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Forums - Nintendo Discussion - Will Nintendo opt to lose money initially on the Wii U? Reggie says "NO" Update

Seece on 01 December 2011
scottie said:
Level1Death said:
Yes. They won't have much of a choice.


Lets see, they chose not to last gen, and the gen before, and the gen before that. Oh and every single home console they've ever sold. 

 

Nintendo is coming into the next gen in the best position it has been in since the SNES- N64 transition. They have a choice.

Don't agree, Nintendo are finally being forced to adopt a strategy they're not comfortable with, and conform with the industry more than they would want to. The WiiU won't have the same impact as the Wii, isn't nearly as accessible, nor near fresh.

And lets ignore the strong yen, first ever FY loss, and 3DS selling for a loss shall we, yeah they're really riding that momentum into the 8th gen arnt they ...



 

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oniyide on 01 December 2011
GLHF said:
spurgeonryan said:
Joelcool7 said:

Yes they will, not because its honorable but because its the only way they can compete with Microsoft and Sony.

Nintendo is known for releasing high end low cost hardware. When they launched 3DS they went in a new direction releasing solid quality hardware at a higher price. Fact is even if the hardware is worth that money Nintendo customers aren't accustomed to paying 250$ for a handheld. With WiiU Iwata said the hardware would not be cheap, but after 3DS's failure to maintain market share at launch or meet Nintendo's projections I don't think Nintendo is going to release the hardware too expensive.

Fact is apparently Nintendo is adding compatability for a second controller which will bump hardware costs. They also know Microsoft and Sony will release more powerful hardware and Nintendo needs to ensure their hardware is capable of playing multiplat games. The WiiU hardware will be far more expensive for Nintendo to manufacture then Wii was.

In the end Nintendo will launch WiiU between 300-400$ and they will take a loss of between 50$-100$ on each unit depending on the final hardware and price.

The other option is that Nintendo cuts corners to lower costs. It has been suggested that Nintendo is using cheaper components then initially revealed at E3 last year. That Nintendo is cutting corners to make the hardware cheaper to manufacture if that is the case then Nintendo might launch the hardware breaking even at 300$-400$.

But the only way for Nintendo to avoid losing money on the WiiU is if they cut corners. I talked to a Nintendo hardware development team member at PAX and he said he could not confirm nor deny the reports. However he could say that the rumor Nintendo was cutting costs wasn't like Nintendo, he was like it doesn't sound like something we would do.

My bet is Nintendo launches WiiU as the cheapest next gen console and they take a loss on each unit in exchange for market share and dominance!


The gameCube was a multiplatform system wasn't? They had a lot of games that recieved good scores and at the time it was fairly powerful. We know what happened with the GC and its sales. It seems to me that Nitendo may be going down that route again. The main thing that is different this time around is the giant Wii userbase and its interesting controller. What about that controller? Will it come with the wii U? if so, would that not raise the price even more? 

I think just to get the price down to acceptable levels with this controller will be too much of a loss for Nintendo. It should be doable without it though. Add in a Mario game bundled day one and it wont matter. Everything I just said will go up in smoke.

I feel like the Wii U controller is far too essential. Wii U games (especially early ones) will be based around it. I can't imagine the system being sold without one. Maybe Nintendo might have to take a big loss here. 

THis, why the hell, would Ninty sell a WiiU withoug the tablet controller, imagine if they would have sold Wii without the motion controller. The tablet is whatmaked the Wii U unique, otherwise who would buy it?? Just to play some games that would have been already available on much cheaper consoles?? makes no sense. Ninty just might have to take a loss or they could be ballsy and pull a PS3, or just cheap out on hardware. I rather they go with the first option.

@JoeCool  one of the few times i agree with you.



bobgamez on 01 December 2011

You guys got to realize that nintendo wont include a DVD player, that already lowers some cost. THe 360 right now is at a price of 199.99 dollars, and the price with kinect is 99.9 dollars. They are finally making a profit, and in a years time it will be even cheaper, to about 200 dollars with Kinect.

Nintendo is planning on making it a little more powerful, so I'd say an increase in 50 bucks. And the wiiu controller is about the same as kinect so I'd say it release at a 250 price point while making a profit.



enrageorange on 01 December 2011
bobgamez said:
You guys got to realize that nintendo wont include a DVD player, that already lowers some cost. THe 360 right now is at a price of 199.99 dollars, and the price with kinect is 99.9 dollars. They are finally making a profit, and in a years time it will be even cheaper, to about 200 dollars with Kinect.

