Probably because Nintendo is in the business of video games and Microsoft just sees it as a fun thing to do and doesn't need to turn a profit on it.
NightDragon83 said:
How can that be when larger userbase = more profit over the long run, and smaller userbase = smaller profit over long run? |
larger userbase does not always equal more profit, you have to take cost into the equation, if I have to the explain that then I think your stuck with your paradigm
chakkra said:
This. This is a business administration principle so basic (and we've seen countless of companies applying it over the years) that I'm still scratching my head as to why is Nintendo behaving like this. Maybe they lost faith in its product and think that, even at $250, is not going to sell well. |
Funny to say that about a company that has consistently made the most profit over the generations
Microsoft with it's "grow the userbase" at all costs philosophy on the other hand has accrude massive losses
Sony has also made far less profit than Nintendo
You may need to question your assumptions about how business actually make a profit
| Lyrikalstylez said: The wii u should be $150 |
Too much money loss.
$250 would have been nice drop tho.
_crazy_man_ said:
Too much money loss. $250 would have been nice drop tho. |
How? The parts shouldn't be too expensive now a days
Nintendo's crazy because of that? If thats the case, they've been crazy for a while now. There are some $250 Wii U deals around if you know where to look. If I recall, Wii was $249.99 when it launched, while the cheapest Xbox 360 was only $50 more expensive, and that's with the huge difference in power. Hell, the cheapest 360 got down to $199.99 in 2008, while Wii was still $250. Why is this a problem? This has happened before with Wii, so was Nintendo also crazy then?
| forethought14 said: Nintendo's crazy because of that? If thats the case, they've been crazy for a while now. There are some $250 Wii U deals around if you know where to look. If I recall, Wii was $249.99 when it launched, while the cheapest Xbox 360 was only $50 more expensive, and that's with the huge difference in power. Hell, the cheapest 360 got down to $199.99 in 2008, while Wii was still $250. Why is this a problem? This has happened before with Wii, so was Nintendo also crazy then? |
God I remember that, Nintendo sure loves making money off of people don't they!
| Lyrikalstylez said:
How? The parts shouldn't be too expensive now a days |
A few months ago they said they were just starting to make a profit off it.
I doubt its dropped ~$100 in production costs like you are suggesting. If anything the GamePad is what is driving up costs.
GTAexpert said:
How can Nintendo restore the brand by selling less units of Wii U? You pointed out an even bigger reason for Nintendo to drop the price of Wii U, it would help restore the brand. If its price drops by $50 I would import it. |
its all about the games. nintendo has to win back the core after losing them with the wii. selling 100m to casuals isnt needed for restoring the brand.
Gamecube was sold at 99€ and did not recover that well.
The price drop is still a weapon in Nintendo's hand, , but the main focus is now making profits, selling Wii U produced and selling games to make a profit.
This holiday, Nintendo will do better than last year and the Wii U has a good chance to beat its forecast. Selling more consoles (but still not enough) and not doing a profit isn't better than selling a little less and making a profit.
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