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

Alkibiádēs said:
m_csquare said:

so he looked down but came to the governor ball event??? seriously just stop

Did you even read the quote I gave you? Watch some documentaries about the man himself if you don't believe me. 

and you also ignore the fact that he hates the whole event because of political reason



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naruball said:
Alkibiádēs said:

Are you seriously saying the game deserves a metacritic score of 98%? 

The fact that game publishers buy all the advertisement space on gaming sites doesn't bother you at all? All-right then... 

Please tell me where I said either thing. Also, why you felt the need to ignore all of my points and to make some of your own to present them as mine.

I'll wait.

All you proved was that big brands sell well by virtue of their name alone. Quality rarely goes hand in hand with mainstream success. 



"The strong do what they can and the weak suffer what they must" - Thoukydides

Alkibiádēs said:
naruball said:

Please tell me where I said either thing. Also, why you felt the need to ignore all of my points and to make some of your own to present them as mine.

I'll wait.

All you proved was that big brands sell well by virtue of their name alone. Quality rarely goes hand in hand with mainstream success. 

Feel free to believe whatever you want. If you don't want to have a proper discussion (by replying to actual points instead of coming up with your own that I never said) you can argue with someone who puts up with that. I'm done wasting my time here.



naruball said:
Alkibiádēs said:

All you proved was that big brands sell well by virtue of their name alone. Quality rarely goes hand in hand with mainstream success. 

Feel free to believe whatever you want. If you don't want to have a proper discussion (by replying to actual points instead of coming up with your own that I never said) you can argue with someone who puts up with that. I'm done wasting my time here.

You didn't bring up any points, you just used a sales argument. I guess MacDonalds is a better restaurant than a restaurant with 3 stars... /s

You can literally sell a turd in a box if you market it right. 

As a matter of fact, someone actually did exactly that. 



"The strong do what they can and the weak suffer what they must" - Thoukydides

Alkibiádēs said:

And they sell the Galaxy S7 for €600 in my country. What point are you trying to make exactly? Iphones are even more expensive to buy. 

Also we don't know what exactly is inside the Switch and it also has a lot of technology that the Galaxy S7 doesn't have. 

Are you also aware of how R & D works? It's factored into the price. 

And all this clearly shows is that you didn't read the subsequents posts before you made this post.

As I have tried to explain multiple times, the reason Phone companies can mark up their prices from $255 that it costs them to make it and sell it for $600, is because your business with them ends after you buy that phone. Consoles work differently, you business starts with them after you buy their console. More of the reason why consoles, unlike phones....  can afford to sell through at significantly lower margins or even at a loss, cause they know they will get way more than that money back through software sales and accessories over the next 1-6years of living in your pocket.

 

TheWPCTraveler said:

We'll all see in four weeks. I italicized what I learned today. I always thought that the cut was bigger in order to allow for a larger room for error (i.e. price drops without pissing off retailers).

The $140 estimate is all taking into account the 20% margin earlier, and if that is taken off the table, that immediately shoots up to $180. If the price of manufacturing is anywhere close to that, given the rumored specs, I'll be shocked at just how incompetent Nintendo really is at sourcing components (not learning from the Wii U says a lot).

Thats ok, I think its a fairly common misconception of how these things work. But yh, retailers are kinda always protected though. Its really all a system that varies from the size of the retailer. There are three main forms,

  1. the retailer pays nothing up front and just puts  in a request from the manufacturer and pays the manufacturer after its sold a certain number of items. (really big companies can do this, amazon...etc)
  2. wholesale controlled credit or stock with supplier credit is the system used for smaller stores. here the retailer has a credit with the manufacturer that allows them "qualify" to recieve a certain amount of stock.
  3. Pay outright...... this one is kinda self explanatory. You pay outright to the manufacturer for the items. This system is most easily affected by price flutuations, but the manufacturers have wasys to keep their clients happy, usually be subtracting the difference of their loss from their next order.
With the first two systems, it will make absolutely no differnce to the retailer how much the item is sold for or if its price changes or not.


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Intrinsic said:
Alkibiádēs said:

And they sell the Galaxy S7 for €600 in my country. What point are you trying to make exactly? Iphones are even more expensive to buy. 

