Nintendo still selling Wii U at a loss

[Soundwave]

Max King of the Wild said:

Soundwave said:

I really, really, really, reaaaaaaaally doubt it costs more today to produce than when it launched.

DDR3 RAM, something that's likely the equivalent of a 450 GFLOP GPU, three cheap ass CPU cores, and a very low resolution touch panel with a $3 battery pack aren't components that are magically going to increase in cost.

There's nothing exotic or crazy in the Wii U design other than maybe the 32MB eDRAM.

Thats fine that you reaaaaaaaally doubt it. You are some random guy on the internet with no inside information and most likely no real life expeirience with a similar product/company. I don't have either of those also. However, what I do have is an economist wife who talks to me all the time about that garbage and 3 math classes that deal with supply and demand curves... all of which say if you produce less you make less... at a certain point if you produce more you make less. It's called law of diminishing returns and it is very real

Computer components like that drop in price it's just common sense. What Nintendo's using in the Wii U are dated components for one. They're not even using the more expensive 28nm fab process, they're using the more mature 40nm lines. For second, I doubt Nintendo is dumb enough to sign contracts based on a per shipment basis, where one or two slow quarters would handcuff their bottom line. This is a billion dollar company, not the corner mom and pops electronics get up. These deals with suppliers are done in advance for millions of orders that are anticipated over years.

A parts supplier is not going to piss Nintendo off because their initial shipment didn't go as well as they planned either.

Ask your wife about currency flucuations too, she should be able to englighten you with her 3 math classes since you seem baffled by the concept. There's a reason why every large Japanese exporter's stock is way up this year, it's because of the policies of the Abe government devaluing the yen.