The Yen and Wii U Price

[Train wreck]

Mr Khan said:

Train wreck said:
The original wii had its price for 34 months before its first price cut and that was at a time where the Yen was weaker than it was now. Any move on price between now and the next 32 months will be perceived by the market as negative. I also believe that the loss the wii U is making at 80 yen still would not cover its losses even at the Yen's current 91.

True, but the point is Nintendo *could* do it without it being ruinous. And with the BOJ signalling their commitment to the LDP's 2% inflation goal, Nintendo could likely get still more wiggle room.

 

Don't think they have any wiggle room at all and that any move would be ruinous.  Nintendo noted that they did not want to make the same pricing mistake they did with the 3DS.  The Wii U is already cheap in Japan @ 31500/26250 (instead of common 34900/29900).  The PS3 is still 24980 and that console is seven years old, had multiple revisions and Im sure Sony is making very little on it.  So im sure any price below the PS3 would be a serious hit financial wise for Nintnedo (brand new console and all).

The West is the same story.  We know the wii U is not profitable now, the current mix is more premimus than standards.  Nintendo corrected Reggie's statement and indicated you need more than one game to be profitable.  Looking at the anatomy of a $60 game, the best sceneario would be $34 dollars from nintendo first party game, $7 dollars for 3rd parties and a little bit more for digital, multiply everything by at least two.  Im looking at least $75 (over three retail games with 2 being first party) dollars, after everyone takes their cut, for the wii U to be profitable and 3rd party sales have been lackluster.  Since you cannto buy another wiipad you cant make any money on accessories on that and there is no disclosure on its current peripherals.  I dont htink the yen drop will make up that kind of number.