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

Roma on 15 December 2011
NolSinkler said:
I don't know what any of you are thinking. People are talking on here about a $600 price-tag, Nintendo selling a console for a loss. Tell me, when has Nintendo ever sold a console at a loss? When has Nintendo ever launched a product for more than $250? Granted, there has been inflation since the Wii launched. Granted, the value of the Yen has risen vs. the US Dollar. Let's be honest though; the Wii U will be manufactured in China. Inflation over the past five years in US Dollars has averaged somewhere near three percent per year. With inflation continuing at this pace by the end of next year (when Nintendo will likely release the console) inflation will have accumulated to about 19.4 percent. If Nintendo wants to launch a console that costs the same as the Wii did in real terms, then it will launch it at $300. Suppose that the Wii U costs slightly more than the Wii did though because of its more advanced technology? Perhaps Nintendo would go as high as $350. And still make a profit.

I know that I don't have as high of a post-count as some of you, but let me tell you whipper-snappers something. I've been paying attention to these trends for many years. I come to this site daily and have been doing so for far too long. Nintendo will not launch this console for more than $400 in the U.S. And I have serious doubts that it will cost more than $350. As for it launching next year...I know what Nintendo said, but let's just wait and see.

I used to think they never lost money on any console at launch but was corrected and told that GC was sold 20$ loss.

The 600$ price is not even a rumor it’s just a bunch of retailers putting a placeholder price just like any other console before it. People just forget the past and jump to conclusions :P





    R.I.P Mr Iwata :'(

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Roma on 20 December 2011
spurgeonryan said:
Roma said:
NolSinkler said:
I don't know what any of you are thinking. People are talking on here about a $600 price-tag, Nintendo selling a console for a loss. Tell me, when has Nintendo ever sold a console at a loss? When has Nintendo ever launched a product for more than $250? Granted, there has been inflation since the Wii launched. Granted, the value of the Yen has risen vs. the US Dollar. Let's be honest though; the Wii U will be manufactured in China. Inflation over the past five years in US Dollars has averaged somewhere near three percent per year. With inflation continuing at this pace by the end of next year (when Nintendo will likely release the console) inflation will have accumulated to about 19.4 percent. If Nintendo wants to launch a console that costs the same as the Wii did in real terms, then it will launch it at $300. Suppose that the Wii U costs slightly more than the Wii did though because of its more advanced technology? Perhaps Nintendo would go as high as $350. And still make a profit.

I know that I don't have as high of a post-count as some of you, but let me tell you whipper-snappers something. I've been paying attention to these trends for many years. I come to this site daily and have been doing so for far too long. Nintendo will not launch this console for more than $400 in the U.S. And I have serious doubts that it will cost more than $350. As for it launching next year...I know what Nintendo said, but let's just wait and see.

I used to think they never lost money on any console at launch but was corrected and told that GC was sold 20$ loss.

The 600$ price is not even a rumor it’s just a bunch of retailers putting a placeholder price just like any other console before it. People just forget the past and jump to conclusions :P




So what are you saying? Retailers are just putting in that number collectively just so that there will be a price in the system for it? Why not something cheaper to garner interest? Or was I way off?

If the price they set is lower than the actual Nintendo price they will lose on it because they will have to sell it for the lower price. If you look at Amazon for example, if you pre-order a product and that product gets a higher price when it is available you still get the low price you ordered it for.

That’s why retailers set a high price and then lower it when the product releases





    R.I.P Mr Iwata :'(

NintendoPie on 20 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. 

 They must put the controller with Wii U. Just like you said it will be essential for the launch games, that's what Nintendo was focusedaround at E3, so why wouldn't they include it?



NintendoPie on 20 December 2011
spurgeonryan said:
Roma said:
NolSinkler said:
I don't know what any of you are thinking. People are talking on here about a $600 price-tag, Nintendo selling a console for a loss. Tell me, when has Nintendo ever sold a console at a loss? When has Nintendo ever launched a product for more than $250? Granted, there has been inflation since the Wii launched. Granted, the value of the Yen has risen vs. the US Dollar. Let's be honest though; the Wii U will be manufactured in China. Inflation over the past five years in US Dollars has averaged somewhere near three percent per year. With inflation continuing at this pace by the end of next year (when Nintendo will likely release the console) inflation will have accumulated to about 19.4 percent. If Nintendo wants to launch a console that costs the same as the Wii did in real terms, then it will launch it at $300. Suppose that the Wii U costs slightly more than the Wii did though because of its more advanced technology? Perhaps Nintendo would go as high as $350. And still make a profit.

I know that I don't have as high of a post-count as some of you, but let me tell you whipper-snappers something. I've been paying attention to these trends for many years. I come to this site daily and have been doing so for far too long. Nintendo will not launch this console for more than $400 in the U.S. And I have serious doubts that it will cost more than $350. As for it launching next year...I know what Nintendo said, but let's just wait and see.

I used to think they never lost money on any console at launch but was corrected and told that GC was sold 20$ loss.

The 600$ price is not even a rumor it’s just a bunch of retailers putting a placeholder price just like any other console before it. People just forget the past and jump to conclusions :P




So what are you saying? Retailers are just putting in that number collectively just so that there will be a price in the system for it? Why not something cheaper to garner interest? Or was I way off?


 That's what I was always thinking too. Why would they make the price more than it has to be?



NintendoPie on 20 December 2011

Overall I don't think Nintendo will sell it more than 350$ my prediction is 299$ to 349$ no more I would think.



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NintendoPie on 20 December 2011
spurgeonryan said:
NintendoPie said:
Overall I don't think Nintendo will sell it more than 350$ my prediction is 299$ to 349$ no more I would think.


Is that including a Tablet controller and possibly a starter game?

 

Either way we will learn more at CES! Nintendo confirmed it will be there!!! I just hope they don't dissapoint this time around.


 Yes, with the controller but not a game.



Solid-Stark on 21 December 2011

It depends at what price they launch. Imo, it will launch at $299 and they will break even.



e=mc^2

Gaming on: PS4 Pro, Switch, SNES Mini, Wii U, PC (i5-7400, GTX 1060)

Squilliam on 21 December 2011

Q. What is the Wii U equivalent to?

A. A clean sheet redesign of the Xbox 360 slim with Kinect with modern technology at similar costs.

Q. Does Microsoft make money on it?

A. Yes.

Q. How much does it sell for?

A. $299-$399



Tease.

bobgamez on 21 December 2011

I would really hope they have multiple controllers, it would be incredibly dumb of them not to. I don't even see how its hard to do. I mean you dont have to stream the games directly for every single game.



bobgamez on 23 December 2011

Well I think it will do just fine. The 360 is selling at 200 bucks right and making a profit off of each one. And by next 150. I think the wii u can release at a nice 299-350 price range while making a profit off it.