The Wii U will be sold at a loss

[Play4Fun]

Chark said:

Play4Fun said:

maverick40 said:
Apparantly, the Wii U controller will retail at approx $150. This is not a good sign profit margin of the console itself. Although you never know with Nintendo.

http://kotaku.com/5942876/the-wii-us-controllers-are-really-expensive

Controllers are sold for really, really high profit margins at retail. Just because it may be sold for $150 at retail doesn't mean it adds $150 or even $100 to the console bundle.

Yes and no. There isn't a set in stone profit margin that controllers have. They have just been used as an effective means of obtaining profit. At $150 the price is substantially more than a typical controller. Considering that price might place it out of consumer interest profits might be maximized by lowering the profit margin to encourage sales (supply/demand). Though I suppose they don't anticipate sales to occur unless in the case of a replacement. With a $150 price tag it is looking as if the controller is significantly more expensive than a typical controller. Even maintaining the same profit per unit would indicate an almost $100 price on top of a typical controller.

I never said or implied that the gamepad doesn't cost more to produce than a typical controller nor did i say/imply that there is a set in stone profit margin for controllers.

I agree that $150 would put it out of consumer interest in America/europe which is why I think it's smart that Nintendo are not selling them seperately at retail outside of Japan until 2013.

My post was aimed at posters who seem to think it would add  $150/$100 to the console budget.