Nintendo DSi Handheld Game Console $145 at Dell

I think the DSi was released in the US less than a year ago. Doesn't it seem early to be offering a discount? I understand why the DS is on sale...but the DSi too?

A lesson in marketing for #1:

Problem:
Economy bad = slower sales

Slower sales = less revenue

Less revenue = lower profits

Lower profits = no bonus for Marketing Dude

Solution:
Lower price = increased sales

Increased sales = higher revenue

Higher revenue = more profits

More profits = big bonus for Marketing Dude.

Its all a question of breakeven sales. If the company can sell more units by offering them at a lower price that still covers costs then they will actually generate more profit than they would if they do not lower the price and don't sell any units.

Isn't that what I just said, #3?

Not really #4.

#3 made no mention of the marketing dude.

Bah.. Damn double submitting.

Neat! Actually seems like a high price to me. But yeah, I think we all pretty much understand the "we'll make it up in volume" concept.

I don't agree with you guys. They may not be making squat on these things. As with any console they make the money on licensing when you buy games. Mfr's often lose money on each console they sell just hoping to get it back when you go to GameStop to pick up the new Mario or GTA game.

#8 Thanks for the nuanced reasoning. I think we need to know more about the console business model before assuming that volume discounts will work. Another thought: you maintain the "prestige" of a product by keeping the price higher than expected (like Apple products). By dropping the price on the DSi early, it loses that advantage.

Let us not forget that by keeping the DSi at the top of the sales chart they get free publicity and a perception in the public of extra value of the product. My money is on Nintendo's genius Marketing Dude in the long run.

suck balls #4.