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ManUtdFan said:
Mummelmann said:
Barozi said:
Nintendo won't and can't slash the price by $50 let alone $100 this early.


Precisely, its basic maths. The Wii U is already selling at a loss, if Nintendo cut the price by a full 100$ they would likely sell at a loss far into 2014 (probably the whole year, the Gamepad is rather costly to produce even if the other hardware components drop drastically in price) and that would spell true disaster, by that time the 3DS won't be pulling in enough cash to cover the losses and since Nintendo live solely off of gaming, they can't afford to let cash trickle out of the company, as opposed to MS, for instance.

How do you know for sure it's selling at a loss? I thought Nintendo always made profit on every machine sold. 

This is pretty much common information for most people in here, Nintendo themselves have stated that they are dependent on selling one piece of software with every unit to be profitable overall. Hardware sold at a small loss (how small is hard to say but a 100$ price cut would make a 20$ loss truly massive at 120$, or about 50% of the retail price).

Cutting the price so soon would be a two-fold disaster; it would net them a large loss on hardware sales, one not offset by selling merely one software unit along with the machine and it would also send signals to the public, the investors and the competition that they are weakened and on the defensive and have completely misread the market.