Now everyone knows that the huge topic in System Wars is sales of a system. But let's see....we can agree on something here......that when you wanna buy a videogame system for example....you can buy a PS3 or a Wii or a 360.....essentially, you can "substitute" a Wii for a PS3 or 360 or whatever. So we can say all three of these are substitutes for each other. Let's isolate the PS3 and Wii for a second since they just launched. Now in the world of simple economics..... we have Good A (Wii) and we have Good B (PS3). Now we have already agree that the two are substitutes of each other and when a cheaper priced Substitute Good is available people are going to purchase it than the other Good. It's simply a simple economic statement. I mean Let's see...
Wii - 436,000 units (x$250 per unit) = $109,000,000 sales PS3 - 244,000 units (x$600 per unit) = $146,000,000 sales 360 - 294,000 units (x$400 per unit) = $117,600,000 sales
So in actual sales dollars the PS3 AND 360 both beat out the Wii for January.....I mean families are buying Wii's not because they're revolutionary, but simply because they'recheaper. And in fact the amount of Wii units they are buying is not so much more than of the PS3s or 360s units that it would make the total sales dollars of Wii's greater than those sales dollars of the PS3 or 360
Your point being? Nintendo is the ONLY one that made a profit on system sales alone in that period. And it doesn't take an Economics major to tell you why that matters.
The thing is, Nintendo is actually making a profit. The Wii cost less to produce then it's selling price (And they call Sony fans cows, heh). While the 360 and PS3 still cost more to produce then the selling price.
You are forgetting the fact that Microsoft is barely making a 50 dollar profit for every Xbox360 sold, and Sony is losing around 250 dollars per PS3 sold as of now...
While the Wii is making over 180+ on every Wii sold.
That is why Nintendo made it cheap, because it is cheap and has inferior hardware. But you can always argue that Gameplay > Hardware but without good hardware, you can't have the necessities for good gameplay such as physics, draw distance etc..
Video Game Consoles are not true substutes... as In they don't sub 100% for each other, due to Exclusive games, special features, and various other basic limitations.
If consoles were perfectly substutable then the PS2 should never have won last gen, and the Xbox 360 shouldn't have sold at all, (Just buy a PS2).
that still means more wii's are in homes than the ps3 meaning more software and aseeroies will be brought compared to the ps3. The amount of revenue generated from console sales is just one aspect your not really looking at the full picture, aslo here's some simple econmic's for ya profit = revenue - cost although sony might be generating more revnue there cost are higher and as a result they are making less profit then nintendo so no matter how you try and spin it sony is still losing.
Now everyone knows that the huge topic in System Wars is sales of a system. But let's see....we can agree on something here......that when you wanna buy a videogame system for example....you can buy a PS3 or a Wii or a 360.....essentially, you can "substitute" a Wii for a PS3 or 360 or whatever. So we can say all three of these are substitutes for each other. Let's isolate the PS3 and Wii for a second since they just launched. Now in the world of simple economics..... we have Good A (Wii) and we have Good B (PS3). Now we have already agree that the two are substitutes of each other and when a cheaper priced Substitute Good is available people are going to purchase it than the other Good. It's simply a simple economic statement. I mean Let's see...
Wii - 436,000 units (x$250 per unit) = $109,000,000 sales PS3 - 244,000 units (x$600 per unit) = $146,000,000 sales 360 - 294,000 units (x$400 per unit) = $117,600,000 sales
So in actual sales dollars the PS3 AND 360 both beat out the Wii for January.....I mean families are buying Wii's not because they're revolutionary, but simply because they'recheaper. And in fact the amount of Wii units they are buying is not so much more than of the PS3s or 360s units that it would make the total sales dollars of Wii's greater than those sales dollars of the PS3 or 360 MikeE21286
Nintendo easily makes alot of profit from these sales unlinke microsoft and $ony.
The post is not on the profits as some have suggested or to try and add and multilpy numbers together. It's about an explanation for the reason for why Wii's are selling at a much higher rate than PS3's or 360s . I am not trying to argue that either of them are making more profit than each other and in hindsight I probably should not have even posted numbers.
[QUOTE="taco1881"]I guess someone learned about revenue in grade school today. Tomorrow you'll realize how dumb this post was when you learn what profit is. HeedleGlavin
[QUOTE="UssjTrunks"]Nice try but denial won't get you anywhere.HeedleGlavin
It has nothign to do with denial it is just the way it is. I posted what I posted to show that simple fact.
Again, please educate yourself. Revenue doesn't equal profit. Please, for your own sake, stop while you're already behind.
I AM NOT ARGUING ABOUT PROFIT FOR THE LAST TIME. This in regards to S A L E S. If you people are saying that the price of LOW price of the Wii has nothing to do with it's success than that is ridiculous.
