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Forums - Sales Discussion - Global Hardware Sales 02 December 2017

nemo37 said:

I understand what the concept of a profit margin for a product is. However, are you seriously suggesting that Nintendo is taking a $50 system (or even say $100 system) and marking it up to $300 and then telling their investors that they are only making a very slim profit on each unit (not to mention their earnings reports do not in any way have profits that would match up with selling a high volume product at a $200-250 profit margin; even a $50 profit margin for Switch would have resulted in much bigger earnings than what they presented) ? Also, one thing that I do not understand, is that you are using a component breakdown analysis for the cost of production of the OnePlus 5T yet when Rol gave you a similar analysis for the cost of the Switch you refused to believe it.

Nowhere did I say that they are taking a $50 system and marking it up to be $300. I was just using that $50 example to make a point of how tablets (which for the most part is what the Switch is) aren't as expensive to make as people may lead some to believe.

I have no qualms with nintendo marking up stuff, its sold over 10M NS at that $299 price so obviously tehre are 10M people willing to spend that much for it. Good business. 

I however was just pointing out that nintendo (more than sony and MS) usually have higher profit margins on hardware. Like sony and MS wuld sell something to break even or even take a loss on the hardware but thats not something nintendo does. And this was all in answer to someone generally pointing out that a "fair" price point or even a price drop isn't something to ever expect from nintendo.

And what are you talking about with Rol giving me a similar cost breakdown.... hell I have not even given a cost breakdown... all I have done is just list components.

You guys are turning this into something that its not.

Believe it or not,  take it or leave it....... it does not cost as much to make hardware as the sticker price would have you believe. Especially when dealing with Nintendo... they actually have a history for ALWAYS selling hardware to make a decent profit.

I rest my case.



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NintendoPie said:
DonFerrari said:

A console selling better because it's better is one of the worst reasonings you ever saw?

The fundamentals of the reasoning are flawed. The Switch has had a better first year as a games console than multiple years of the XBO, and anyone with a sense of clarity can tell that, going forward, the Switch will continue to have better games output than the XBO. This has been basically proven and discussed multiple times, it shouldn't really be an odd thing to point out.

I saw your other post and I can only hope that you questioned my post purely because you thought it odd that people buy a worse console just on precedence, I forgive you for that assumption.

So it's sales of the hardware that determine it's output/library- but we only count games going forward, ignore Nintendos relationship with third parties and the XBO's overlap with the PS4 (the market leader)?

Sounds like cherrypicking to me. Let's use the Wii- better first year than the 360  (outside of a preference for first party games), the 360 undoubtedly has the better and deeper library. It also sold far, far more games than the Wii.

You can't ignore common sense and patterns within the industry, then claim another users reasoning is flawed when you're clearly not looking at the full picture.



 

RolStoppable said:
Intrinsic said:

No I do not doubt them...  I was just attempting to keep an open mind in this discussion. Look Rol... we both know how these go. Please lets just leave it alone.

Yes, I know. You claim untrue or wrong things, can't hold your ground in a discussion, play the victim card and want to be left alone. Have you ever been right in any of the discussions we have had?

Your track record isn't going to change when you make loaded claims like "Nintendo has a history for ALWAYS selling hardware to make a decent profit."

Isn't more likely that Nintendo will have profit on HW than Sony or MS?



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

RolStoppable said:
DonFerrari said:

Isn't more likely that Nintendo will have profit on HW than Sony or MS?

Sure, but the word 'always' is an absolute and when you emphasize it by writing it in capital letters, then you really, really mean it.

And the person would be wrong on at least 3DS which indeed sold for a loss at least on the first pricecut.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

RolStoppable said:
DonFerrari said:

And the person would be wrong on at least 3DS which indeed sold for a loss at least on the first pricecut.

Wii U was sold at a loss from the start.

That one I didn't remember. But yes, Nintendo have made loses on the HW in the past, I believe the agressive pricecuts of GC to compete against PS2 probably costed they some money on the HW.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

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PortisheadBiscuit said:
Something about Nintendo doing well always riles people up. Same happened during the Wii/DS era lol

That's group think, and an 'us vs them' mentality.

Take Nintendo out of the equation and try to consider for a little bit why you think that might be the case.



 

RolStoppable said:
Intrinsic said:

No I do not doubt them...  I was just attempting to keep an open mind in this discussion. Look Rol... we both know how these go. Please lets just leave it alone.

Yes, I know. You claim untrue or wrong things, can't hold your ground in a discussion, play the victim card and want to be left alone. Have you ever been right in any of the discussions we have had?

Your track record isn't going to change when you make loaded claims like "Nintendo has a history for ALWAYS selling hardware to make a decent profit."

I can hold my ground just fine... and I have no qualms admitting when I am wrong. Eg.. saying always was an exageration. Doesn't change the fact that nintendo is more likely to sell for a profit then sony or ms when it comes to console hardware.

And because I back out of our discussions it  doesn't mean I am wrong and you are right.... it just means I don't see the worth in continuing a discussion if I feel all that needs to be sid has been said.

You or I can say what we need to say all day long, weather you or I chooses to listen to the other person is a totally different matter.

And telling you we should let it go isn't playing the victim.... and you have this habit of personalizing everything. Which is exactly why I try and avoid these "discussions" with you.

Tell you what, how about you just ignore anything I say and I will try and do the same for you. Or if you can't ignore what I say, I will see to it that I ignore any response you make to anything I say going forward?

Deal?



Pretty good sales all around, European sales for the Switch could be better though.



                
       ---Member of the official Squeezol Fanclub---

Roberto63 said:

Why are you people so obsessed with how many units have been sold? You can just sense them salivating and getting so excited  when the PS4 or switch numbers come through. Why? What does it matter to you?? 

At first it could appear that we dont get any prize for our console being in top. But, if we have the winning horse, that means more exclusives, and more developers making more games for the console we have... So yeah, it makes me happy when PS4 (and Xbone a little bit since I have one) gets more good numbers... 



                          

"We all make choices, but in the end, our choices make us" - Andrew Ryan, Bioshock.

RolStoppable said:
Intrinsic said:

I can hold my ground just fine... and I have no qualms admitting when I am wrong. Eg.. saying always was an exageration. Doesn't change the fact that nintendo is more likely to sell for a profit then sony or ms when it comes to console hardware.

And because I back out of our discussions it  doesn't mean I am wrong and you are right.... it just means I don't see the worth in continuing a discussion if I feel all that needs to be sid has been said.

You or I can say what we need to say all day long, weather you or I chooses to listen to the other person is a totally different matter.

And telling you we should let it go isn't playing the victim.... and you have this habit of personalizing everything. Which is exactly why I try and avoid these "discussions" with you.

Tell you what, how about you just ignore anything I say and I will try and do the same for you. Or if you can't ignore what I say, I will see to it that I ignore any response you make to anything I say going forward?

Deal?

No deal.

It seemed like he won't wait for your agreement to ignore you.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."