tak13 said:
What...? Wrong, they don't do any price cut because they can't, since they would lose money due to the costly tablet controller and it's futile do it at this point... I'm fed up with that phrase ( No price drop because it will still sell horribily ) ! it's a wii u and Nintendo not dreamcast and Sega ( that's about first party games, I could mention another comparison with different console/company of today...) and if a price drop means 3-5m+ more sales in relation with the sales level of the wii u, of course you will do it! Check all over the internet, people are begging for a cheaper wii u and complaining justifiably about it being expensive/overpriced.... ( 199 $)
Wii u with a price drop could sell 18-19m + and by extent it would move more software, wii u games have an outstanding attach rate! That's horrible for you but it's a substantial improvement from what is going to sell eventually! So If Ninteno was able to do it, they would have done it, even if the effect wasn't spectacular... Don't forget Gamecube, one big price cut in 2002 and and another one in 2003... It sold 22m and 212m software ( 9.7 ratio ), perhaps without them it could sell half of it with the fierce PS2 competition, remember, that gen was when sega forced to abandon hardware buisness! Nintendo dropped considerably the price of gc two times, because they would still make enough profit, as it was extremely cheap to manufacture unlike dreamcast in that period and wii u now... |
With great attach ratio (over 10) a 100 dollars price cut would be totally recovered from the 600 made of 10 games (they would still net 200-300 additional profit per HW sold). The reason they don't do it is exactly GC, they already saw that there is little value in dropping the price of the HW.
Most people that say they would buy the HW if it was 300 are lying, and when properly accounted the HW bump wouldn't be worth it.

duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"
http://gamrconnect.vgchartz.com/post.php?id=8808363
Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"
http://gamrconnect.vgchartz.com/post.php?id=9008994
Azzanation: "PS5 wouldn't sold out at launch without scalpers."







