Myth of Console Sales

[Blu-Ray Buckeye]

Originally Posted by dialog_gvf

Yes, the price point is definitely the chief reason for the high unit sales of the Wii.

But, as a CFO, isn't cash flow and earnings important too?

Sony is subsidizing every PS/3 (as is Microsoft to a lesser amount with 360s), while Nintendo is reportedly making a profit on the consoles, and just had to boost their earnings forcast for the 3rd or 4th time.

Gary

Of course, profit is key. However there's no other market niche I can think of where people just accept units as the primary measure like they do in consoles. Movies quote only the box office take ignoring that prices have always risen over time.

Also they clearly have a different model for long-term profits. I understand the need to grow the user base but someone also has to consider the price rather than just inane blanked statement about how Wii is winning.