So I'm reading today's PA update and being amused as usual… Then I got past the comic to meat of Tycho's rant today. This kind of thing makes me happy… Why, you ask? Because if PA hadn't pointed it out I would have never read this extremely funny editorial about the Wii price point.
It's from Joystiq contributor, Vladimir Cole:
One final point: if a company doesn't believe in its product enough to take a small loss at launch, what does this risk averseness say about executive confidence in the long-run prospects of the product? A larger, up-front investment indicates stronger confidence that a product will eventually be successful enough to pay for initial investment.
That's hilarious. Really. Because Nintendo sets a price point on their hardware that doesn't lose them money on each console they have no faith in their hardware. That's quit an interesting logic free fall there.
Tycho reacted thus:
It's a Goddamn retard rodeo over there. It's fun to think about the author tippity-tappin' this one in while he eats light bulbs in the last car of the circus train.
Happy happy joy joy!
Of course, Mr Cole needed to respond to that and clarify his point. Which he said he wasn't making in the first place:
Assume Nintendo is selling a white-colored Wii at a profit of X and the tangerine-colored Wii at a profit of X+Y. That is, the price (and hence, Nintendo's profit) on the tangerine Wii is greater than the price (and profit) on the white Wii. Which of the two devices would a rational consumer choose, all else equal?
What's he trying to say is, you get "free" hardware when you buy a 360 or PS3, but not when you buy a Wii. Which is an extremely backward argument. As a gamer, what do I care if Microsoft or Sony loses money on their console? I buy what I like and when I can spend less on what I like, I'm happy. Do I feel I got jipped because Nintendo made a buck off something I purchased? I'd hope not and if I do, I'm being plain crazy.
This argument doesn't make any sense. I think I'm getting more free stuff by spending twice as much so that's a better deal. I realize this is America (for some of us) and we're all about getting free stuff, but explain to me how you get free stuff by, and this is the good part, spending more money. I'd LOVE to hear how that works. Really.
What Would Matt Do: Smack Vladimir around. He's really lost it here. It's sound like weird anti-Nintendo fanboi crazy talk.
2 Comments
So, if you buy the same product for twice as much, but it’s on sale for 50% off, you’re getting a way better deal! Math is awesome!
This makes no sense, analogy man… I can’t tell whether your arguing with me or what.