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.