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Forums - Nintendo Discussion - UPDATED:Do you think the Wii U will get a price cut this year?

 

How much do you think a $200-250 price will help Wii U?

Massive Boost over weeks 14 14.29%
 
Substantial Boost 29 29.59%
 
Moderate Boost 42 42.86%
 
Little or no effect 13 13.27%
 
Total:98
Dunban67 on 23 April 2015
sc94597 said:
Dunban67 said:

I agree that value is intrinsic to the consumer and not manufacturing cost (see the launch for the PS3)-    Even if an individual consumer is willing to pay more for a Wii U( IF they had to)  than an X box One-,  they would not do so becausae THEY WOULD NOT NEED TO- if a person who preferred a Wii U could either buy an X box One or a Wi U for $200 they would buy the X box one if for no other reason than to sell it for a profit and put it toward a Wii U  (granted if money was not an issue for the individual they may not go to the trouble for convinience reasons or the value of their own time-  but most people (that prefered a Wii U) would  take the $100-$200 profit they could get for the X box  and essentially get an even beter value on their Wii U

The consumer ultimatly sets the value and no mass product (if any product) is priced at the exact terminal value all current purhcasers are willing to pay at that time - that would be impossible to accomplish -    individually what we personally  value a product is not meaningful to anone else  with rare exception  (unless your dealing w a con artist )

Either way-  I now give you an A+ for effort due to your nice grapgh

The assumption made is that the market price is the same for the XBO and the Wii U. If both the Wii U and XBO had $200 market prices (decided by Microsoft/Nintendo) the original comment I quoted said that Nintendo should not assume that the Wii U will have an equivalent value (it is less valuable) and thus should drop its price. Nobody can sell an XBO for more than a Wii U in this situation unless there is a shortage of XBO's, because Microsoft themselves are selling it for $200. So if I were only willing to buy a Wii U and I had no interest in XBO (because, for example, I have a Gaming PC which plays XBO's best games) then it doesn't matter that the XBO is $200 and has better hardware, I want a Wii U for its unique games. Hence, the correct phrase to use to describe the original posters dillema is "greater quantity demanded" not "more valuable." At $300 the XBO might have more people who choose to value it at said price so that the demand is greater than the Wii U's. At $200 the Wii U might have more people who value it at said price and are willing to purchase it than XBO. Thus, the XBO is not more valuable, nor is the Wii U (unless you contextualize it by a demographic), it has more total quantity demanded. 

Value is price and time dependent, and based on the perception and preferences of the consumer(s) the product targets. 

edit: My point is that lower prices can bring  in consumers who weren't evaluating any consoles at the higher prices. And higher prices can remove consumers who were evaluating at the lower prices. 


you misunderstand-  I said if you/most anyone had the OPPORTUNITTY to buy both at $200 consdering their actual mrket price/market value today-  hence why i said you  would sell the Xbox (if you prefered the Wii U )  and make a profit-  If they were both being sold at retial for $200, obviously you could ot sell either for a profit

no mater how you want to ty to say otherwise, the value of the Xbox One is greater thean the value of the Wii U-  that includes the the context of the  definions you provided as well-  you are trying to distort your own information-   If you decided to go buy 100 ounces of gold tomorrow and you paid $100 more per once than the "ask" price, it would simply mean you were overpaying- it would not set the value of gold or even be an indicator 



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Dunban67 on 23 April 2015
Stefan.De.Machtige said:

I would say no. Nintendo accepted Wii U's fate a long time ago. Why lose money over 1/1,5 million more LTD sales?

I ponder if the Wii U will ever get a real price cut and not some bundling combination.


I think you may be right and it seems like they accepted this very early in the Wii U  s lifetime-  probably w in the 1st 18 months-  As someone who bought a Wii U at launch, it is frustrating to see -  The Wii U could have been so much more than it has become so far but they seemed to just give up and not follow thru very early 



Dunban67 on 23 April 2015
Materia-Blade said:
Stefan.De.Machtige said:

I would say no. Nintendo accepted Wii U's fate a long time ago. Why lose money over 1/1,5 million more LTD sales?

I ponder if the Wii U will ever get a real price cut and not some bundling combination.

Your math is quite wrong if that's what you think. Wii U will get a price cut eventually, nintendo won't lose money and it will mean far more than 1.5m ltd sales.


Barring a HUGE and unexpected surge in hardware and software sales the Wii U will continue to lose money 



Dunban67 on 23 April 2015
Materia-Blade said:
Stefan.De.Machtige said:

I would say no. Nintendo accepted Wii U's fate a long time ago. Why lose money over 1/1,5 million more LTD sales?

I ponder if the Wii U will ever get a real price cut and not some bundling combination.

