30th November 2012, 5:54 PM
Dark Jaguar Wrote:Me neither. I get that, but then I think that even if they get less yen, if the buying power is greater, doesn't it balance out?
You're looking at it from the wrong perspective. Nintendo gets 24,756 Yen from the sale of one Wii U in America, but 26,260 Yen from the sale of one Wii U in Japan. A total of 51,016 Yen. Yet both systems cost the same for Nintendo to produce. If both systems were sold in Japan instead, that would be a total of 52,520 Yen. So, in essence, Nintendo has left 1,504 Yen sitting on the table by choosing to sell that other Wii U system in America. Multiply that by, say, a million systems and Nintendo has given up the equivalent of $18,252,393 to sell those million Wii U's in America versus selling them in Japan.
That's obviously a price Nintendo is willing to pay, since the upside of doing business in the United States is worth far more than that.
Sometimes you get the scorpion.