[QUOTE="UssjTrunks"]Nice try but denial won't get you anywhere.MikeE21286
It has nothign to do with denial it is just the way it is. I posted what I posted to show that simple fact.
Again, please educate yourself. Revenue doesn't equal profit. Please, for your own sake, stop while you're already behind.
I AM NOT ARGUING ABOUT PROFIT FOR THE LAST TIME. This in regards to S A L E S. If you people are saying that the price of LOW price of the Wii has nothing to do with it's success than that is ridiculous.
Unfortunately, for you, profit is what matters to hardware manufacturers. Your argument is the epitome of desperation. So, now the discussion is about the pricetags' effects on the console war? I thought we were busy listening to you say that the company pulling in the most revenue was "teh winner".... :|
sony loses $240 with each console sold(240 at launch anyway. we dunno if they got a litle cheaper to make since then). so for sony it more like:
244,000x(-240)=-58,560,000
however, sony makes it back(hopes to anyway) with the sales it creates from games, blu-ray movies, and hdtv's. i really give it up to sony for taking one in the balls for consumers.
[QUOTE="UssjTrunks"]Nice try but denial won't get you anywhere.HeedleGlavin
It has nothign to do with denial it is just the way it is. I posted what I posted to show that simple fact.
Again, please educate yourself. Revenue doesn't equal profit. Please, for your own sake, stop while you're already behind.
I AM NOT ARGUING ABOUT PROFIT FOR THE LAST TIME. This in regards to S A L E S. If you people are saying that the price of LOW price of the Wii has nothing to do with it's success than that is ridiculous.
Unfortunately, for you, profit is what matters to hardware manufacturers. Your argument is the epitome of desperation. So, now the discussion is about the pricetags' effects on the console war? I thought we were busy listening to you say that the company pulling in the most revenue was "teh winner".... :|
I'm not even trying to claim a winner at all. An explanation for higher sales figures is all. Look at it from the perspective of someone buying........$250 vs. $600
You are forgetting the fact that Microsoft is barely making a 50 dollar profit for every Xbox360 sold, and Sony is losing around 250 dollars per PS3 sold as of now...
While the Wii is making over 180+ on every Wii sold.
That is why Nintendo made it cheap, because it is cheap and has inferior hardware. But you can always argue that Gameplay > Hardware but without good hardware, you can't have the necessities for good gameplay such as physics, draw distance etc..
The_Nemacyst
180? Where'd you learn math, in english class? $250 - 208 = 108. Of course!
[QUOTE="UssjTrunks"]Nice try but denial won't get you anywhere.MikeE21286
It has nothign to do with denial it is just the way it is. I posted what I posted to show that simple fact.
Again, please educate yourself. Revenue doesn't equal profit. Please, for your own sake, stop while you're already behind.
I AM NOT ARGUING ABOUT PROFIT FOR THE LAST TIME. This in regards to S A L E S. If you people are saying that the price of LOW price of the Wii has nothing to do with it's success than that is ridiculous.
So all you're trying to prove that the low price of the Wii factors into the success it's having? Isn't that completely obvious? :?
If I make $50 at the operating cost of $20 I profit $30. If I make $100 at the operating cost of $90 I profit $10.
Although the $100 makes more revenue the $50 one makes more profit. Your post fails. Especially when it says think logically... Jandurin
Where's the logic? He forgot to add the ps2. I hate it when people say sony is losing money. There still making money off of the ps2 and developers are still making game for it. Think of the revenue sony and developers making when franchises like madden come out. You know madden is going to outsell the wii, 360, and ps3 combined just on the ps2.
ok all u idiots shut up. he isnt talking about what system is making more money. hes trying to justify the stronger wii sales compared to PS3. he is sayin since its cheaper it will sell more. partly tru. but alot of people also bought the thing cause of the buzz behind play games with a motion sensor control. i know cause when i camped out wit my buddies infront of target that was one of the big things behind y people wanted to buy it. so its definantly somethinge new, fresh, innovative, and revolutionary. oh and the ps3 still has no great games for it. the wii has AAA titles like Zelda. on this site itswarioware, but i say warioware is really a AA and zelda is AAA so i switched the 2 but whatever. and has a couple of good AA games. PS3 has one legit exclusive AA resistance, but there are alot better answers for a FPS game. so yeah the ps3 lineup is also pretty much trash. cause all there other good games are allready on 360, which is a cheaper system. i mean thats just plain logic. what idiot pays 600 dollars for a system that plays games he or she can play on a 300-400 dollar system.