Your math is quite wrong if that's what you think. Wii U will get a price cut eventually, nintendo won't lose money and it will mean far more than 1.5m ltd sales.

double post



sc94597 on 23 April 2015
Dunban67 said:
sc94597 said:

The assumption made is that the market price is the same for the XBO and the Wii U. If both the Wii U and XBO had $200 market prices (decided by Microsoft/Nintendo) the original comment I quoted said that Nintendo should not assume that the Wii U will have an equivalent value (it is less valuable) and thus should drop its price. Nobody can sell an XBO for more than a Wii U in this situation unless there is a shortage of XBO's, because Microsoft themselves are selling it for $200. So if I were only willing to buy a Wii U and I had no interest in XBO (because, for example, I have a Gaming PC which plays XBO's best games) then it doesn't matter that the XBO is $200 and has better hardware, I want a Wii U for its unique games. Hence, the correct phrase to use to describe the original posters dillema is "greater quantity demanded" not "more valuable." At $300 the XBO might have more people who choose to value it at said price so that the demand is greater than the Wii U's. At $200 the Wii U might have more people who value it at said price and are willing to purchase it than XBO. Thus, the XBO is not more valuable, nor is the Wii U (unless you contextualize it by a demographic), it has more total quantity demanded. 

Value is price and time dependent, and based on the perception and preferences of the consumer(s) the product targets. 

edit: My point is that lower prices can bring  in consumers who weren't evaluating any consoles at the higher prices. And higher prices can remove consumers who were evaluating at the lower prices. 


you misunderstand-  I said if you/most anyone had the OPPORTUNITTY to buy both at $200 consdering their actual mrket price/market value today-  hence why i said you  would sell the Xbox (if you prefered the Wii U )  and make a profit-  If they were both being sold at retial for $200, obviously you could ot sell either for a profit

no mater how you want to ty to say otherwise, the value of the Xbox One is greater thean the value of the Wii U-  that includes the the context of the  definions you provided as well-  you are trying to distort your own information-   If you decided to go buy 100 ounces of gold tomorrow and you paid $100 more per once than the "ask" price, it would simply mean you were overpaying- it would not set the value of gold or even be an indicator 

Again economic value =/= market price. Market price is the minimum at which people can buy a good (in your scenario the market price of the XBO is $200.) Economic value is the maximum at which a person/group of people will buy a good. Economic value is different for different people. There is an average economic value, which you are alluding to, but that can only be determined through an open-market auction and it is very much price AND time dependent. 

YOU MUST provide context when you say "more valuable."

In your scenario I value an XBO at $200 or anything less than $350 - (the perceived cost of sale.) That is the most I will pay for it. On the otherhand my willingness to pay for the Wii U can exceed this value, and therefore I value the Wii U more than the XBO, even if I choose the XBO to fund my purchase of the Wii U. An alternative scenario is if you have $350 and you want an XBO (the market price of the XBO is $350.) You find a Wii U for $200 and sell it for $300 to help fund your XBO and also gain some extra money. In the end you make $100 on top of your $350 and buy your XBO + a game. Just because you chose to buy a Wii U before buying an XBO does not mean you value the Wii U more than the XBO. You valued the XBO AT LEAST at $350 and the Wii U at most at $300 ($200 you paid + $100 profit you make from it.) 



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Materia-Blade on 23 April 2015
Dunban67 said:
Materia-Blade said:

Your math is quite wrong if that's what you think. Wii U will get a price cut eventually, nintendo won't lose money and it will mean far more than 1.5m ltd sales.


Barring a HUGE and unexpected surge in hardware and software sales the Wii U will continue to lose money 

Wii U isn't loosing any money. if it was, a surge in sales would make it loose more money.



Dunban67 on 23 April 2015
sc94597 said:
Dunban67 said:


you misunderstand-  I said if you/most anyone had the OPPORTUNITTY to buy both at $200 consdering their actual mrket price/market value today-  hence why i said you  would sell the Xbox (if you prefered the Wii U )  and make a profit-  If they were both being sold at retial for $200, obviously you could ot sell either for a profit

no mater how you want to ty to say otherwise, the value of the Xbox One is greater thean the value of the Wii U-  that includes the the context of the  definions you provided as well-  you are trying to distort your own information-   If you decided to go buy 100 ounces of gold tomorrow and you paid $100 more per once than the "ask" price, it would simply mean you were overpaying- it would not set the value of gold or even be an indicator 

Again market value =/= market price. Market price is the minimum at which people can buy a good (in your scenario the market price of the XBO is $200.) Market value is the maximum at which a person/group of people will buy a good. Market value is different for different people. There is an average market value, which you are alluding to, but that can only be determined through an open-market auction and it is very much price AND time dependent. 

YOU MUST provide context when you say "more valuable."

