Need advice on Wii

[Troll King]

Nowhere did I say that the definition of the console was was making profit. The console war in itself is all about market share. But in the end it's all about profit. And to get the most profit, you will want the biggest market share. Nintendo just wants profit now, which means they have to make decisions on the console to make it cheaper yet profitable etc. Microsoft and Sony can afford to make losses to make profits in the long term.

All that I am saying is that in the end all company's want the same. Making the most profit possible which basicly means having the biggest market share. That doesn't mean that Nintendo doesn't want to be making profit from the beginning and will do whatever they can to get the biggest market share. But it is ideally what they are after.

And I am saying that having the larger market share is not the only way to have more profit. By 2008, when Microsoft finally turns a profit with their gaming division, they'll still be far behind the total profit that Nintendo has generated over the same period of time since the XBox came out. And that will happen even if Microsoft beats Sony for number one in market share by that time.

The other side of the matter is that Nintendo is staying out of the OTHER war, and arguably the one Microsoft and Sony are more interested in, and that's the HD DVD vs Blu-Ray war. That battle is going to have a much bigger effect on the future than the gaming side. For example, analysts say that the PS3 is designed to last longer than most consoles do. Most have a 4-5 year span before they are replaced by a higher quality product. When Microsoft makes its next Xbox console, the PS3 might still be powerful enough that Sony won't need to make a tremendous upgrade. But what happens if HD DVD beats out Blu-ray? The XBox is in a better position if Blu-Ray comes out on top, because the HD DVD part is an add-on, giving them more flexibility. Sony took a bigger risk by having a Blu-Ray drive come standard with the system.

[Zerzera]

Where does profit go when it's generated?? :huh: :unsure:

[Spider]

I agree with both TK and Galleleo. Nintendo has just been hanging on for dear life lately. If their sales continued to decline like they have been that company would have been in trouble. Market share isn't anything but you can get to a point where you're just irrelevant. Studios would probably quit making games for Nintendo products, they'd lose creditability, profitability would eventually be nothing more than a fond memory as well.

At the same time, obviously, Nintendo can't afford to lose $100 per unit, and have a development cost that was as high as Sony or Microsoft. They'd be sunk. I think Nintendo did all it could, try one more time to revolutionize and get some attention, make a nice entertaining and stable system with the resources they have and hope it sells. So far, it looks like they might have succeeded in a big way. I wouldn't be surprised if they don't just manage to continue to hang on but actually come out on top.

Here is something else to consider. Sony managed to get around 16 systems I think I heard to the Future Shop in Saskatoon. Nintendo got 70 or so system for their launch day two days later. What does that tell you? If Nintendo wanted to they could have beaten Sony's launch date if they shipped 30 units to a store instead of 70. They knew Sony would stumble over the finish line, falling embarrssingly short of demand. So they release a few days later, and move 10 times more units. Market share right now? Probably 70% Nintendo. It will take Sony until well after Christmas to catch up simply due to the fact that they have nothing to sell. Nintendo, mean while, word is that they will have a steady steam of systems to retailers throughout the season. Expect the sales gap to widen over the months.

Well played Nintendo. They're the guys to beat for the first time since the SNES.

[Sleuth]

My friends wouldnt kick my ass, but come on, who waits in line for more then like 6 hours for a fucking video game

[Zerzera]

I wonder if Nintendo is even in the same market segment with this price difference. I think parents and grandparents will go for the Nintendo as Christmas presents unless children explicitly ask for the other.
The PS3 is more for the adult no-lifers that think they are still kids.

[DoTheFandango]

I know alot of people that are genuinely surprised with how awesome the Wii is, and say COD3 and Red Steel are something everyone should play.

GAH ALL I HAVE IS MY XBOX AND MY MADDEN 07 :'(

[Galleleo]

Where does profit go when it's generated?? :huh: :unsure:

It depends, back into the company for development, as payment to stakeholders. Stocked as reserves. It can go a lot of ways.

Here is something else to consider. Sony managed to get around 16 systems I think I heard to the Future Shop in Saskatoon. Nintendo got 70 or so system for their launch day two days later. What does that tell you? If Nintendo wanted to they could have beaten Sony's launch date if they shipped 30 units to a store instead of 70. They knew Sony would stumble over the finish line, falling embarrssingly short of demand. So they release a few days later, and move 10 times more units. Market share right now? Probably 70% Nintendo. It will take Sony until well after Christmas to catch up simply due to the fact that they have nothing to sell. Nintendo, mean while, word is that they will have a steady steam of systems to retailers throughout the season. Expect the sales gap to widen over the months.

this COULD also be a marketing technique from Sony. (I say could because I don't know how sony layed out their business plan for the ps3 and it's release and whatnot). For instance, when Volvo launches a new car, they usually deliberately deliver not enough cars. That way you create a luxury product which people want to have. So when your second wave comes out, you can still charge the premium price because the product is still scarce.

REMINDER: That was more a general post then that I meant to say that Sony did indeed do it on purpose, because like I said, I don't know what sony's business plan is on this and stuff.

[ConcreteSchlyrd]

this COULD also be a marketing technique from Sony.

It's called "shoddy electronics."

[genocidal]

There is no way that missing the holiday season's rush for electronics is a marketing strategy. It's a fuckup.

[Zerzera]

Yeah, I don't see a bunch of 70 year olds waiting 10 hours in line for a +500 dollar present for their grandchildren.