I think there is something wrong with your graph... It confused me the instant that I had seen it. "When the prices are high the demand is low" Well Price is on the left side and apparently if something costed $1,000 it would be in high demand..... I think you need to switch the Quantity and Price labels. Then your graph will make more sence.... (or switch the Supply and Demand labels.)
No, it's setup correctly. Demand is on the bottom and it's based monthly. So as you move to the left, the number of units demanded per month decreases.
It's a marketing thing. It just underperforms the rest of the competition if it were to be priced the same. The genius of Nintendo was in identifying the market segment of casual/family based gaming. They failed at identifying the price break point where they could implement their strategy for profit-max.
The question is whether or not the wii would have even become as popular/scarce as it has at $400.
Oh indeed. I'm just saying they could have pulled off the same thing at a higher price (I'm sure.) It's what... $250, looks like they could have had it at $350 and had practically the same effect. Then they could have rocked price drops as well (they haven't had any of those yet.) If I was Nintendo, I think I would have wanted to be able to meet the demand for the units this holiday season. Instead, there are going to be people buying 360s instead.
See, that's the beauty of economics. It doesn't matter how much I THINK it should be. The MARKET is what determines what the market price should be. Check ebay and see what they're going for.
No, I think that's one of the confusing parts. If you slide your finger down the price and look at where that point is on the demand curve, you'll see that it's further to the RIGHT which means Q (quantity) is going up. Think about it this way. Do you have a PS3 now? Would you if they were $25? I'd probably get one for both TVs at that price. The Quantity Demanded would go way up. How about if they were $10,000? VERY few people would buy then.
Which part? I'm happy to explain. I kind of assumed you would have seen one of the older ones where I explained the supply and demand curve. Without understanding that it'll be confusing.
hey milkbon3, i agree with u.. i wanted to get a 60gb ps3 for christmas but as i can see i might have to get the goddamn 80 gb... the point is i will probably get less than i really want!!!!
yay first time i have the first comment. this vids are more interesting than u think. ill usually click out on something like this but u make it so good lmao. good vid bro.
I think you did this exactly right. I'm doing a project and it all adds up right :)
333matt1230 9 months ago
You're awesome. :-)
kaliyogini 1 year ago
Excellent.
HareGuuLover 3 years ago
I think there is something wrong with your graph... It confused me the instant that I had seen it. "When the prices are high the demand is low" Well Price is on the left side and apparently if something costed $1,000 it would be in high demand..... I think you need to switch the Quantity and Price labels. Then your graph will make more sence.... (or switch the Supply and Demand labels.)
TheConSept 3 years ago
No, it's setup correctly. Demand is on the bottom and it's based monthly. So as you move to the left, the number of units demanded per month decreases.
miltownkid 3 years ago
@TheConSept hahaha consept doesn't now how to read a graph.
CrackHeadForLife420 1 year ago
i got my wii 1 week after it came out, for £180, i guess i was pretty lucky.. =D
Ghosthand 4 years ago
It's a marketing thing. It just underperforms the rest of the competition if it were to be priced the same. The genius of Nintendo was in identifying the market segment of casual/family based gaming. They failed at identifying the price break point where they could implement their strategy for profit-max.
The question is whether or not the wii would have even become as popular/scarce as it has at $400.
That's what I know.
bummpy 4 years ago
Oh indeed. I'm just saying they could have pulled off the same thing at a higher price (I'm sure.) It's what... $250, looks like they could have had it at $350 and had practically the same effect. Then they could have rocked price drops as well (they haven't had any of those yet.) If I was Nintendo, I think I would have wanted to be able to meet the demand for the units this holiday season. Instead, there are going to be people buying 360s instead.
miltownkid 4 years ago
There's one thing wrong with the graph though. You are assuming what the demand curve would look like, especially the slope!
I know you were trying to just point out they should have priced it higher, and thats ok :)
neokn3 2 years ago
yu would be a could buisness teacher. excellent video.
suppmarkxb 4 years ago
I would like to take personal credit for this video. Since it was ME who he spoke to about Mario Galaxy....woot.
Wassup Miltown. Booya!
tagliarino 4 years ago
HEY! It was you! :) Yeah, between that conversation and my studying brought about these thoughts.
WHAT UP!!
miltownkid 4 years ago
dont u think 400 is a bit to much for a wii?
Grisu69 4 years ago
See, that's the beauty of economics. It doesn't matter how much I THINK it should be. The MARKET is what determines what the market price should be. Check ebay and see what they're going for.
miltownkid 4 years ago
ya ur right, im taking economics in school this year and its by far the most interesting class i have.
Grisu69 4 years ago
great video! for u guys who dont understand it go look at MTK's previous economics vids cos he explains the graphs ;)
matt9339 4 years ago
Yeah. It seems complicated at first, but really it's just a bunch of simple things mashed together.
miltownkid 4 years ago
No, I think that's one of the confusing parts. If you slide your finger down the price and look at where that point is on the demand curve, you'll see that it's further to the RIGHT which means Q (quantity) is going up. Think about it this way. Do you have a PS3 now? Would you if they were $25? I'd probably get one for both TVs at that price. The Quantity Demanded would go way up. How about if they were $10,000? VERY few people would buy then.
miltownkid 4 years ago
base xbox 360 is 279.00 if they keep below that they may have a chance of selling more.. hell i dono.. i understood what ya ment.
diovisi 4 years ago
wow. i loved the video. madd ups.
sweetdaddycoconut 4 years ago
Sorry but your Diagram is kinda confuseing
Holesale00 4 years ago
Which part? I'm happy to explain. I kind of assumed you would have seen one of the older ones where I explained the supply and demand curve. Without understanding that it'll be confusing.
miltownkid 4 years ago
hot...
fruityloops 4 years ago
SWEET JESUS
all this did was confuse me :(
I think I might cry my self to sleep tonight...
kingtaco11 4 years ago
Feel free to ask questions.
miltownkid 4 years ago
beat boxing! haha. this was very interesting; i like.
kozes 4 years ago
black friday is coming soon should i buy the ipod touch or nintendo wii?
DarkGsus 4 years ago
nintendo wii
kozes 4 years ago
mmmm nintendo wii :)
XxMaRcOxX 4 years ago
thats real gaming talk right there
daman999888777 4 years ago
Nice video. And this holiday season will be a bitch to handle.
milkbon3 4 years ago
hey milkbon3, i agree with u.. i wanted to get a 60gb ps3 for christmas but as i can see i might have to get the goddamn 80 gb... the point is i will probably get less than i really want!!!!
kay0kay 4 years ago
Why buy a system with only 3 stand out games?
Get yourself a Wii or Xbox 360. Many more games to play.
milkbon3 4 years ago
Yeah, guess thats my only option..
kay0kay 4 years ago
its gana be a bitch for who want the wii for christmas im i was lucky when i got mine i walked into gamestop and thay just got one
GUITARHEROSK8R 4 years ago
yay first time i have the first comment. this vids are more interesting than u think. ill usually click out on something like this but u make it so good lmao. good vid bro.
TuxcifieD 4 years ago
I try to use real world shit connected to shit I like, thus creating PIMP!
miltownkid 4 years ago