How much does it cost to buy a brand new Galaxy S7 or iPhone 7 again?

Sheeesh, are so many of you really this clueless?

You guys really don't get why smartphones are usually sold at over an 80% markup ompared to their original cost of manufacturing and why consoles aren't sold that way?

Whats sad is that you and a few others that has done what yu are doing here and probably thinking you are being smart is really only showing how ignorant in this particular area you are.

There is a reason why game consoles are pretty much the ONLY electronic devices that can be sold with no profit or even taking a loss and still go on to be successful. Please, i have already explained this more than once in this very thread. This is becoming ridiculous.

Warned ~ CGI

Thanks for this post. And all that is even assuming that at $250, they are even taking a loss..........

This loss leader concept that has been prevailant in consoles for God knows how long  has suddenly become gibberrish to a lt of posters in this thread. They simply refuse to understand why or how all consoles can get away with selling atcertain prices and how there are so many ways they can make that money back.

I have spent 3 pages in this thread trying to explain this very concept to them, trying to tell them why every other electronic device (albeit I used smartphones because they have  a very similar design make up to the NS) have to mark up their prices from what it cost them to actually manufacture their hardware becaus those companies don't hvae games or accessories or subscription services to sell you. Their business with the consumer ends the second that consumer pays for the hardware. But game consoles don't work that way..... yet that concept seems tooo complicated to understand all of a sudden.

First: On behalf of everyone you're insulting with this comment of yours, I will invite you to tone down the flaming. 

Secondly: You hallucinate quite a lot there because I didn't say or implied any of what you mentioned.

Which brings me to your actual response: Do you know the markup % for the Switch? It's quite far from the 80% you mentioned for phones. That much we'll agree on, right? Now, how little must that markup % be to be deemed proper by you? Must it necessarily be lower than 0%? What's the acceptable range according to a sales expert such as you?

many developers are actually surprised that they were able to cram so much tech into it and keep the cost as low as it is.

I get your point. And I think that Nintendo knows about it, but they want to play safe at the beginning. If the thing sells like hotecakes, they don't really have a necessity to cut Switch's price. If sales get stale, they still have room for a price cut. And Switch era will still be profitable. But I don't think there's a need of rushing it.

Value is nebulous and established by the market. $300 make sense to me given Nintendo will sell every last unit for first few months. Once sales decline I expect a holiday bundle and a 2018 price drop to $200-250 range.

The loss leader strategy is something that has primarily been utilized by Sony/Microsoft and historically they have been far less profitable than Nintendo in the gaming business.

Also, this is the first generation of Nintendo having annual losses and just so happens to be the generation that Nintendo decided to utilize a loss leader strategy.

Having Zelda, Mario Kart, ARMS & Splatoon releasing in close proximity to one another should help keep momentum going in the first 6 months then a price cut to $250 in time for the holidays & Super Mario should give it a pretty decent first year.

Every console sells at a loss initially because of the huge R&D costs and up front costs like setting up the production line. I'd be very surprised if it was even possible to be profitable within the first year but if it was it would be late in the first year. It's more about how you decide to claw back the R&D costs and of course the actual cost of manufacturing the console itself. If its something incredibly low performance like the wii u which is cheap to make using low cost parts then it could be sooner rather than later but if you providing decent technology like Sony and Microsoft you likely play the long game over a few years. However that said you may not even care about recouping those costs if your online charges, software royalties and accessories are bringing in a huge amount of money.