eva01beserk said:
Kai_Mao said:
With the hypothetical specs shown in the rumors and leaks, how much do you guys think this upcoming Switch Pro or successor should be while maintaining a decent profit margin at the start? Or do you think Nintendo will take this chance to take a temporary loss at launch for eventual profit later on? They made sure to not sell the Switch at a loss come launch as a reference point.
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Nintendo will never take a loss. They dint even take a loss with the wiiu while it was destroying Nintendo.
I don't doubt that if the cost to make is high Nintendo will just price it higher and always make a small profit. They probably won't make anything that will make then go higher than $300.
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This is a very common misconception of Nintendo, that they always sell their hardware at a profit. But Nintendo actually sold a few consoles at a loss. First, in terms of raw production price vs sales price (so, not including R&D expenses): Gamecube, 3DS, and Wii U were all sold for less than it cost to produce them.
https://www.bbc.com/news/technology-20095125.amp
https://www.engadget.com/2012-04-26-nintendo-confirms-that-its-selling-3ds-at-a-loss-expects-that.html
https://www.ign.com/articles/2004/01/15/gamecube-sales-update
And then, factoring operational expenses vs revenue, Gamecube and Wii U were either rarely or never profitable. Nintendo suffered quarterly losses during both Gamecube and Wii U generations, the only times Nintendo has done so since 1962. It is especially telling during the Gamecube generation, because Nintendo had a booming handheld business through the entire Gamecube generation, and a somewhat strong handheld business during the Wii U generation.
https://www.ign.com/articles/2003/11/14/nintendo-reports-loss?amp=1
https://www.theverge.com/2016/7/27/12294482/nintendo-earnings-q1-2016
Last edited by Jumpin - on 27 September 2022