When the 3DS launches this Sunday, March 27, it will carry with it a $249 price tag. However, as we all know, these devices never cost as much to make as they do to buy. The retail price takes into account marketing, manufacturing costs, and plain profit.
too expensive? Are you a frickin janitor or what?? even of it cost 100 to make, the advertising, R&D, marketing, labor, tax, and wholesale price would probably cost them an extra 100 which will leave them with onlly 50$ profit which is only 25% which is very low compared to other products. So shut up all of you cheap bastard who thinks that the company should sell them for no profit.
Companies often take a loss on their gaming consoles; their hope is increased revenue from game sales (a result of an increase in console sales) will make up for the loss. I'm not sure how different the portable market is in this regard, but it does surprise me that Nintendo is taking in $150 to try and cover the cost for R&D, marketing, and shipping.
I wonder if they're afraid the system won't be a huge hit and want to bring in more money per console sale in an effort to hedge their bet on the system. Or, perhaps (a more optimistic take) they believe the system is so unique that people will pay the higher price?
I'm guessing when Sony comes out with the PSP2, Nintendo will drop the price. That would be a good way to now to pay off expenses now (by milking early adopters) so they can cut costs down the road.
If this estimate is correct, Nintendo is still making a profit compared to the PS3 at launch. As for you beamthegreat1, not everyone is as well off as you. Griffed88 is only wise to judge if its well worth spend his hard earn money, and in my opinion 3DS is currently not well worth spend especially its just a hand held.
At this point it's too expensive to me for what it does, though I'm sure Nintendo did their analyses and figured out what price would make the most profit, just like every company does.
I will say this, if they're actually making money on their hardware, instead of breaking even/taking a loss, it kind of makes their whole thing about remotely bricking hardware stink even worse than it does. Which reminds me, that's the other reason I won't buy one. I'm really getting sick of this "you paid money for it but you don't own it" mentality that more and more companies seem to be trying to get away with.
I don't see myself pirating games, but I could see myself trying my hand at writing one of my own. Better hope Nintendo doesn't notice!
Economics aren't based off manufacturing costs, they're based off the market worth. If people are willing to buy it at that price, and they are, then they will be sold for that price. Just because Sony sold the ps3 at a loss does NOT mean every other console has to do so.
Sony has a lot of interests other than the gaming industry, so they have a lot more to gain from underpricing a console that could push their other technologies. Sony wanted Blu Ray to win the format war, ps3 helped them do that. It also encourages purchasing Sony 1080p 3d TVs and content from Sony's movie/music divisions. Nintendo doesn't care about selling you a TV or buying the latest media, they just want you gaming.
It's a bit pricey for kids, sure, but considering how many people are carrying around 600 dollar smartphones, it's actually quite affordable in comparison.
BTW the whole "Nintendo will brick your system" business is from a retailer, not from Nintendo's official policy, so get over it already. Nintendo warns that if you mod your system, it could be bricked. The same is true for any console, messing with it could lead to bricking, and no retailer is going to take it back. The same is true for jailbreaking your phones as well, read the disclaimer, your warranty is void afterwards. When Nintendo actually bricks something with a firmware update, then you can judge them for it. Until then, they haven't said anything. And don't bother whining if they only target piracy specific mods, if you lose your 300 dollar console because you ripped off 500 dollars worth of games, I don't feel bad for you in the slightest. That's the risk you take.
I have watched many, many of these articles where something is broken down, and a price is somehow extracted based on the sum of the parts needed to build it. These types are articles are pure speculation by persons who know very little about manufacturing or the costs associated.
The value of a particular item has nothing to do with the sum of the cost of the parts you need to build it. If you started a business based on the theory of these articles, you would be bankrupt before your product ever made to the stores. That is a fact, not speculation.