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Forums - Nintendo Discussion - When Will Wii be $150

LordTheNightKnight on 20 February 2011
Joelcool7 said:

Your right Nintendo spent around 105-mill on R&D for the Wii each year. But since then Nintendo has spent over 350-mill on R&D.

As I said their were reasons for the hardware being priced so high. I named a few and R&D is another. I was simply saying their priced it to turn a profit. Microsoft who lost money on every unit sold still ended up being profitable only two years into its life span (Including R&D), are you saying Nintendo which sold for a profit needed to price the console at 250$ to break even?

Of course Nintendo was making a crap load on each unit, they didn't need to sell many units to make up the R&D costs etc...etc...

Again I am not saying Nintendo did anything wrong. Simply saying they turned a healthy profit off each unit sold. Which Reggie himself has said. Whether the console cost 70-150$ even if it cost 200$ Nintendo still over priced it to turn a profit.

P.S- Any smart company is going to price something higher then it costs them to make so that they turn a profit.


Sorry. I just so often saw those comments used in the cotext of accusing Nintendo of gouging. Glad to see you meant different.



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs

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TomaTito on 20 February 2011

No need to cut the price, by what they learned with NSMB, only desirable software is needed.



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LordTheNightKnight on 20 February 2011
TomaTito said:

No need to cut the price, by what they learned with NSMB, only desirable software is needed.


But of course some people don't want to acknowledge that is what sells systems.



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs

Leunam on 20 February 2011

As others have said:



Ninten78 on 20 February 2011
Conegamer said:

Probably this:

 

  • 3DS launches, great success
  • E3 occurs, Wii2/redesign is announced
  • Price cut few weeks after E3
  • SS few weeks after Price Cut, bundled with "gold Wii"
  • Special Edition Wii out in Holidays (Zelda 1 installed, bundled with SS)
  • Re-design is released
  • Wii Relax (vitality sensor) and another game (Pikmin 3? NSMBWii2?) released around mid-november, kills COD effect
  • Launch new Wii around about May 2012
  • Cut price of current Wii to $99 August 2012
With this, I can see the Wii selling around 20mil this year, and around 15mil the next, without hurting sales for 3DS or Wii2. 


So 105 M 2011
120 M 2012 Im all for that!!!!



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Mummelmann on 20 February 2011

Ah, the good old "price doesn't matter" thesis. Do you guys seriously believe this? Are you saying that the PS3 would have pulled the same numbers it is doing at the old 600$ price mark with it's current game library and 3rd party support? Think this through now, think it through for real.



Khuutra on 20 February 2011
Mummelmann said:

Ah, the good old "price doesn't matter" thesis. Do you guys seriously believe this? Are you saying that the PS3 would have pulled the same numbers it is doing at the old 600$ price mark with it's current game library and 3rd party support? Think this through now, think it through for real.

I think it better to say that price matters as a factor in the larger equation. The people who say "software sells systems" would probably more accurately represent themselves by saying "compelling software can achieve sales that price drops can't".



Mummelmann on 20 February 2011
Khuutra said:
Mummelmann said:

Ah, the good old "price doesn't matter" thesis. Do you guys seriously believe this? Are you saying that the PS3 would have pulled the same numbers it is doing at the old 600$ price mark with it's current game library and 3rd party support? Think this through now, think it through for real.

I think it better to say that price matters as a factor in the larger equation. The people who say "software sells systems" would probably more accurately represent themselves by saying "compelling software can achieve sales that price drops can't".


Exactly. The whole thing is more advanced than simply; software = massive sales. There are a multitude of factors, a fact that I've been chanting for years in here to no avail. What happens if the Wii's price is cut to 150$ and sales take off like hell? How is that going to be explained? I'm not saying it will happen but a strategic price cut could ensure a really good holiday season, the combination of a price cut and good software along with good marketing can truly work wonders. These people are the same who scream "Kinect only sells because of the 500 million dollar marketing campaign!" How can that be? Software sells things, nothing else.



Beuli2 on 20 February 2011

There won't be a price cut. Price cuts cut the revenue. The price cut effect wears down after some time, leaving the sales at the same levels they were before the pricut, but with less revenue.



Above: still the best game of the year.

Squilliam on 20 February 2011
Khuutra said:
Squilliam said:

If they cut the price by $50 they'll cut their hardware margins by at least 50% and they'd have to sell at least twice as many units to make the same profit as before. I don't really see them cutting the price as theres no real objective reason to maximise market share at this juncture unless they have an oversupply of Wii's which they need to clear.

But Squilliam, haven't you heard that marketshare matters more than mad profits?

Yep it matters heaps. Until the shareholders ask Nintendo to justify what return they have recieved for their investment that is!

Seriously now margins and revenue fall substantially whenever any console maker cuts the price, you have to be pretty desperate to make a steep cut (Sony) or have other very good reasons to do so. Thats the reason why Nintendo and Microsoft both have hardly cut the price, instead they added value.



Tease.