Cheebee said:
Obviously they'd want that, but I doubt they could afford to. 3DS was losing a modest amount of money, but with WiiU Nintendo ar making a significant loss on each unit sold. According to them, they'd need to sell 'more than one' game with every WiiU to break even. That means a loss between 50-100 Dollars, most likely. At the end of this year, that number might have gone down a bit, but there's no way they'll be close to breaking even, let alone make a profit. Would they then want to cut price even more, increasing their losses? I doubt it, especially since by then, WiiU will have a solid library, including some veritable system sellers, plus its competitors will be out, with far heftier pricetags, making WiiU look appealing and pretty cheap in comparison. |
Actually, analysis of the chipset in the WiiU suggests that the custom unit would probably come down rapidly in cost year over year. Let's assume a 20% savings from launch last year to Christmas 2013. Losses per system will probably be greatly reduced by then - it's one of the advantages of launching first. Sony used it well on both PS1&2, getting the costs down before competitors and reducing price. Then you look at the massive change in the yen vs Euro and US dollar. Launch assumed 80yen per US$, it's now pushing 100. That's a 25% gain in revenue per system sold in foreign markets. Combining those two factors, Nintendo could possibly slash the Wii U price by 25% ($75) and maintain even better margins than at launch, or better yet, cut the system by $50 and make a profit on each unit sold. The weak yen makes it much easier for Nintendo to slash prices than it was when the 3DS was in the same situation.
I think we can expect a price drop in the fall on Wii U to a $249-$299 range, or perhaps a dropping of the basic model (which probably had the worst margins) and new bundles. Nintendo can then also copy 3DS strategy by launching the now-ready Super Mario U and MarioKart U, and the WindWaker HD (SM3DL, MK7, OoT3D anyone?).
I wouldn't expect it to turn Wii U into the dominant presence that 3DS is, but I would expect a massive jump in sales and a product that is very appealing to a lot of customers when compared with what will likely be more expensive new systems from MS and Sony that also have somewhat limited libraries (Vita?).








