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TalkBack / RE:Memory Card 1019 On Shelves
« on: June 12, 2004, 11:07:05 AM »
Mouse Clicker, what Ian Sane is pointing out is the two marketing approaches that Nintendo has to choose from, this example being the memory card issue.
Nintendo decided to take the marketing approach by increasing the memory card size gradually as to increase revenue (therefore profits: ie. they make more money) through making customers by a new memory card each time one came out. What Ian points out here is that in the long run Nintendo's marketing plan is hurting its sales because people will get discouraged by the initial tiny memory card. Both marketing plans have their pros and cons. And I'm sure that the costs to produce this newest card were not much different when the Cube came out (they are cheap electronic components for crying out loud!). The price you see on a item like that is usually because of a nice big markup a company puts on an item so as to make money, and not the actual cost of the material to make the product.
Nintendo decided to take the marketing approach by increasing the memory card size gradually as to increase revenue (therefore profits: ie. they make more money) through making customers by a new memory card each time one came out. What Ian points out here is that in the long run Nintendo's marketing plan is hurting its sales because people will get discouraged by the initial tiny memory card. Both marketing plans have their pros and cons. And I'm sure that the costs to produce this newest card were not much different when the Cube came out (they are cheap electronic components for crying out loud!). The price you see on a item like that is usually because of a nice big markup a company puts on an item so as to make money, and not the actual cost of the material to make the product.