Saw a thread on Gamecube sales and related it to the RIAA

[BigJelly]

The RIAA should pay attention to Gamecube sales. Why you ask?

Econ 101 for the RIAA:
X=number of Gamecubes sold before price decrease
$150=price of gamecube before price decrease
$100=price of gamecube after price decrease
$150*X=total money from gamecube sales before price increase
$400*X=total money from gamecube sales after price increase (gamecube sales quadrupled so 4*X*$100)
Since X>0, $150*X<$400*X; therefore:
CHARGE LESS AND SELL MORE = LARGER PROFIT
CHARGE LESS AND SELL MORE = LARGER PROFIT
CHARGE LESS AND SELL MORE = LARGER PROFIT
CHARGE LESS AND SELL MORE = LARGER PROFIT
CHARGE LESS AND SELL MORE = LARGER PROFIT
CHARGE LESS AND SELL MORE = LARGER PROFIT
CHARGE LESS AND SELL MORE = LARGER PROFIT
CHARGE LESS AND SELL MORE = LARGER PROFIT
CHARGE LESS AND SELL MORE = LARGER PROFIT
CHARGE LESS AND SELL MORE = LARGER PROFIT

Why did i repeat it 10 times and shout?
Repeating makes people remember it better.
Shouting because the RIAA people are stuck in the stone age and don't realize that new technology means they need new ways to sell the product (RIAA say this with me: "CD-Burners" and "CDs cost pennies, why is the CD $15?").

I know im stating the obvious and everyone knows this but i just want to ram the point home and it relieves the anger of the stupidity of the RIAA.

EDITED to include Chronos insight:

Originally posted by: Chrono
but you don't keep in mind the costs to produce the system. has the costs gone down significantly? are they making a loss at selling them systems at $99? or are they breaking even? economics...

Relate it to CDs and you'll see my point: CDs = DIRT FUQING CHEAP.

 

[Chrono]

but you don't keep in mind the costs to produce the system. has the costs gone down significantly? are they making a loss at selling them systems at $99? or are they breaking even? economics...

 

[Wozster]

+1 Insightful

 

[Tom]

most CDs ought to cost $9.99 , and go on sale for $7.99 frequently.

They couldn't make enough of them. :gift:

 

[BigJelly]

Originally posted by: Chrono
but you don't keep in mind the costs to produce the system. has the costs gone down significantly? are they making a loss at selling them systems at $99? or are they breaking even? economics...

Relate it to CDs and you'll see my point: CDs = DIRT FUQING CHEAP.

 

[Tom]

Originally posted by: Chrono
but you don't keep in mind the costs to produce the system. has the costs gone down significantly? are they making a loss at selling them systems at $99? or are they breaking even? economics...

two things- I think they designed it so they can sell it for $99 at some point and make a profit.

secondly-if they sell 5-6 Gamecube games per system, which is the reported average, they make a lot of money on the software sales.

 

[00Jones]

Originally posted by: Dead Parrot Sketch

Originally posted by: Chrono
but you don't keep in mind the costs to produce the system. has the costs gone down significantly? are they making a loss at selling them systems at $99? or are they breaking even? economics...

two things- I think they designed it so they can sell it for $99 at some point and make a profit.

secondly-if they sell 5-6 Gamecube games per system, which is the reported average, they make a lot of money on the software sales.

They could also have used cheaper quality parts. :Q

 

[BigJelly]

Originally posted by: 00Jones

Originally posted by: Dead Parrot Sketch

Originally posted by: Chrono
but you don't keep in mind the costs to produce the system. has the costs gone down significantly? are they making a loss at selling them systems at $99? or are they breaking even? economics...

two things- I think they designed it so they can sell it for $99 at some point and make a profit.

secondly-if they sell 5-6 Gamecube games per system, which is the reported average, they make a lot of money on the software sales.

They could also have used cheaper quality parts. :Q

Wario has corrupted Mario's mind. Damn you cruel world!!!!!!!!!

 

[her209]

well, donkey kong my ass mario.

 

[00Jones]

Originally posted by: her209
well, donkey kong my ass mario.

What the hell?

 

[PunDogg]

Originally posted by: BigJelly

Originally posted by: Chrono
but you don't keep in mind the costs to produce the system. has the costs gone down significantly? are they making a loss at selling them systems at $99? or are they breaking even? economics...

