Iwata Unsure if Nintendo Will Sell Wii U At a Loss

[archbrix]

NightDragon83 said:

RolStoppable said:
Just the consideration of this is a huge red flag. It shows a lack of confidence in their own product.

I laughed seeing how Sony erased pretty much all of their PS1 and PS2 profits to sell the PS3, but I would have never imagined that Nintendo would take a similar path.

Whoa whoa, hold on a sec... we're talking about a minimal loss of a few dollars per console, not hundreds like when the PS3 launched.

I expect Nintendo to shoot for the $299 price point for the Wii U, and if that means they lose a few bucks due to the exhange rates on each system, then it's something they'll have to do, rather than releasing the system at a higher price point where many consumers feel they're being gouged, as was the case with the 3DS's launch at $249.  If Nintendo sells the Wii at a price higher than $300, many consumers will balk at the idea of paying more than double the price of what the 360 / PS3 will be by then ($149/$199 entry level) for a system that (I'm assuming) is only marginally more powerful than both, and you'll end up with a situation similar to the 3DS's.

I completely agree, NightDragon.

While I have no solid info to cite, I would guess that buying the 3DS and a first-party Nintendo game likely puts them in the black again.  If they can achieve this method for Wii U at a $299 price point, they'll be just fine selling for a minimal loss for the first year or so.