Also we don't know what exactly is inside the Switch and it also has a lot of technology that the Galaxy S7 doesn't have. 

Are you also aware of how R & D works? It's factored into the price. 

And all this clearly shows is that you didn't read the subsequents posts before you made this post.

As I have tried to explain multiple times, the reason Phone companies can mark up their prices from $255 that it costs them to make it and sell it for $600, is because your business with them ends after you buy that phone. Consoles work differently, you business starts with them after you buy their console. More of the reason why consoles, unlike phones....  can afford to sell through at significantly lower margins or even at a loss, cause they know they will get way more than that money back through software sales and accessories over the next 1-6years of living in your pocket.

 

TheWPCTraveler said:

We'll all see in four weeks. I italicized what I learned today. I always thought that the cut was bigger in order to allow for a larger room for error (i.e. price drops without pissing off retailers).

The $140 estimate is all taking into account the 20% margin earlier, and if that is taken off the table, that immediately shoots up to $180. If the price of manufacturing is anywhere close to that, given the rumored specs, I'll be shocked at just how incompetent Nintendo really is at sourcing components (not learning from the Wii U says a lot).

Thats ok, I think its a fairly common misconception of how these things work. But yh, retailers are kinda always protected though. Its really all a system that varies from the size of the retailer. There are three main forms,

 

  1. the retailer pays nothing up front and just puts  in a request from the manufacturer and pays the manufacturer after its sold a certain number of items. (really big companies can do this, amazon...etc)
  2. wholesale controlled credit or stock with supplier credit is the system used for smaller stores. here the retailer has a credit with the manufacturer that allows them "qualify" to recieve a certain amount of stock.
  3. Pay outright...... this one is kinda self explanatory. You pay outright to the manufacturer for the items. This system is most easily affected by price flutuations, but the manufacturers have wasys to keep their clients happy, usually be subtracting the difference of their loss from their next order.
With the first two systems, it will make absolutely no differnce to the retailer how much the item is sold for or if its price changes or not.

 

Except that's not true at all. Apple, for example, makes a lot of money from Apple App Store. A lot more than what Nintendo or Sony are making...



"The strong do what they can and the weak suffer what they must" - Thoukydides

Only time will tell. But looking back at the Wii U I would say yes.



I don't think the average consumer cares one way or another whether the console manufacturer is making a profit. They only care about the value the system provides them for the money. If you are into Nintendo first-party games, or the ability to play the same console at home and on-the-go is a high priority to you, then Switch provides a lot of value.

In my opinion (which isn't worth anything), $299 (and even more expensive overseas) plus the high accessory cost and no bundled game puts Switch outside of the "impulse buy" range for most consumers. If I was a third party developer, this would concern me a little bit because I'd worry that Nintendo is prioritizing their own short-term financial health over increasing the install base of the system.

It's quite possible that Switch ends up supply-constrained for the first year though, so I guess we will see what the true value of the system is by what scalpers end up charging for it.



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?

This argument makes no sense. The Switch is a product that does more for than the Iphone and Samsung Galaxy despite the fact that it costs less to produce and the profit margin is much smaller. If anything, you are proving why the Switch SHOULD be 300$. Because even if it's 200$ to make(which I even have doubts about it being that low) it's profit margin would only be 100$ as opposed to a phone which offers more features, sure, but gets sold for ridiculously more new. So if anything, you're making Nintendo look fairer with this comparison.



AngryLittleAlchemist said:

This argument makes no sense. The Switch is a product that does more for than the Iphone and Samsung Galaxy despite the fact that it costs less to produce and the profit margin is much smaller. If anything, you are proving why the Switch SHOULD be 300$. Because even if it's 200$ to make(which I even have doubts about it being that low) it's profit margin would only be 100$ as opposed to a phone which offers more features, sure, but gets sold for ridiculously more new. So if anything, you're making Nintendo look fairer with this comparison.

Sorry, the switch does more than a smartphone?

Well, at least I see why the point makes no sense to you. 

I've said before, lets just leave it alone. I bow out of this discussion. However much any individual person thinks the switch is worth to them is all that matters at the end of the day.