Wii Pricing Announced


Dang, thought it'd be cheaper than that.
 
It's very cheap. There's no number smaller than less than anything. Until it comes out on the shelves, I'm not interested in what it might be.
 
Who cares a shite? It's interesting old news.
 
Not really. Everyone on earth knew this was going to be the price, and a statement made by Iwata a few weeks ago said that if you look at the other Nintendo system's prices, and to notice a pattern. So it will most likely launch at that price.
 
I'd bet your wrong. I'm going to take a stab that since Nintendo has been losing money as of late, according to the article, profits are down and 19% is a big number when you consider the amount of money they are dealing with, that they are going to launch the Wii at $199.99. So they lose maybe a little money on the system, but now people will be more inclined to buy a game or two with the console since it was expected to be $250, and thats where Nintendo will see the cash flow in.
 
davey g posted on May 26 2006 at 12:56 PM said:
Their profits have dropped by 19%. They aren't losing money.

Your kidding me right? If the profits drop, then they are losing money that used to be there. They may not be in the negatives but they are still losing money, any drop in earnings is a loss of money.

I'll give you an example for anybody that doesn't understand, i'll make it easy.

A company sells a candybar for $1.00, this candy bar cost .25cents to produce. The first year they sell 100 candy bars, so 100 x $1 = $100, subtract the cost of making it and net profit is $75. In year 2 they sell another 100 candy bars, so again, net profit is $75. In year 3 they only sell 50 Candy bars, so 50 x $1.00 = $50, subtract the cost of production and net profit is $25.

The company even at 50% profit loss still made money. but they did lose quite a bit of money. So yes, profit loss does = money loss, money they expected to be there but now isn't.
 
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There's a difference between losing money and gaining less money. Saying "Nintendo has been losing money as of late" doesn't suggest they are still making profits. Semantics can be important sometimes.

Also, I'm pretty sure everybody understands. It's pretty simple. But when you say things like "If the profits drop, then they are losing money that used to be there." it's hard for us to know that you understand.
 
Angel posted on May 26 2006 at 03:36 PM said:
sorry but at leats in my eyes, loss of profit = loss of monies is pretty much common sense. How could you lose profit without losing money?
I'm afraid you've got a pretty basic view on the world. A drop in profit can be caused by many things, and most of them are deliberate attempts by a company to increase overall wealth. In Nintendo's case I'd guess the profit drop is caused by an increase in R&D combined with a slow down in sales while people wait for the wii. Large companies don't care about profit/loss over small periods and just look at trends over several years. It's quite common for a company to announce a huge loss one year, then record profits the next. Nintendo could actually afford to run at a loss for a few years before making a profit again, but over a decade they would still show an increase in wealth.
 
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Angel posted on May 26 2006 at 07:36 AM said:
sorry but at leats in my eyes, loss of profit = loss of monies is pretty much common sense. How could you lose profit without losing money?

[Edit: wrong info ;) ]. Ninty is all about extremely efficient bussiness model; they've been number one efficient company in Japan for a long time.

BTW as a side subject, how would you explain current gas companies like Exxon making record revenues while oil price is sky high? If you're running a bakery, and if the cost of flour goes up, you can't have record revenue because of added cost, isn't it? Was Starbucks making record revenue when coffee bean price spiked up a few years ago? How about OJ companies during orange price jumps in the past year?
 
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itsme posted on May 26 2006 at 03:06 PM said:
Angel posted on May 26 2006 at 07:36 AM said:
sorry but at leats in my eyes, loss of profit = loss of monies is pretty much common sense. How could you lose profit without losing money?

[Edit: wrong info ;) ]. Ninty is all about extremely efficient bussiness model; they've been number one efficient company in Japan for a long time.

BTW as a side subject, how would you explain current gas companies like Exxon making record revenues while oil price is sky high? If you're running a bakery, and if the cost of flour goes up, you can't have record revenue because of added cost, isn't it? Was Starbucks making record revenue when coffee bean price spiked up a few years ago? How about OJ companies during orange price jumps in the past year?

Gas companies don't make that much off a gallon, at least here in the US because the damn goverment has so many fricking taxes on it, both federal and state. It was researched and i believe the profit to the oil company per gallon of gas is like 34 cents, when you factor purchase price, delivery and refining, and local governments rules and regulatrions, like emmisions, on something that is almost $3 a gallon here in the states. Wether Nintendo wants to raise or lower prices to reflect supply and demand is their business. Lowering prices always brings in more revenue because more people are going to buy the product.

With that being said, I wouldn't be suprised if the Wii debutes at $199.95 or within 6 months is dropped to $199.95.
 
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Angel posted on May 26 2006 at 12:52 PM said:
Wether Nintendo wants to raise or lower prices to reflect supply and demand is their business. Lowering prices always brings in more revenue because more people are going to buy the product.
You cant necessarilly say that, as you arent taking the break-even point into consideration. There has to be a sort of, well, market equilibrium if you will....you cant just make an analytical claim like that and assume that lower prices=better for nintendo. At a certain point, they WILL begin to lose money if they price it too low, no matter how many people buy.

In any event, I have to side with the majority of posters on this. "Losing money" would mean they aren't even making their initial investment back. Which I have no doubt in my mind that they will (or should i say they "wii" lol)
 
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Everybody knows the main source of money for gaming is the software, not hardware, If you price the hardware at or slightly lower than cost, then that allows people to spend more on the software. So if you have a system that is now being priced at $250. Get people to expect that, then shock everybody when it gets released for $199, they were expecting to pay $250, so they have $50 extra to buy a game or accessories.

I bet everybody on this board at one time or another has waited to buy something for a price drop for something brand new. Its the same concept, but if you price the product that cannot be passed up from the beginning, not only do you sell the product that people would've bought anyway regardless of price, but you also get the sales from the people that intended to wait. Thats why i feel the Wii will be $199 at launch.
 
Angel posted on May 26 2006 at 05:52 PM said:
itsme posted on May 26 2006 at 03:06 PM said:
Angel posted on May 26 2006 at 07:36 AM said:
sorry but at leats in my eyes, loss of profit = loss of monies is pretty much common sense. How could you lose profit without losing money?

[Edit: wrong info ;) ]. Ninty is all about extremely efficient bussiness model; they've been number one efficient company in Japan for a long time.

BTW as a side subject, how would you explain current gas companies like Exxon making record revenues while oil price is sky high? If you're running a bakery, and if the cost of flour goes up, you can't have record revenue because of added cost, isn't it? Was Starbucks making record revenue when coffee bean price spiked up a few years ago? How about OJ companies during orange price jumps in the past year?

Gas companies don't make that much off a gallon, at least here in the US because the damn goverment has so many fricking taxes on it, both federal and state. It was researched and i believe the profit to the oil company per gallon of gas is like 34 cents, when you factor purchase price, delivery and refining, and local governments rules and regulatrions, like emmisions, on something that is almost $3 a gallon here in the states. Wether Nintendo wants to raise or lower prices to reflect supply and demand is their business. Lowering prices always brings in more revenue because more people are going to buy the product.

With that being said, I wouldn't be suprised if the Wii debutes at $199.95 or within 6 months is dropped to $199.95.

simply LOL
Other than that, Nintendo have said forever that Wii was going to be less than $250
 
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