Slownenberg said:
As expeced, S2 sales back to around 30k the week after Splatoon, and next week likely back to baseline ~25k.
Nintendo's gotta be thinking to themselves was a $50 (or well I guess in Japan it was ~$63) price increase worth losing 25k/weekly sales in Japan alone...and of course the global impact will be much greater starting next month. That is sooo much lost hardware revenue and future software revenue just to not be selling the systems at a loss due to RAM chips.
Really feels like all three companies are playing a game of terrible business practices and forgetting that userbase and software sales are how you make money and not hardware profits. Just selling one or two first party games to every additional buyer willing to buy at the cheaper price means they've made up the revenue they would lose by not raising the price. |
you are forgetting how much they are subsidizing the switch 2 in japan even WITHOUT the chipflation... the switch 2 going 500 globally soon shows that they are probably losing out on every unit sold even at 450 at this point (even if a small amount) after everything is accounted for ... meaning that 50$ difference is a 50$ difference in deficit.
or let me put it this way: lets assume the switch 2 costs 450 to make and get to the end user, all factors accounted for. The previous price is 50k yen, 316$. the current price is 60k yen, or 380$.
450-316=134$ loss per unit at old price. 450-380=70$ loss per unit at new price.
at 50k sales at the old price they were losing 6.7 million per week on hardware sales.
at 25k sales at the new price they are lising 1.8 million per week on hardware sales.
so basically they are plugging 5 million in losses RN with the new price.
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