The Vita is the reason why Nintendo is losing money on every 3DS sold, and the push that caused the price drop so soon after launch. How many other successful consoles have ever had a price drop of the size we've seen so soon after launch?
3DS sets all-time sales record in Japan
- Thread starter heartgold
- Start date
- Views 8,942
- Replies 110
- Likes 1
The Vita could not directly be blamed. Nintendo was also at fault for launching the console at a somehow atrocious $250.
Personally, if the 3DS was fully packed at launch with Swapnote, demos, videos, internet shop etc. (no NOT the second stick), I wouldn't care less about shelling out $250. They didn't, and I'm very disappointed with this action,
Off topic: The Vita actually costs more than 250 if you add in the largely compulsory memory storage.
Nintendo would be under far less pressure on the pricing of the 3DS but for the Vita. The smartphone market is still not recognised as a dedicated gaming platform so without the Vita Nintendo could just sit back and leave the price as it was whilst waiting for the Triple A titles....they had to amend the pricing to ensure market penetration before the competition launched, despite the relative lack of games. As long as many many people have a console, software sales should eventually follow.
It's all speculation, the source was from bloomberg, no official word has ever been mentioned from Nintendo.
They could be taking a loss, but we have no hard evidence that they are.
Is Bloomberg not a reliable source?
Even then, why is it so bad if they're taking a loss on the 3DS? The strategy worked for the PS3. Sure, it takes time to finally start turning a profit, but it's better than just simply getting poor profits. It helps get a larger base so you can sell more games.
This is the source article -
http://www.bloomberg.co.jp/news/123-LP17UQ6K50XS01.html
The issue is that the price cut was forced so soon after launch, before an established software library could be put in place (a price drop of a new console that quick is almost unheard of...). Sure more people will be buying 3DS games but not in the quantities they'd ideally want. In this case it'll take them that much longer to recoup the losses they incur from selling the 3DS at this price, and it may lead to financial difficulties if they require quick cash (although with Nintendo that's doubtful). Having a firm financial base is important for large scale corporations as it proves their solvency.
It's almost unheard of for Nintendo to make a loss on it's hardware....
- Joined
- Feb 10, 2009
- Messages
- 5,484
- Trophies
- 2
- Location
- Sacramento, California
- Website
- lazerlight.x10.mx
- XP
- 5,511
- Country
Didn't it start with the Wii that Nintendo was making profit from their hardware upon release? Software is where the actual profit comes from anyways, and that's been the philosophy for quite some time before the Wii.
Similar threads
-
- Portal
-
- Portal
-
@
Sicklyboy:
College costs, college loans, book prices, the entire thing is predatory, oft touted as essential to a successful life for my generation and the ones since, and completely unaffordable without putting you through an insane financial hardship for literal decades in many situations.+1 -
@
Sicklyboy:
Many of the same issues can be seen for the insanely predatory healthcare and health insurance system in the US+1
-
-
@
Sicklyboy:
It's important for society to be healthy and educated. If those things can't happen because all of the institutions that prop up those industries make it unattainable for all but a small portion of society, then your society is largely going to be disease ridden, dying, and uneducated in very short order.
-
@
K3Nv2:
Issue is it's too rich of a coperation already with bad sugar diets causing diabetes and killing teeth a new set of teeth around 90k -
@
cearp:
I agree it's not easy for the average American, let alone the ones below that average. Free / cheaper healthcare is much more important I think than free university education.+1
Of course like @mthrnite said, why not both. But I doubt both will get solved at once, and surely healthcare is top priority. -
-
-
@
Sicklyboy:
If it's needed to keep you healthy it shouldn't cost you $90k. The fact that it does is an enormous problem
-
-
-
-
@
Sicklyboy:
And if the concern is that "well we can't trust the government to intervene for this because the government can't do anything right and wastes tons of money" then holy shit push for a better government. I'm certainly trying to. Don't throw your hands up and go "we've tried nothing and we're all out of ideas"
-
-
@
cearp:
@K3Nv2 that's crazily expensive. how long will that take to pay off?
Although diet is largely education, people don't need to go to university to learn what's healthy and what's not,
it's the whole country, big corporations and advertising that is to blame for leading most of the population to believe that poptarts and froot loops are healthy to feed a child -
@
mthrnite:
i would think the population knows better but with food deserts and abject poverty, sometimes a poptart gonna have to do. -
-
@
Sicklyboy:
As someone who went through the grade school system in the US some time within the past 30 or so years, not nearly enough is done to promote and educate on how to eat healthy in a way that is feasible to do on a regular basis and also affordable. Eating healthy is, comparatively, fucking expensive. So is eating unhealthy, but in many cases eating unhealthy is more affordable than eating healthy+1
-
-
-
-
-
-
-