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Forums - Gaming Discussion - How is it possible that the X1 and PS4 are already basically the same price as a Wii U?

darkknightkryta on 28 November 2015

Choosing parts that are as low as they're going to get to build a new system out of was a mistake. There isn't much room to get costs down.



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Platina on 28 November 2015

Yes, it's the gamepad that is driving up the price... Japan is selling a standalone gamepad for around $100 USD so..



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[3DS] Winter Playtimes [Wii U]

Danman27 on 28 November 2015
JRPGfan said:
Danman27 said:
Sell a wiiU model with the pro controller.

This is what I would have done if I was nintendo.

Made a new system with just the pro controller, and have it be 50$ or more cheaper than the normal wii u console.

(a pro controller only wii u, could sell at 199$)


If I could get the wiiU for 150 with SSB, I would. 



Eddie_Raja on 29 November 2015

Two things:

1) Economy of scale: With how few Wii U's are selling they aren't getting the most efficient pricing.

2) The stupid tablet: It drives up the price $50-$80



Prediction for console Lifetime sales:

Wii:100-120 million, PS3:80-110 million, 360:70-100 million

[Prediction Made 11/5/2009]

3DS: 65m, PSV: 22m, Wii U: 18-22m, PS4: 80-120m, X1: 35-55m

I gauruntee the PS5 comes out after only 5-6 years after the launch of the PS4.

[Prediction Made 6/18/2014]

DivinePaladin on 29 November 2015

Do you wanna sell ten consoles a year at $300 or elevem a year at $200? At this point the sales aren't gonna make up for the price cut - remember that during the GC years they couldn't give the damn thing away, at one point it was $50 and still selling like garbage.

Plus, I do believe there was an issue where one of their chips was exclusively made by one contractor that got bought out (believe it or not I think I vaguely recall Sony being the one buying them out, don't hold me to that though); I think they ended up turning that into a profitable situation but at first it was a pretty big problem.

Lastly, they only relatively recently sold through their original model of Wii U, which cost more to manufacture than the slightly updated model. Those weren't profitable at sub-$300, but apparently these are.



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baloofarsan on 29 November 2015
SpokenTruth said:
baloofarsan said:
SpokenTruth said:


BoM's in early 2012 suggested a $50 Wii U Gamepad cost. No way it's still $50 today (much less $70.  Where the hell did you find this number?) unless they signed price locked deals with all their vendors and nobody does that anymore.

The gamepad is now on sale in Japan for ¥13,824 while the Pro Controller is ~ ¥4,000. That should make the console with a Pro Controller instead of a Gamepad approximately ¥10,000 cheaper (~$80)

MSRP =/ BoM.

 

I know! What the production cost is will probably never be revealed.

With the resale price you get the factors for shipping, storage, packaging and more that also influence the price that the costumer has to pay.

With the game preinstalled it would be possible to make the WiiU box almost half as big (if the gamepad is substituted with the Pro controller).



Conina on 29 November 2015
SpokenTruth said:
Eddie_Raja said:
Two things:

1) Economy of scale: With how few Wii U's are selling they aren't getting the most efficient pricing.

2) The stupid tablet: It drives up the price $50-$80

In early 2012 it did.  It doesn't cost that today.

We have no proof for that. Or do you have the 2015 BoM for the tablet controller?



Aquietguy on 29 November 2015
Eddie_Raja said:
Two things:

1) Economy of scale: With how few Wii U's are selling they aren't getting the most efficient pricing.

2) The stupid tablet: It drives up the price $50-$80


How is it stupid? I doubt it still cost that much. The best estimates three years ago was $50. 



DonFerrari on 29 November 2015
Platina said:
Yes, it's the gamepad that is driving up the price... Japan is selling a standalone gamepad for around $100 USD so..


Well margin for peripherals can be over 50%, so the gamepad could cost less than 50. So there is no good reason for the package be over 200.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

DonFerrari on 29 November 2015
DivinePaladin said:
Do you wanna sell ten consoles a year at $300 or elevem a year at $200? At this point the sales aren't gonna make up for the price cut - remember that during the GC years they couldn't give the damn thing away, at one point it was $50 and still selling like garbage.

Plus, I do believe there was an issue where one of their chips was exclusively made by one contractor that got bought out (believe it or not I think I vaguely recall Sony being the one buying them out, don't hold me to that though); I think they ended up turning that into a profitable situation but at first it was a pretty big problem.

Lastly, they only relatively recently sold through their original model of Wii U, which cost more to manufacture than the slightly updated model. Those weren't profitable at sub-$300, but apparently these are.


Yes Sony bought the factory, but that didn't made the price of the part rise since Nintendo probably had a contract already.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."