The thing is, Nintendo is actually making a profit. The Wii cost less to produce then it's selling price (And they call Sony fans cows, heh). While the 360 and PS3 still cost more to produce then the selling price.Ibacai
Actually that is not true. Nintendo is losing a marginally small profit on the Wii because of the controller bundled with it cost them a boat load to design and produce. I would think by the time they reach 1 million units they will have broke even on the Wii controller development cost and will be making more profit.
ok all u idiots shut up. he isnt talking about what system is making more money. hes trying to justify the stronger wii sales compared to PS3. he is sayin since its cheaper it will sell more. partly tru. but alot of people also bought the thing cause of the buzz behind play games with a motion sensor control. i know cause when i camped out wit my buddies infront of target that was one of the big things behind y people wanted to buy it. so its definantly somethinge new, fresh, innovative, and revolutionary. oh and the ps3 still has no great games for it. the wii has AAA titles like Zelda. on this site itswarioware, but i say warioware is really a AA and zelda is AAA so i switched the 2 but whatever. and has a couple of good AA games. PS3 has one legit exclusive AA resistance, but there are alot better answers for a FPS game. so yeah the ps3 lineup is also pretty much trash. cause all there other good games are allready on 360, which is a cheaper system. i mean thats just plain logic. what idiot pays 600 dollars for a system that plays games he or she can play on a 300-400 dollar system. jg4xchamp
You have no right to call anybone idiot nor the right to tell anyone to shut up. Maybe when you realize that the first word in a sentence starts with a capital letter then maybe you can. The Wall of Text doesn't help either. Other wise fine you made a valid point.
So, if made ONE console, that costs me 2 billion to make, and sold it, just this one unit, to some crazy guy, for one billion dollars, i'd be winning system wars?
At the end of the day im sure SONY would rathe rof had PS3 $100 cheaper and made less revenue provivded they took a lower los and slightly higher sales ...
[QUOTE="jg4xchamp"]ok all u idiots shut up. he isnt talking about what system is making more money. hes trying to justify the stronger wii sales compared to PS3. he is sayin since its cheaper it will sell more. partly tru. but alot of people also bought the thing cause of the buzz behind play games with a motion sensor control. i know cause when i camped out wit my buddies infront of target that was one of the big things behind y people wanted to buy it. so its definantly somethinge new, fresh, innovative, and revolutionary. oh and the ps3 still has no great games for it. the wii has AAA titles like Zelda. on this site itswarioware, but i say warioware is really a AA and zelda is AAA so i switched the 2 but whatever. and has a couple of good AA games. PS3 has one legit exclusive AA resistance, but there are alot better answers for a FPS game. so yeah the ps3 lineup is also pretty much trash. cause all there other good games are allready on 360, which is a cheaper system. i mean thats just plain logic. what idiot pays 600 dollars for a system that plays games he or she can play on a 300-400 dollar system. Blackbond
You have no right to call anybone idiot nor the right to tell anyone to shut up. Maybe when you realize that the first word in a sentence starts with a capital letter then maybe you can. The Wall of Text doesn't help either. Other wise fine you made a valid point. first thanks for agreeing with the points. but this is a reply in a forum, why do u all care for grammer and all this other crap. its a videogame forum not an english paper. i know how to write well thought out sentences and paragraphs for college and such. i just feel more at home typing like im typing a text message or an IM god i swear. anyway i called people idiots cause all they saw was hey let me bash this guy for not mentioning profits. then everybody jumps on that same bandwagon and misses his point. that all. i mean thats all i was trying to clear up the point of his actual thread. did i agree with him not really. but i knew what he actually ment. thats all. oh but im sure ur ready to say the first word in a sentence begins with a capital letter. and u spell your with y-o-u-r not just u-r. anyway
Now everyone knows that the huge topic in System Wars is sales of a system. But let's see....we can agree on something here......that when you wanna buy a videogame system for example....you can buy a PS3 or a Wii or a 360.....essentially, you can "substitute" a Wii for a PS3 or 360 or whatever. So we can say all three of these are substitutes for each other. Let's isolate the PS3 and Wii for a second since they just launched. Now in the world of simple economics..... we have Good A (Wii) and we have Good B (PS3). Now we have already agree that the two are substitutes of each other and when a cheaper priced Substitute Good is available people are going to purchase it than the other Good. It's simply a simple economic statement. I mean Let's see...
