@ermacness said:
@techhog89:
It's not a relevant fact TO YOU. Doesn't make less of a fact. Value and price go hang in hand. Value is viewed very differently between different people. I'm not saying that the price was the determining factor on why the switch have been as successful as it has been, what I'm saying is that price is definitely a factor. As you said yourself "if the switch would've been 400 bucks like the ps4 was at launch, it more than likely would have flopped/failed".
You're trying to say that it's less impressive that it sold that much because it was cheaper. My point is that it doesn't matter because price isn't the main factor. If Nintendo had made Switch $400 but gave it hardware to match that price, it would still sell gangbusters. In top of that, a lot of Switch owners bought a Pro Controller and an SD card, cuts away a lot of the difference. In fact, a 256GB Switch with a Pro Controller at $400 likely still would have sold well.
Finding a price is about equilibrium, not absolute numbers. PS4 would have flopped at $600 most likely; does that discredit it doing better than PS3? Of course not! It would have sold a lot less even at $500 like what Xbox One launched at. Does that make its victory less valid? Nope. Finding the right price for a product is extremely important in determining where it should be in the market and how successful it is. The product itself and the market are what determine what the correct price is, and as such two competing products can have completely different equilibrium prices. Moreover, that price changes over time; if Nintendo had been able to launch a device exactly like Switch in 2012 or 2013, it would have had a higher perceived value and thus equilibrium price; it could have actually done decently at $350 or $400 under those conditions. Likewise, if base PS4 were still $400 it wouldn't have sold anywhere near as well as it has this year (especially in November, though that's a different beast since the PS4 was purposefully priced well below the equilibrium point for Black Friday). Products only affect the value of one another if they're extremely similar (for example, the best launch price for Xbox One would have been $350 without Kinect just because PS4 is extremely similar to it, but more powerful; if they were equal in power, $400 would have been great for both). PS4 and Switch are very different machines, which is why the $300 price point is currently serving both of them extremely well despite the gulf in power while the Xbox One S is getting creamed. Comparing prices like that as is Nintendo is giving the console away at $300 in order to discredit it selling as well as it has been just ignores the big picture.
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