Alkibiádēs said:
Sony and MS did NOT give more quality first party games than Nintendo though. You can't give Sony and MS credit for third party games.
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Haha.... ok. Not gonna get into a subjective argument with you. As for the second part? why can't we give sony/MS credit for third party games? If they didn't make a platform that supports them or sell enough consoles to make their efforts worth it, those third party games would have gone somewhere else.
This may come as a shock to you, but a third party game is an exclusive to a console that doesnt't have it. And every exclusive a console doesn't have represents just another reason for someone to not buy said console.
Bajablo said:
resolution =! cost. size of said display is what drives cost.
does the phone come with 2 wireless controlers with NFC, some dope rumble thing, triggers, sticks, wireless transmitters... it has some of the stuff but you can turn the argument right back.. You pay for R&D costs.. phones have looked the same for a very long time so you could assume they don't spend as much developing them nowdays. I would assume the R&D for a console is higher
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Seriously, All that stuff you mention, weather you choose to believe it or not, are nowhere near as expensive as you think they are. Like you have no idea how cheap these components really are. But lets break it down a little..... take the amazon fire 7" tablet. That tablet has a 720p screen just like the NS, and that screen is 7" (bigger than that of the NS), it also has sensors and stuff....and I could give you its own list too if you want. It retails for under $60.
I'm not saying the switch costs $20/$100 to make....... I am simply trying to tell you and anyone else that cares to listen.... that it definately doesn't cost $300, $250 or even $220 to make. Now R&D costs I would give, cause we have no idea how much they spent on that... but even with that, the console business doesn't quite work like most others. Cause as I said earlier your business with nintendo "starts" the second you "buy" their console.
As they say, the first chip that comes off an intel fabrication plant may cost $5B, but every one that follows costs $10 per chip. With chip makers, phone makers... hell everything else makers..... they can and should mark up the price of every unit sold to make up for manufacturing costs, R&D, Marketing and of course a profit. Because the second you buy their product, their business with you is done.
With consoles however, they can afford to sell to you at lower margins or even at a loss because you buying their console just means they are now living in your pocket.
Here's something that may be shocking to you, do you know retailers typically stand to make more from selling actual software or game console accesories than whatever you think they make from selling the hardware?
TheWPCTraveler said:
I missed the point of the thread entirely, so I apologize. I thought of it the same way I thought NCL goes about, which is the opposite of what this thread is about.
That said, if Nintendo is serious with the whole "we have enough room to maneuver a price drop" business, then all things considered, the Switch tablet alone should cost below $140 to manufacture. Assumptions: Dock+Joy-Cons = $40 (+$10, due to how retailers and distributors work), price cut is off JP price ($260 pre-tax) and is ~$40. Retailer cut is assumed to be at 20%.
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Thats ok.
On actual console hardware, the retailer cut is nowhere near 20%. In the case of the Switch that would mean $60!!!!!! Think of it, the PS4 had a BOM of $384. But at retail was sold for $400. Sony were probably making a "profit" of around $6 on every console sold and the retailer was taking $10. If anything at all. The retailer gets their money from you buying games and accessories though. For every $60 game theretailer gets around $12-$15, on every controller ($15-$18 hardware sold for $60) the retailer gets around $20. In the gaming business.... thats where the real money is.
On th cost of the tablet alone,I think you are spot on, +/- $10 or so. For the dock+joy-cons+ grip, I would put all that all at around $50.
Now even if we add another like say $20 for unknow costs.. that brings the unit to around $210. Give the retailers $10 if you are feeling genourous, so thats $220. Tack on another $30 and call that nintendo's hardware profit (which mind you will be more per consol profit than any of the big three has ever charged...well exceptnintendo) and that brings it up to around $250.
This means at $299, nintendo is basically charging a $50 premium to buy their console.
No onehas to take my word for it, the console will come out in a few weeks, it will be torn apart and laid bare for all to see. I think a lot of people will be shocked how inexpensive it all will be on the inside.