quote:
Sean impressed everyone with:
Do we know for a fact Nintendo's not operating at a loss for the console itself? The other two obviously are, but I'm not sure on the Wii.On one hand, cheap hardware. On the other.. $250 wtf.
It's very unlikely that Nintendo will make a profit per system alone. However, that being said? It's also unlikely that Nintendo will take a 500 dollar loss on each system that they sell, while still alienating portions of the market with a 600 dollar price tag.
For the math above, try it this way.
First, the money earned per system sale.
Wii - 49*250 = 12,250
PS3 - 22*600 = 13,200
Next, measure the assumed loss for each company. Rough estimates put the PS3 at a 500 dollar loss per system. To be fair, let's say that nintendo loses 100 dollars per system, I don't think that that's unfair.
Wii - 49*100 = 4,900
PS3 - 22*500 = 11,000
Now, Wii. 12,250 earned, 4,900 loss = 7,350 overall gain.
PS3 - 13,200 earned, 11,000 loss = 2,200 overall gain.
Who's the winner again?
that's not how that works.
If Sony is projecting a $500 loss per every PS3, that means it costs them $1,100 to produce sell and they earn $600 for it, so they have a $500 net loss per every sale.
Wii's probably 100 - 150 a pop. X-Boxen who knows, I don't even care enough about that console to track its failures.
It's not something people hear about.
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Blindy. had this to say about the Spice Girls:
uhm...that's not how that works.
If Sony is projecting a $500 loss per every PS3, that means it costs them $1,100 to produce sell and they earn $600 for it, so they have a $500 net loss per every sale.
Now why the hell did I do it my way? I swear to god, this is why I shouldn't post when I've just woken up... Blindy is absolutely right, my figures are completely batshit and incorrect.
I know what I was trying to point out, but somehow I posted what I did instead. 
It made sense in my head, I swear...
Regarding the production costs of the system, however, I will at least back up my figures with a link. I don't know where I got my 1,100 dollar production cost from, I could have sworn I saw that reported somewhere, but it looks like I was mistaken.
Anyway, here's a link for you. I'm looking for more, but this is the best piece of news I could find. PS3 Production Cost to be roughly $900. Mooj fucked around with this message on 05-23-2006 at 04:44 PM.
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Error had this to say about Captain Planet:
Is the official pricing for the Wii $250?
There's been no official announcement on the Wii's price. $250 is a commonly accepted estimate based on some vague comments Nintendo officers have made, such as, "It will be in line with the prices of our earlier systems," and, "It won't cost much more [than previous systems]."
Or something like that.
However, I'm betting it will still be the cheapest of the 3 systems since Nintendo will make crazy-ass money from the popular franchises which are developed in-house. Even selling the the system at a significant cost, Nintendo would saturate the market with the Wii, further improving the sale of big ticket games such as Zelda. In the short run, they'll lose a lot of money, but in the long run, every Nintendo employee's Christmas bonus will be a large sack of money with a stripper inside.