Relate it to CDs and you'll see my point: CDs = DIRT FUQING CHEAP.

yeah they could sell CD's for $5.00 and still make money, i mean its dirt cheap to manufacture CD's, look at how many you can get for free at Best buy and such(Burnable CD's), yes they have to burn them and then put them in a cover with booklets and all, but still $5.00 would still let them make money.

Dogg

 

[Schadenfroh]

Originally posted by: her209
well, donkey kong my ass mario.

:Q

 

[Queasy]

Originally posted by: PunDogg

Originally posted by: BigJelly

Originally posted by: Chrono
but you don't keep in mind the costs to produce the system. has the costs gone down significantly? are they making a loss at selling them systems at $99? or are they breaking even? economics...

Relate it to CDs and you'll see my point: CDs = DIRT FUQING CHEAP.

yeah they could sell CD's for $5.00 and still make money, i mean its dirt cheap to manufacture CD's, look at how many you can get for free at Best buy and such(Burnable CD's), yes they have to burn them and then put them in a cover with booklets and all, but still $5.00 would still let them make money.

Dogg

It's not the actual making of CDs that is expensive, it is the studio time to record the music, pay the band members, pay the studio musicians, etc that is expensive.

But, I do agree that the whole music industry needs to rethink the way they do business. You can't keep churning out crap and expect people to pay $15-$20 for a CD when they can get a DVD WITH extras for the same amount.

 

[BigJelly]

Originally posted by: Queasy

Originally posted by: PunDogg

Originally posted by: BigJelly

Originally posted by: Chrono
but you don't keep in mind the costs to produce the system. has the costs gone down significantly? are they making a loss at selling them systems at $99? or are they breaking even? economics...

Relate it to CDs and you'll see my point: CDs = DIRT FUQING CHEAP.

yeah they could sell CD's for $5.00 and still make money, i mean its dirt cheap to manufacture CD's, look at how many you can get for free at Best buy and such(Burnable CD's), yes they have to burn them and then put them in a cover with booklets and all, but still $5.00 would still let them make money.

Dogg

It's not the actual making of CDs that is expensive, it is the studio time to record the music, pay the band members, pay the studio musicians, etc that is expensive.

But, I do agree that the whole music industry needs to rethink the way they do business. You can't keep churning out crap and expect people to pay $15-$20 for a CD when they can get a DVD WITH extras for the same amount.

or less
The news channels always do specials on how mechanics screw people over (everyone must of seen or heard of these). Here's an idea for a story for 60 minutes that would get the highest ratings for the year:
They have reporters go to various stores that sell CDs and DVDs and then ask the music companies why the CD soundtrack costs more than the DVD with hours of special features. But of course it would never happen, but think of the ratings...I'd watch it.

 

[JonTheBaller]

Part eagle part seagull - that's a kookoo bird!

 

[Lonyo]

Originally posted by: Queasy

Originally posted by: PunDogg

Originally posted by: BigJelly

Originally posted by: Chrono
but you don't keep in mind the costs to produce the system. has the costs gone down significantly? are they making a loss at selling them systems at $99? or are they breaking even? economics...

Relate it to CDs and you'll see my point: CDs = DIRT FUQING CHEAP.

yeah they could sell CD's for $5.00 and still make money, i mean its dirt cheap to manufacture CD's, look at how many you can get for free at Best buy and such(Burnable CD's), yes they have to burn them and then put them in a cover with booklets and all, but still $5.00 would still let them make money.

Dogg

It's not the actual making of CDs that is expensive, it is the studio time to record the music, pay the band members, pay the studio musicians, etc that is expensive.

But, I do agree that the whole music industry needs to rethink the way they do business. You can't keep churning out crap and expect people to pay $15-$20 for a CD when they can get a DVD WITH extras for the same amount.

The "studio time to record the music, pay the band members, pay the studio musicians, etc that is expensive." part is covered by the money they make from selling the CD's (ie, profit perCD x #CD's sold)

If you lower profit but increase the number of CD's sold (ie, drop the price), then the money you make for the costs (paying people etc) will go up, so in lowering the price and selling more, you'll have more money to pay the people with. That's the point that original poster was trying to make I think. Make it cheaper, everyone wins.

 

[her209]

see my old thread