3DS price increase March 2013
- Thread starter _ALF_
- Start date
...Huh?
That's not how I understood the news. I think Nintendo was trying to say that they'll be able to build the 3DS for less money per unit so that the build price is less than the sales price.
For example: Let's say each 3DS currently costs $210 to make right now. That means Nintendo loses $40 each time a 3DS is sold (which they will very likely make back in the long term thanks to software sales and licensing). By March 2013, the production price could drop from $210 to $160 or less, meaning Nintendo earns a profit of $10 per 3DS sold.
Given Nintendo's goals for the 3DS, I think a price increase would be shooting themselves in the foot. With a shotgun.
That's not how I understood the news. I think Nintendo was trying to say that they'll be able to build the 3DS for less money per unit so that the build price is less than the sales price.
For example: Let's say each 3DS currently costs $210 to make right now. That means Nintendo loses $40 each time a 3DS is sold (which they will very likely make back in the long term thanks to software sales and licensing). By March 2013, the production price could drop from $210 to $160 or less, meaning Nintendo earns a profit of $10 per 3DS sold.
Given Nintendo's goals for the 3DS, I think a price increase would be shooting themselves in the foot. With a shotgun.