Nintendo is planning on making it a little more powerful, so I'd say an increase in 50 bucks. And the wiiu controller is about the same as kinect so I'd say it release at a 250 price point while making a profit.

thats crazy. First of all your math doesn't add up. 360 is 200$ and kinect is 100$. You said the wii u will cost 50$ more and the controller the same as kinect. That would mean it costs $350 not $250

Second of all, the wii u a least according to rumored specs so far is going to be pretty significantly more powerful then the 360 and ps3. There is no way the touchpad is as cheap as a kinect to make unless it is garbage. You are comparing what is basically going to have to be a tablet to a camera. Black friday sales aside, there are ps3 and 360 skus still selling for $300+. I really can't see nintendo realistically pricing their console for below $350 and wouldn't be suprised if its $400.



turtuls on 01 December 2011

I think they wont lose money at a loss because they will make the tablet do some crazy interaction crap with the ds/3ds like the playing with the touch screen with the tablet and using your tv as the top screen and if you got a 3d tv you can play 3ds games on it and everyone will be going how revolutionary that is and those hardcore that bought that gameboy player for the gamecube will be willing to buy it at any price. Also, a new wii sports will help sales.



don't waste time

3DS FC 4914-3563-4510

NNID : turtuls

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Lucas-Rio on 01 December 2011
Joelcool7 said:

Yes they will, not because its honorable but because its the only way they can compete with Microsoft and Sony.

Nintendo is known for releasing high end low cost hardware. When they launched 3DS they went in a new direction releasing solid quality hardware at a higher price. Fact is even if the hardware is worth that money Nintendo customers aren't accustomed to paying 250$ for a handheld. With WiiU Iwata said the hardware would not be cheap, but after 3DS's failure to maintain market share at launch or meet Nintendo's projections I don't think Nintendo is going to release the hardware too expensive.

Fact is apparently Nintendo is adding compatability for a second controller which will bump hardware costs. They also know Microsoft and Sony will release more powerful hardware and Nintendo needs to ensure their hardware is capable of playing multiplat games. The WiiU hardware will be far more expensive for Nintendo to manufacture then Wii was.

In the end Nintendo will launch WiiU between 300-400$ and they will take a loss of between 50$-100$ on each unit depending on the final hardware and price.

The other option is that Nintendo cuts corners to lower costs. It has been suggested that Nintendo is using cheaper components then initially revealed at E3 last year. That Nintendo is cutting corners to make the hardware cheaper to manufacture if that is the case then Nintendo might launch the hardware breaking even at 300$-400$.

But the only way for Nintendo to avoid losing money on the WiiU is if they cut corners. I talked to a Nintendo hardware development team member at PAX and he said he could not confirm nor deny the reports. However he could say that the rumor Nintendo was cutting costs wasn't like Nintendo, he was like it doesn't sound like something we would do.

My bet is Nintendo launches WiiU as the cheapest next gen console and they take a loss on each unit in exchange for market share and dominance!


Nintendo won't release a console at 400$, this is not possible. If they do this it will be a flop and they know it.

300$ is really the maximum they can price it, and still it is expensive. The Wii U will only be successful at 250 in my opinion.



Cobretti2 on 01 December 2011

i am sure major shareholders will have something to say about whether it sells at a profit or not.at launch.



 

 

Beuli2 on 01 December 2011

It's morel ike they are choosing to loose money all it's life the way it is.



Above: still the best game of the year.

Beuli2 on 01 December 2011
blkfish92 said:
Yes they will be ready to lose money, it wont matter the wii made plenty and some losses most likely wont affect them much.

All that money went to some non-selling games that are releasing this year's end.



Above: still the best game of the year.

sepoer on 01 December 2011

Yes they will, this what sony doing with Vita. Vita alone have a nice price, but when we need more capacity for more downloadable PSP games, installing game, music, video, and picture we must buy memory.
and if nintendo playing the right card, I'm sure Wii U will have a great launching, and don't forget what make PS2, Wii and all Nintendo handled at a launch success recipe , full compatibilty with their previous console games! Like we allready know, Wii U had backward compatibility with dozen of great Wii Games, and another Wii games. So if Nintendo launching Wii U with or without WiiPad that's great decision.