To those criticizing the amatuer financial analysis... well, obviously Nintendo's own analysis was flawed. They've painted themselves into a corner where the price they're asking isn't what the market will bear, at least in terms of the volume they're looking for.
I know that technically they're not, but in Nintendo's position I'd view my negative margin on unit sales as sunk costs. If they can't get their cost down then the money is as good as spent. The decision then turns how much of a hit do you take in an attempt to move unit sales back to their original target.
That's where the reluctance to drop price comes from, IMO; if their original model of price vs. sales was flawed, can they trust future guidance without reworking the model? I know I would at least want to understand why my sales were so far below projections before I rushed into another decision regarding price.
BTW, not all of us are amateurs
I know that technically they're not, but in Nintendo's position I'd view my negative margin on unit sales as sunk costs. If they can't get their cost down then the money is as good as spent. The decision then turns how much of a hit do you take in an attempt to move unit sales back to their original target.
That's where the reluctance to drop price comes from, IMO; if their original model of price vs. sales was flawed, can they trust future guidance without reworking the model? I know I would at least want to understand why my sales were so far below projections before I rushed into another decision regarding price.
BTW, not all of us are amateurs