Is the 3DS selling at a loss a rumor? or is there proof?

#1ZBug_Posted 7/31/2011 12:44:15 AM
People say that anyone saying the 3DS isn't selling at a loss is spreading a false rumor, but where is the proof that it is?
I'm not trolling or anything. I just want to know, is the 3DS is really selling at a loss?
If so, heres hope that they sell a lot of games.
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#2Baha05Posted 7/31/2011 12:44:51 AM
Depends on a lot of the other costs outside the parts
#3elheberPosted 7/31/2011 1:10:58 AM
EuroGamer estimated that it cost Nintendo about $102 dollars to manufacture a 3DS unit. I really don't know enough about how accurate their estimation is, but it doesn't sound wrong to me.

We all knew $250 was a very inflated price due to excitement at E3 2010, so an $80 drop could likely not be enough to make them sell it at a loss.

I'd take most of this with a grain of salt, anyway, since either way it could be spun by either side:
Nintendo Sells at a Loss: "They'll be bankrupt!" vs. "It's a steal! Must buy!"
Nintendo Sells at a Profit: "They're greedy!" vs. "Nintendo knows how to be profitable!"

Just ignore most of this kind of talk.
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#4avarice117Posted 7/31/2011 1:14:00 AM
well it costs 101 usd to make it but then you factor in labor shipping yada yada yada they may be losing.
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#5TrentHawkinsPosted 7/31/2011 1:16:52 AM

From: avarice117 | #004
well it costs 101 usd to make it but then you factor in labor shipping yada yada yada they may be losing.


There is all of that, but as was brought up in another topic the DS was selling for less with similar build cost, and still at a profit, so unless things have gone up a lot since then...
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#6medmusclePosted 7/31/2011 1:18:43 AM
avarice117 posted...
well it costs 101 usd to make it but then you factor in labor shipping yada yada yada they may be losing.

The labor to assemble is in China. That means labor is a non-factor when you pay someone a Dollar per hour, especially for a single unit which doesn't take long at all for someone who does it constantly.
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#7elheberPosted 7/31/2011 1:19:39 AM
To answer TC's question, I don't know of any source that claims Nintendo will sell at a loss.
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#8AP3BrainPosted 7/31/2011 1:20:36 AM
There are articles on the internet saying they are selling at a loss citing this Bloomberg article: http://www.bloomberg.com/news/2011-07-29/nintendo-plunges-as-3ds-flop-leads-company-to-cut-prices-profit-forecasts.html

But I couldn't find where they said Nintendo is selling each unit at a loss so I think it is basically false information spread by video game sites.
#9PokeclipsePosted 7/31/2011 1:22:29 AM
Yeah, if the reported $102 figure is anywhere close to the actual cost, then there's no way that Nintendo is selling the 3DS at a loss. Distribution and shipping seriously can't possibly add up to the $68 difference.
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#10Starwars4JPosted 7/31/2011 1:39:21 AM
pokemaster252 posted...
Yeah, if the reported $102 figure is anywhere close to the actual cost, then there's no way that Nintendo is selling the 3DS at a loss. Distribution and shipping seriously can't possibly add up to the $68 difference.

You are also aware that retail price is different than wholesale price, right? And besides shipping and distribution there's also storage, advertising, research and development, etc. There's a lot more than the price of parts that go into it, you'd be surprised how fast it adds up.
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