By using this site, you agree to our Privacy Policy and our Terms of Use. Close
Einsam_Delphin said:
Cold-Flipper said:

Einsam_Delphin said:

Aha, so you see, it's all about them long-term software sales, as why else would they ever sell their systems at a loss if even for a short period of time. I don't see the risk in a $100 drop coinciding with key releases, as the same tactic worked out for the 3DS. Besides, they're gonna drop the price to that point and beyond sooner or later anyhow.

 

I forgot why we're debating over which console Nintendo is focusing on, but ahwells lol. All these games we're seeing now weren't made this year, but have been in development for years. They likely decided to shift game development in the 3DS's favor after it's slow start, but that's just speculation on my part. I do expect the Wii U to be getting development focus right now though, and so we could expect a 3DS-like game rush in 2015.

Long-Term thinking is fine and all but not if that means taking a big loss on systems. As for the bolded: Yes, but once they can actually break even with it or take a slight loss. You can't take a big loss from a business perspective. 

I'd expect a big Wii U game-push in 2014. It normally happens during the 2nd full year for every system. 2013 was 3DS's 2nd full year and Wii's was in 2008. 

The following post was spot on so read it again!

I'd think it'd always be worth it to take a loss if it means you make much more later than you lost initially, unless the loss now would cause you to go bankrupt, but that's not likely the case here. Since Nintendo isn't just going to vanish within a year, long-term is uber important, especially with how long this generation could last going by the previous one. Of course I'm no business major so perhaps there's more to it than that. What I do know for sure though, is that we don't even know how big a loss overall they'd be taking, if any. Let's just say that decide to $100 price cut around MK8's release. Let's also assume that by that time, Wii U is paying for itself. So with a $100 drop, I'd think it take 2 or 3 Wii U game sales to make a console profitable. Now with MK8, SM3DW, SLW, Wii Fit U, Pikmin 3, DKCTP, and many others having released already at this point, and oncoming titles like SSB4, Yoshi Yarn, SMT x FE, etc., plus the $100 drop increasing overall game sales, I think it's safe to say a favorable game to console ratio can be reached. Then of course there's the 3DS which should really be rocking by this point. So yeah they'll still be selling Wii U's at a loss, but overall I think they'd still be profitable.

 

I already responded to his post, which is really just a uber long n elaborate version of "Nintendo would be selling Wii U's at a loss," a point I've already made note of. I mean, I understood that fact before I even made this thread, as I thought that's just how price drops usually work. I just think that given the Wii U's current situation, the reasons for a price drop outweigh this one reason against it, which I really don't think is as big a deal as it's being made out to be due to their other means of profit.

A $100 cut is feasible next year when Mario Kart release but I think he is arguing they wont do it this year, they have a strong line up and with holiday deals/bundles there is no point. I think the price cut will look like this

Basic-$199, possibly discontinued soon after

Deluxe Mario Kart 8 Bundle-$299



When the herd loses its way, the shepard must kill the bull that leads them astray.