costs money. I deserve free stuff, dang it.

That's the right attitude though. It's upon the companies to make an enticing offer. If the company makes a product that people would only take for free then that's a good enough reason to sell it as a loss. Seeing how other manufacturers have done this it's an absolutely resonable expectation that the company sells the hardware at a loss.

So in summary, yes, it is a bad thing compared to other manufacturers who offer more value for the same price. It's a valid point when comparing products. Not selling it at a loss and as such having a higher price than the customer compares its value is indeed a bad thing for the customer.

There is absolutely no need or benefit to defend companies in their financial decisions. Of course they can do what they want but they're always open for criticism. Seeing how so many people criticize the Switch for its price it seems to have merit.



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Honestly I think that the unit itself is sold at loss. The profit is in everything else that comes with the consol. That's why the hefty price tag for those if you want to buy them separately.



Being sold at a loss turned out very well for systems like the PS2, but I don't think it means much that the same is not happening with the Switch.



                
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RolStoppable said:
vivster said:

Let's not really kid ourselves though. People are not buying it because it's the only hybrid. They're buying it because it's the only device with new Nintendo games. That's why it's unique and that's the only reason people are buying it.

That's fine with me, because it doesn't change that it's okay for Nintendo to charge as much as they do. If people insist on lower prices, they must realize that either proper competition is needed to push the prices down or disinterest in the product must be high enough to force the company to cut the price. That's how the market works.

In Switch's case, option 1 isn't going to happen, so the hopes rest entirely on option 2.

This is a semantic problem. Of course it is "ok" for the company, they can do whatever the hell they want. However the consumer had made his voice heard that he doesn't find the price "ok" at all. That's what it's about. No matter what a company does, it's absolutely fair to criticize. The market situation does not absolve from criticism and if any company needs more of it to get their act together it's Nintendo.

This thread says it's not a point worth criticising, which apparently a lot of people disagree with seeing the backlash to the price.



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