GameCube sales quadruple!

[Pewter City Geodude]

Good for Nintendo, this is nice to see.

[Thy]

Man, you lower the price of a system buy a couple dollors and everyone wants one. Make games $45 and watch sale completely sky-rocket. Good to see they are also starting s new sales campaign. Way to go Nintendo! Givin' the PS2 a run for it's billion of $.

[Razola]

Interesting...

They have found the perfect price cut. Lose 33% on each system now, but increase sales by 400%. I guess this was all that was needed for people to buy the cube.

If this trend continues, the Cube may beat the Box out in several countries and continue to strengthen its number 2 spot. The Box is going to have to get a price cut soon.

[woz]

what from 1 to 4? lolz.

nah good work nintendo. pretty much expected anyway.

[ILikePokemonP]

Nice.

Cubes went down here as well here from about $299 to $199 but it's over $50 higher than it should be since the Aussie dollar is steadily going up.

In fact, games here should have dropped a fair bit by now but since the dollar went from around 48 cents to 68 cents as it is now, games have actually increased in price. Geez ;o

[SWAMPERT1]

Here in Canada the prices are now $139.99. WOW!!! too bad i already have a cube.

[woz]

In the week following the price cut, Nintendo said it sold 61,000 consoles, up from weekly average sales of 15,000 during August and September. Nintendo's senior vice president of marketing, George Harrison, believes this figure is sustainable throughout the holiday season, and cites the introduction of over 100 new games before the end of this year as a major factor in that belief.

- ign

very nice...higher figure than i expected.

[kurai]

In the meantime..

Nintendo takes a net loss for the first time -

Nintendo of Japan today announced results for the fiscal first half and for the first time since the company's inception it suffered a net loss. The publisher of videogames cited a stronger-than-anticipated Japanese currency for the 3 billion yen (or $27 million, US) net loss. Despite this, Nintendo reiterated its full-year sales forecast of 550 billion yen.

Source: Bloomberg

[Mikey]

Wow, when I saw the price cut I was like "That's it Nintendo has gone insane." But now that I see this, I guess it was a good move from them, unlike their getting rid of RARE. Stupid bums!

[Musourenka]

Originally posted by Raz
They have found the perfect price cut. Lose 33% on each system now, but increase sales by 400%. I guess this was all that was needed for people to buy the cube.

Not quite. They're losing more than 33%. The price tag is not 100% profit -- a large portion of the price is to cover costs. If they sell for $150, not all $150 of that is profit. Thus, dropping the price to $100 is much more than a 33% loss of profit on hardware (it's still a $50 loss in profit per machine, though). One major advantage Sony and Microsoft have over Nintendo (and Sega, when it was still in the console wars) was that Sony and Microsoft make their own parts for the console; Nintendo and Sega had to buy parts from other dealers to make their consoles, meaning Sony and Microsoft have smaller costs involved with making their machines than Nintendo and Sega. I've heard that Sega was actually losing money per Dreamcast during the later stages of the DC's life, though I don't know for sure.

What makes profits for Nintendo are games, not machines (same with Sega). I'm guessing Nintendo is sacrificing a huge profit on hardware and focusing on obtaining its profit from software. Notice that 100+ titles are planned for release by the end 2003.

[Razola]

The money is in the games, but people need stuff to play the games on.

This massive surge in sales means more cube owners which means more game sales.

[dracox]

Originally posted by Musourenka
Not quite. They're losing more than 33%. The price tag is not 100% profit -- a large portion of the price is to cover costs. If they sell for $150, not all $150 of that is profit. Thus, dropping the price to $100 is much more than a 33% loss of profit on hardware (it's still a $50 loss in profit per machine, though). One major advantage Sony and Microsoft have over Nintendo (and Sega, when it was still in the console wars) was that Sony and Microsoft make their own parts for the console; Nintendo and Sega had to buy parts from other dealers to make their consoles, meaning Sony and Microsoft have smaller costs involved with making their machines than Nintendo and Sega. I've heard that Sega was actually losing money per Dreamcast during the later stages of the DC's life, though I don't know for sure.

Microsoft doesnt make any of their parts so I have no clue where you got that from, not sure about sony though. Nintendo on the other hand produces all of their products, they only made deals with the other companies to design the parts.

No one knows how much it costs to produce any of the consoles, though you would think the xbox would cost the most with all the stuff it has built in.

[woz]

Originally posted by dracox
stuff

yeah, i'd imagine sony made most of their own parts because they manufacture other electronic goods, etc. and signed joint deals for manufacturers (like they did with toshiba for the cpu) to make other parts. agreed about the xbox costing the most to manufacture with all the stuff it has in it...but it's no dent in bill gate's wallet.

[The Muffin Man]

Doesn't X-Box lose a bit from the cost of making an XBox in the price as it is? A Pricecut could really deal a blow to Microsofts console gaming division. Sure they won't go bankrupt, but more losses means less profit..

[woz]

Originally posted by The Muffin Man
Doesn't X-Box lose a bit from the cost of making an XBox in the price as it is? A Pricecut could really deal a blow to Microsofts console gaming division. Sure they won't go bankrupt, but more losses means less profit..

the amount of money microsoft makes anyway will balance this out...and i doubt they'll release division specific losses/gains. after all, they don't want to make themselves look bad.

[Mewfour]

Actually, Microsoft is losing money on it's Xbox project. And no, before you go saying that the price cut is a sign of Nintendo's doom, know that the Dreamcast was completely dead after a little under 2 years, sellign for 50 bucks each. Besides, once the support for the Saturn dried up, Sega wouldn't clear a profit for years until they eventually went 3rd party, also leading to the demise of the 50-dollar DC's. And yet, here is Nintendo, with the cube still maintaining a slim margin over the Xbox worldwide, with Capcom and Konami(Namely Kojima) behind the Cube now, still alive and kicking and in it's second year, slashing the price to this absurd level is the best decision Nintendo has done in a very long time. Apparently, people just wanted to buy a Cube for a cheaper price, and Nintendo did just that. Good job, Nintendo. Plus the fact that Nintendo has instant recognition around the world, spanning two generation gaps. For all you Xbox/PS2 fans, when you were playing your console, how many times did your parents scream "Get off that damn Nintendo and go outside!"

Nintendo is like a cockraoch. Sure, it may be unpopular with most people, but it's probably the only thing likely to survive something like a nuclear explosion.

[ILikePokemonP]

Originally posted by Mewfour
And no, before you go saying that the price cut is a sign of Nintendo's doom, know that the Dreamcast was completely dead after a little under 2 years, sellign for 50 bucks each. Besides, once the support for the Saturn dried up...

This article extends on the dreamcast comparison as well as other interesting stuff.

[Max Blaze aka AT#2]

PS2 and XBOX sales go off the roof--> Makes cube look like a wuss-->In order to sale cubes they must cut prices-->Some people will go "Holy Cow thats the cheapest of them all!!!"-------->Nintendo is happy because of the price cut of cube made them happy and got more sales------> This cycle will repeat once a other system needs to,and thats the way life goes

Oh man i can't believe i was gone from the boards 7 months(hasn't posted since then).Geez what else is new;o