Unless you have insider information/proof, this is just speculation and I don’t believe it based on their past greedy little money grabs.
The funny thing about Disney, and believe me, I don’t want to defend them here, is that they’ve found ways to admit and fit far more people into the park as demand rose for a thing that inherently has fixed supply. More or less the same thing is happening with GPUs and memory right now as AI demand is sucking up so much supply and they can’t be produced any faster. The supply can’t increase, so the prices go up. They have to. Nintendo and Sony both know they stand to make more money after the fact if they sell you a cheaper console, but they can’t lose $200 per unit either, or there’s very little chance they make a profit on it ever.
thermal_shock@lemmy.world 1 day ago
ampersandrew@lemmy.world 1 day ago
Insider information of what? Increases for memory and GPUs are covered by basically every news outlet that covers tech right now. That $7 to copy a file is exactly why they’d want to get a Switch into your home for cheaper if they could. You get multiple Switches in the same home by making it accessibly priced, and Nintendo knows that. Walled gardens suck, and that’s where their money is made. Right now, Nintendo is absorbing some extra costs above and beyond where they expected (like tariffs) by charging more for accessories rather than raising the price of the base unit, but there’s a good chance they lose their stomach for keeping the Switch 2 price where it is as we run into more of these supply issues.
As far as Disney, don’t care. Unless there is armed security guarding your shit, $175 is just extortion.
Even ignoring the fact that cars and parking them is about the least efficient use of land you can have, the only alternative is that they keep prices low but then there’s a lottery or a waiting list to get in. No secret as to why prices just went up.
thermal_shock@lemmy.world 1 day ago
Feel like you just want to argue, I’m gonna leave now.
And by proof, show that they are not making profit on sales of the hardware. I assert they absolutely are and will just for $$$.
ampersandrew@lemmy.world 1 day ago
We all want things to cost less, but as adults, there are realities to acknowledge as to why they can’t. I never said they’re not making profit on their hardware, but their actions (announcing prices and then raising them above their competitors after tariffs were revealed) indicate that their margins are probably not very high. This report that we’re commenting on shows that even being the only new console this year is not enough to make it a hot holiday item.
hzl@piefed.blahaj.zone 1 hour ago
Consoles are normally sold at a loss if I remember correctly. Companies tend to bet on people buying enough games to make up the difference, because generally people do. Most people aren’t sitting on a console with only 3 or 4 games for it.