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Forums - Nintendo Discussion - Is Nintendo crazy? Why is the X1 almost the same price as the Wii U this holiday?

Game_God on 27 November 2014
Ruler said:

they have to drop the gamepad imo if they ever want to have a chance. Nintendo gaming division has no giant electronics or software company backing them up its only nintendo so they cant sell their console below the production cost


1 thing that would make cars cheaper is if car makers would drop putting engines in them, then cars would be surely cheaper...



https://www.youtube.com/watch?v=n29CicBxZuw

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ICStats on 27 November 2014
spurgeonryan said:

329.99? 

Why wont Nintendo drop the price yet?

Maybe Nintendo don't like losing hundreds of millions of dollars, while MS prints money.

We should add, is Nintendo Crazy?  Why is PS4 almost the same price as the Wii U this holiday? (since Newegg is giving them at $329 now)



My 8th gen collection

WolfpackN64 on 27 November 2014
spurgeonryan said:

329.99? 

Why wont Nintendo drop the price yet?


In my country, the basic bundle with 2 games is 199.99 €, while the Xbox One is still 400 € with 1 games.



Game_God on 27 November 2014
NightDragon83 said:
Rab said:
profit > userbase

How can that be when larger userbase = more profit over the long run, and smaller userbase = smaller profit over long run?


There is nothing true in your sentence.

100 people buying X product at 10$ loss won't put more money in the bank than 1 person buying Y product for 10$ profit!



https://www.youtube.com/watch?v=n29CicBxZuw

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Cobretti2 on 27 November 2014
Game_God said:
NightDragon83 said:
Rab said:
profit > userbase

How can that be when larger userbase = more profit over the long run, and smaller userbase = smaller profit over long run?


There is nothing true in your sentence.

100 people buying X product at 10$ loss won't put more money in the bank than 1 person buying Y product for 10$ profit!

More consoles = more games sales = more profits from games



 

 

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Miyamotoo on 27 November 2014

Nintendo is aiming for fast big profit, and now they make probably good profit on each sold Wii U.
But I am 100% sure that next year will be a price cut.



ICStats on 27 November 2014
Cobretti2 said:
Game_God said:
NightDragon83 said:
Rab said:
profit > userbase

How can that be when larger userbase = more profit over the long run, and smaller userbase = smaller profit over long run?


There is nothing true in your sentence.

100 people buying X product at 10$ loss won't put more money in the bank than 1 person buying Y product for 10$ profit!

More consoles = more games sales = more profits from games

Yes, but the profits from additional games need to be high enough to offset the price cut.

Right now let's say Nintendo can sell 4 Million consoles a year at $299.  If they drop the price by $50, they've instantly forfeited $200 Million of revenue per year which they would have gotten without cutting the price.  Additional users would then have to make up for that.

Further if it means selling each additional console at a loss then it's an even deeper hole to dig out of.

So, to drop the price they better be sure they will sell a lot more consoles and those users will buy plenty of games.  If worst case they dropped $50 and that gave only a temporary boost it would be terrible.



My 8th gen collection

vivster on 27 November 2014

It's not about price. It's just that Wii U has much better value. According to some.



If you demand respect or gratitude for your volunteer work, you're doing volunteering wrong.

bubblegamer on 27 November 2014

Nintendo is not known for fast price drops. They like to keep their prices much longer compared to the other two.



Game_God on 27 November 2014
Cobretti2 said:
Game_God said:
NightDragon83 said:
Rab said:
profit > userbase

How can that be when larger userbase = more profit over the long run, and smaller userbase = smaller profit over long run?


There is nothing true in your sentence.

100 people buying X product at 10$ loss won't put more money in the bank than 1 person buying Y product for 10$ profit!

More consoles = more games sales = more profits from games

So let's sell X1 at 1$, shall we??? Sales skyrocket ensuing massive profits, right???

There are a quantity of variables, factors to take in account wich you happily swept of the picture like they are nothing... Thresholds, diminishing return, profits from games go tho said game publishers, not all games make profit etc. etc.

While your "More consoles = more games sales = more profits from games" formula isn't necessarly false it's not necessarily true either!

Futrhermore, user base is not dictated only by the price, look at Iphone, not the cheapest phone on the market, yet...

Rather than parting money with a price cut, better & a lot more marketing would do marvels IMO.



https://www.youtube.com/watch?v=n29CicBxZuw

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