In your scenario I value an XBO at $200 or anything less than $350 - (the perceived cost of sale.) That is the most I will pay for it. On the otherhand my willingness to pay for the Wii U can exceed this value, and therefore I value the Wii U more than the XBO, even if I choose the XBO to fund my purchase of the Wii U. An alternative scenario is if you have $350 and you want an XBO (the market price of the XBO is $350.) You find a Wii U for $200 and sell it for $300 to help fund your XBO and also gain some extra money. In the end you make $100 on top of your $350 and buy your XBO + a game. Just because you chose to buy a Wii U before buying an XBO does not mean you value the Wii U more than the XBO. You valued the XBO AT LEAST at $350 and the Wii U at most at $300 ($200 you paid + $100 profit you make from it.) 

What YOU (or I) value a product at means nothing to anyone -  Virtually no one will knowingly/willingly pay more than the market price of a readily available  product -  Your willingness to pay more for a Wii U than an Xbox One is a definition of nothing but your preference- it has nothing to do with value unless a critical mass within a market felt the same way-  which is not the case



Dunban67 on 23 April 2015
Materia-Blade said:
Dunban67 said:


Barring a HUGE and unexpected surge in hardware and software sales the Wii U will continue to lose money 

Wii U isn't loosing any money. if it was, a surge in sales would make it loose more money.


a huge surge in Wii u sales would help get cost down and software sales up giving Nintendo an opportunitty to make money on the wii u=  but it would have to be many millions in sales above what they have been tracking

You say the Wii U is not losing money-  please provide anything from Nintendo that indicates that-  I don t believe you will find it 



sc94597 on 23 April 2015
Dunban67 said:
sc94597 said:

Again market value =/= market price. Market price is the minimum at which people can buy a good (in your scenario the market price of the XBO is $200.) Market value is the maximum at which a person/group of people will buy a good. Market value is different for different people. There is an average market value, which you are alluding to, but that can only be determined through an open-market auction and it is very much price AND time dependent. 

YOU MUST provide context when you say "more valuable."

In your scenario I value an XBO at $200 or anything less than $350 - (the perceived cost of sale.) That is the most I will pay for it. On the otherhand my willingness to pay for the Wii U can exceed this value, and therefore I value the Wii U more than the XBO, even if I choose the XBO to fund my purchase of the Wii U. An alternative scenario is if you have $350 and you want an XBO (the market price of the XBO is $350.) You find a Wii U for $200 and sell it for $300 to help fund your XBO and also gain some extra money. In the end you make $100 on top of your $350 and buy your XBO + a game. Just because you chose to buy a Wii U before buying an XBO does not mean you value the Wii U more than the XBO. You valued the XBO AT LEAST at $350 and the Wii U at most at $300 ($200 you paid + $100 profit you make from it.) 

What YOU (or I) value a product at means nothing to anyone -  Virtually no one will knowingly/willingly pay more than the market price of a readily available  product -  Your willingness to pay more for a Wii U than an Xbox One is a definition of nothing but your preference- it has nothing to do with value unless a critical mass within a market felt the same way-  which is not the case

I noticed that you didn't address my scenario. In that scenario does the Wii U have more value than the XBO because any person will buy it before an XBO?

Value is exactly prefence. Just because the marginal value of the XBO is greater in your scenario does not mean its total value is greater. 

And yes, people do pay more or less than market price in many real-world situations. 

"In economics, market price is the economic price for which a good or service is offered in the marketplace. It is of interest mainly in the study of microeconomics. Market value and market price are equal only under conditions of market efficiency, equilibrium, and rational expectations."

^ Is not always true. 

http://www.parjustlisted.com/what%E2%80%99s-the-difference-between-price-and-value/

The debate over “prices” and “values” is a very old and famous one in economics, perhaps 250 years in the making. In the short run, it is quite possible to find prices higher or lower than values due to unusual events or rapid changes in market conditions. In the long run, price equals value due to market forces.

We make decisions in the short run. Therefore, it is possible that prices will exceed values (this is typically called “over-valuation”) or prices may be less than values (this is called “under-valuation”). If there were no differences between value and price, under- and over-valuation would have no meaning.

Researchers and analysts study markets in attempting to identify situations where there is over- or under-valuations. We can observe prices (as reported by MLS offices from actual transactions) but we cannot observe values. The latter must be estimated in careful studies by statistical analysis.

 



binary solo on 23 April 2015

I think a price cut is almost guaranteed. More or less the only way I see it not happening is if Nintendo has largely given up on Wii U and they are focusing on getting a new home console generation up and running, in which case they will go for selling each Wii U at a profit rather than try to get better growth in install base.



“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell

"When the power of love overcomes the love of power, the world will know peace."

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