Nintendo's problem is every other console after N64 is a dud.
Nintendo Switch does not sell at a loss.Nintendo instead has to pay itself in order to subsidize the hardware they're selling at a loss. 30% is what all of the console makers charge. No free lunch.
Agreed, but that also reflects this industry broadly. Microsoft Xbox - loss, Xbox 360 - win, Xbox One - loss. Sony PlayStation - Win, PS2 - Win, PS3 - Loss, PS4 - Win.
PS3 was definitely a loss. It was not even close to being as profitable as the PS2 due to high R&D costs, high console price, and the unit still sold at a significant loss.You have a point, but the PS3 ended up catching the 360 in terms of sales so I'm not sure you can call it a loss. Definitely a slow start with that high price point though. Every PlayStation console is in the top 5 sales of all time.
Nintendo Switch does not sell at a loss.
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Nintendo won’t sell Switch at a loss; plans to ship 2 million units in March
Nintendo didn’t give any more details about how the Switch will work or what games will debut alongside it, but the publisher provided some goals for the system as part of its most recent quarterly financial report. Tatsumi Kimishima, Nintendo chief executive officer, says the company plans to...venturebeat.com
Nintendo's problem is every other console after N64 is a dud.
N64 - Win
Gamecube - Loss
Wii - Win
Wii U - Loss
Switch - Win
We'll see what happens next. Logic would indicate that you just beef up the Switch for next-gen, but Nintendo always seems to try something new and waste a generation when it flops.
PS3 was definitely a loss. It was not even close to being as profitable as the PS2 due to high R&D costs, high console price, and the unit still sold at a significant loss.
PS2 was supposed to give the PS3 a huge audience boost but it barely beat out the 360.
They are selling at a loss. At an estimated $257 in parts each at $300 MSRP, that leaves nothing for retailer markup, non-recurring software and hardware engineering, overhead and profit.
The CEO is probably twisting words by saying there's no cash loss for each unit, which is probably true, but the engineering costs in tech products are huge.
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Japanese site estimates Nintendo spends $257 to make one Switch
Those Joy-Con are surprisingly expensivewww.polygon.com
They are selling at a loss. At an estimated $257 in parts each at $300 MSRP, that leaves nothing for retailer markup, non-recurring software and hardware engineering, overhead and profit.
The CEO is probably twisting words by saying there's no cash loss for each unit, which is probably true, but the engineering costs in tech products are huge.
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Japanese site estimates Nintendo spends $257 to make one Switch
Those Joy-Con are surprisingly expensivewww.polygon.com
Sold at a profit. Straight from Nintendo's mouth.
They can't lie because they're a public company. They'd get sued by shareholders if they lied about it.
Nintendo's problem is every other console after N64 is a dud.
N64 - Win
Gamecube - Loss
Wii - Win
Wii U - Loss
Switch - Win
We'll see what happens next. Logic would indicate that you just beef up the Switch for next-gen, but Nintendo always seems to try something new and waste a generation when it flops.
So you choose to believe a speculative article over source from Nintendo?Scroll up. We went over this.
Nobody discloses the margins, or lack thereof, on hardware, though Nintendo says they are vastly different from software. This is a case of tricky accounting at work.
Also Nintendo is a Japanese company and Japanese public disclosure rules are different from American regulations. Japan does not have class-action lawsuits, like you are thinking, so you can't get sued by a bunch of shareholders.
So you choose to believe a speculative article over source from Nintendo?
And we know Nintendo never or almost never sells hardware at a loss?
Ok. Just keep trying to prove something that you're trying to convince yourself.
True, but part of the reason many of those PS consoles are in the top five sales of all time is because they were multimedia machines with a CD/DVD or Blu-ray drive. Many PS2 consoles were just given away with Sony TV's for this purpose, and many were also bought for these reasons. Nintendo's consoles have always focused on gaming, and so all their sales count for that.You have a point, but the PS3 ended up catching the 360 in terms of sales so I'm not sure you can call it a loss. Definitely a slow start with that high price point though. Every PlayStation console is in the top 5 sales of all time. The Wii is the only other.