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

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

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.



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



 

 

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.

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.

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.



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spurgeonryan said:

Shows that Nintendo may be willing to keep the price really low when it first comes out. I wonder if they would be willing to sell the pad controller seperate to make this happen? They already have the current controller that is compatible with the Wii U right? So just keep the pad controller seperate and sell it like Microsoft sells the Kinect. Or even bundle it in a seperate offer for a higher price.

Great idea. That way it can have like 20-30% adaption rate among Wii-U userbase which ensures as much 3rd party software support as SixAxis got ;)



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I think 300$ is the maximun price that Nintendo can sell the wii U if they want it to be a success, being the ideal price 250$. If they launch the Wii U at 350$-400$ it will fail miserably. If they want the Wii U to be a success they need the Wii crowd on board, so Wii Sports U and New Super Mario Bros. Mii must be launch titles.



$200 worth of tech in the console - $100 worth of tech in a controller - sell it at cost.

..seems reasonable enough to me. i just can't envision nintendo taking a loss...they'll lower their profit margin and cut corners in their hardware until it is at least a wash at a reasonable launch price.



kitler53 said:
$200 worth of tech in the console - $100 worth of tech in a controller - sell it at cost.

..seems reasonable enough to me. i just can't envision nintendo taking a loss...they'll lower their profit margin and cut corners in their hardware until it is at least a wash at a reasonable launch price.

The controller is definitely the variable, but i could conceivably peg it at under $100 for production costs. We are talking about something functionally inert like the Wii remote, such that it will have little if any onboard processing power or memory. The very high capacity streaming technology is likely the worst factor, because even the touch screen is older tech (same touchscreens as the DS/3DS as opposed to what's used in virtually everything else)



Monster Hunter: pissing me off since 2010.

I'm pretty sure that the Wii-U will be priced at 300 dollars, they wouldnt price their next console near the price range of their portable.



    

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