Wii - 436,000 units (x$250 per unit) = $109,000,000 sales PS3 - 244,000 units (x$600 per unit) = $146,000,000 sales 360 - 294,000 units (x$400 per unit) = $117,600,000 sales
So in actual sales dollars the PS3 AND 360 both beat out the Wii for January.....I mean families are buying Wii's not because they're revolutionary, but simply because they'recheaper. And in fact the amount of Wii units they are buying is not so much more than of the PS3s or 360s units that it would make the total sales dollars of Wii's greater than those sales dollars of the PS3 or 360 MikeE21286
it should be worth noting that the wii is actually make a profit without having to sell any games while ps3 and xbox 360 aren't
I mean families are buying Wii's not because they're revolutionary, but simply because they'recheaper.MikeE21286
And how exactly does determining total revenue show this? Ooh, Good A brought in more than Good B. Congrats, you can multiply price times quantity. Now how does that show anything towards motivations of consumer behavior?
And in fact the amount of Wii units they are buying is not so much more than of the PS3s or 360s units that it would make the total sales dollars of Wii's greater than those sales dollars of the PS3 or 360.MikeE21286
To make the total revenue of the Wii greater than that of the PS3 or 360 the Wii would have to outsell them by about a 2:1 ratio. So are you saying that the Wii outselling the competitors by 150-200k units is insufficient? Or do you have some other point?
[QUOTE="MikeE21286"]I mean families are buying Wii's not because they're revolutionary, but simply because they'recheaper.Hoffgod
And how exactly does determining total revenue show this? Ooh, Good A brought in more than Good B. Congrats, you can multiply price times quantity. Now how does that show anything towards motivations of consumer behavior?
And in fact the amount of Wii units they are buying is not so much more than of the PS3s or 360s units that it would make the total sales dollars of Wii's greater than those sales dollars of the PS3 or 360.MikeE21286
To make the total revenue of the Wii greater than that of the PS3 or 360 the Wii would have to outsell them by about a 2:1 ratio. So are you saying that the Wii outselling the competitors by 150-200k units is insufficient? Or do you have some other point?
I'm pretty sure the point was that having a drastically lower price has aided the wii in it's current success. Or was that not obvious? Everyone should stop posting now, because his argument, while lacking every aspect of the Wii success, was a simple look at one aspect.
It's ironic how many people on here blasted the TC but then lack the basic reading comprehension skills to form a legitimate and logical rebuttal.
[QUOTE="jg4xchamp"]ok all u idiots shut up. he isnt talking about what system is making more money. hes trying to justify the stronger wii sales compared to PS3. he is sayin since its cheaper it will sell more. partly tru. but alot of people also bought the thing cause of the buzz behind play games with a motion sensor control. i know cause when i camped out wit my buddies infront of target that was one of the big things behind y people wanted to buy it. so its definantly somethinge new, fresh, innovative, and revolutionary. oh and the ps3 still has no great games for it. the wii has AAA titles like Zelda. on this site itswarioware, but i say warioware is really a AA and zelda is AAA so i switched the 2 but whatever. and has a couple of good AA games. PS3 has one legit exclusive AA resistance, but there are alot better answers for a FPS game. so yeah the ps3 lineup is also pretty much trash. cause all there other good games are allready on 360, which is a cheaper system. i mean thats just plain logic. what idiot pays 600 dollars for a system that plays games he or she can play on a 300-400 dollar system. Blackbond
You have no right to call anybone idiot nor the right to tell anyone to shut up. Maybe when you realize that the first word in a sentence starts with a capital letter then maybe you can. The Wall of Text doesn't help either. Other wise fine you made a valid point. oh by the way i forgot this in my last post. but dont make grammer comments when u spell the word "anyone" with a b instead of a y.
[QUOTE="UssjTrunks"]Nice try but denial won't get you anywhere.MikeE21286
It has nothign to do with denial it is just the way it is. I posted what I posted to show that simple fact.
Again, please educate yourself. Revenue doesn't equal profit. Please, for your own sake, stop while you're already behind.
I AM NOT ARGUING ABOUT PROFIT FOR THE LAST TIME. This in regards to S A L E S. If you people are saying that the price of LOW price of the Wii has nothing to do with it's success than that is ridiculous.
Unfortunately, for you, profit is what matters to hardware manufacturers. Your argument is the epitome of desperation. So, now the discussion is about the pricetags' effects on the console war? I thought we were busy listening to you say that the company pulling in the most revenue was "teh winner".... :|
I'm not even trying to claim a winner at all. An explanation for higher sales figures is all. Look at it from the perspective of someone buying........$250 vs. $600
Than why bring up revenue at all? :| Even that point dosen't make much sense - as the GC was always significantly cheaper than the competition, and that didn't work out too well.
Yeah, and that is why the GC was one of the biggest flops in gaming history. Inherently all lower priced consoles have some type of "advantage" because they are lower priced. For the Gamecube to not even capitalize on this advantage in the least shows how bad it failed. I mean it had some good games and I had one for awhile. But I mean it failed fair and simple.
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