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Why I choose HD DVD over Blu-ray
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DVD Profiler Desktop and Mobile RegistrantStar Contributorcmaeditor
Registered: April 14, 2007
United States Posts: 433
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Quoting nolesrule:
Quote:

And would HD DVD really be cheaper if Toshiba wasn't taking a loss on every player sale in order to increase sales volume? It's an unsustainable economic model where even the cheap off-brand Chinese manufacturers can't compete for a profit.


Isn't this the same model Sony is using by losing money on every PS3 sold. Sony taking a los on every PS3 sold to give themselves the largest install base of Blu-Ray players and it's no big deal, but if Toshiba decides to use the same tactic it's an unsustainable economic model to increase sales volume and unfair competition? Pot meet Kettle.
Chris
DVD Profiler Desktop and Mobile RegistrantStar ContributorNewEnglander
Registered: 11/13/2003
Registered: March 13, 2007
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Quoting cmaeditor:
Quote:
Quoting nolesrule:
Quote:

And would HD DVD really be cheaper if Toshiba wasn't taking a loss on every player sale in order to increase sales volume? It's an unsustainable economic model where even the cheap off-brand Chinese manufacturers can't compete for a profit.


Isn't this the same model Sony is using by losing money on every PS3 sold. Sony taking a los on every PS3 sold to give themselves the largest install base of Blu-Ray players and it's no big deal, but if Toshiba decides to use the same tactic it's an unsustainable economic model to increase sales volume and unfair competition? Pot meet Kettle.



The video game business is all about selling the hardware at a loss for the first few years and making your money on software sales. Every gaming console has always lost money when it came out. Be it Nintendo, Sony or Microsoft. It's the nature of the beast.

Where this differs from DVD/HD DVD/Blu-ray players is that you have other CE's that want to make money, not lose money. Well, in the case of HD DVD, there is really only one CE (Toshiba) to lose the money. As for the others, the only CE with a studio is Sony, so they are really the only company that can recoup their losses on siftware sales. The other CE's have to rely on the hardware sales to profit. With Toshiba going so low, what other CE's would want to lose money on going HD DVD?
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DVD Profiler Unlimited RegistrantOverseer
Where's my damn statue?!
Registered: March 17, 2007
United States Posts: 175
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Quoting pplchamp:
Quote:
The video game business is all about selling the hardware at a loss for the first few years and making your money on software sales. Every gaming console has always lost money when it came out. Be it Nintendo, Sony or Microsoft. It's the nature of the beast.

I guess Nintendo didn't get this memo as the Wii has been designed to be profiltable from day one.
Gotta nip it in the bud, Andy!
DVD Profiler Unlimited RegistrantRossRoy
Registered: March 13, 2007
Posts: 793
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Quoting pplchamp:
Quote:

The video game business is all about selling the hardware at a loss for the first few years and making your money on software sales. Every gaming console has always lost money when it came out. Be it Nintendo, Sony or Microsoft. It's the nature of the beast.


I guess Nintendo didn't go to the same marketing school as Sony and MS

http://www.gamesindustry.biz/content_page.php?aid=21218
http://arstechnica.com/news.ars/post/20060915-7752.html
http://www.reghardware.co.uk/2006/12/18/nintendo_wii_profit_on_production/
DVD Profiler Desktop and Mobile RegistrantStar ContributorNadja
Small and broken
Registered: March 13, 2007
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Not quite, Overseer, the Wii was certainly released at a loss to begin with, however Nintendo managed to turn this around with uncanny speed due to the demand outstripping the supply so.
DVD Profiler Unlimited RegistrantOverseer
Where's my damn statue?!
Registered: March 17, 2007
United States Posts: 175
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Quoting Nadja:
Quote:
Not quite, Overseer, the Wii was certainly released at a loss to begin with, however Nintendo managed to turn this around with uncanny speed due to the demand outstripping the supply so.

Please read the links by RossRoy above you.
Gotta nip it in the bud, Andy!
DVD Profiler Unlimited RegistrantBattling Butler
Registered: March 13, 2007
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please see the Nov 13 Audioholics article about Howard Stringer and Sony in the HD DVD and Blu-ray forum
DVD Profiler Desktop and Mobile RegistrantStar ContributorTheMadMartian
Alien with an attitude
Registered: March 13, 2007
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Quoting Nadja:
Quote:
Not quite, Overseer, the Wii was certainly released at a loss to begin with, however Nintendo managed to turn this around with uncanny speed due to the demand outstripping the supply so.


Overseer and RossRoy are correct.  The Wii was making money right out of the gate.  It is the only console that can make that claim.
No dictator, no invader can hold an imprisoned population by force of arms forever.
There is no greater power in the universe than the need for freedom.
Against this power, governments and tyrants and armies cannot stand.
The Centauri learned this lesson once.
We will teach it to them again.
Though it take a thousand years, we will be free.
- Citizen G'Kar
DVD Profiler Unlimited RegistrantStar ContributorLithurge
Paralysis by analysis
Registered: March 13, 2007
Posts: 1,263
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Well the links are all 'Nintendo says' with nobody mentioning the cost of motion sense R&D or online content/hosting.  Even publicly released sales figures won't always give a totally clear picture as to profitability of something.

Not saying either view is correct, just suggesting what's said and what's done isn't necessarily the same.
IVS Registered: January 2, 2002
DVD Profiler Desktop and Mobile RegistrantStar ContributorTheMadMartian
Alien with an attitude
Registered: March 13, 2007
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Here is a link that is not a 'Nintendo says' article.  I have included the important bit below,

Quote:
Nintendo President Satoru Iwata promised from the very beginning that the Wii console would generate a profit on day one. While Nintendo has not disclosed exactly how much it costs them to make the Wii console, a new report in the Financial Times cites Nikko Citigroup analyst Soichiro Fukuda who estimates that Nintendo's gross profit per console is 1,500 yen in Japan, 5,600 yen in the U.S. and 8,500 yen in Europe. That equates to about $13, $49 and $74, respectively.
No dictator, no invader can hold an imprisoned population by force of arms forever.
There is no greater power in the universe than the need for freedom.
Against this power, governments and tyrants and armies cannot stand.
The Centauri learned this lesson once.
We will teach it to them again.
Though it take a thousand years, we will be free.
- Citizen G'Kar
DVD Profiler Desktop and Mobile RegistrantAgrare
Registered: May 22, 2007
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Also, the third article listed by RossRoy wasn't 'Nintendo says' either

-Agrare
DVD Profiler Unlimited RegistrantStar ContributorLithurge
Paralysis by analysis
Registered: March 13, 2007
Posts: 1,263
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Quoting Agrare:
Quote:
Also, the third article listed by RossRoy wasn't 'Nintendo says' either

-Agrare


Yes I did acknowledge that when I first typed a response, but didn't add it back when I edited it before posting. That one was a report of what another magazine had worked out about the hardware costs compared to retail price. Again it didn't acknowledge anything in terms of R&D or labour costs etc...
IVS Registered: January 2, 2002
DVD Profiler Unlimited RegistrantStar ContributorLithurge
Paralysis by analysis
Registered: March 13, 2007
Posts: 1,263
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Quoting Unicus69:
Quote:
Here is a link that is not a 'Nintendo says' article.  I have included the important bit below,

Quote:
Nintendo President Satoru Iwata promised from the very beginning that the Wii console would generate a profit on day one. While Nintendo has not disclosed exactly how much it costs them to make the Wii console, a new report in the Financial Times cites Nikko Citigroup analyst Soichiro Fukuda who estimates that Nintendo's gross profit per console is 1,500 yen in Japan, 5,600 yen in the U.S. and 8,500 yen in Europe. That equates to about $13, $49 and $74, respectively.


Again this is somebody (albeit an informed somebody) speculating. Working for a company that has city analysts talking about it and seeing what's put out from the company and what's reported in the press, you learn to play devil's advocate.

I do believe Nintendo do make a profit, they've been very smart in what they've done with the Wii, bucking the 'power console' trend and pitching at a very different and far larger segment of the market.
IVS Registered: January 2, 2002
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