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Forums - Nintendo Discussion - Iwata Unsure if Nintendo Will Sell Wii U At a Loss

 

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They deserve this 15 12.40%
 
I hope they don't sell it at a loss... 23 19.01%
 
Total:121

I'm sure that, even if they sell at a loss, it will be a very small one and they'll be in the black pretty soon.



No troll is too much for me to handle. I rehabilitate trolls, I train people. I am the Troll Whisperer.

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well he said he doesn't know yet so lets wait until he knows whats going to happen. they don't want the 3DS situation to repeat itself but if they have enough strong games then they might not have to sell it at a loss



    R.I.P Mr Iwata :'(

This is kinda odd, i still expect Nintendo to sell the WiiU at $300 and profit off every sale -- if they opt to lose money then the company could be in for a few years of embarrassing losses with the strong yen, 3DS price point, WiiU price point and Wii/DS hardware and software sales fading away.



well its troubling for a company that took a $1 loss on every GC and made Billions on every Wii sold. yet even when they dropped the CB's price to $99, they still made a profit.

ninty will always make profit so i doubt theres truly anything to worry about but it makes me wonder about the launch price early adopters like most of you are and i am not will have to pay in the first 3 yrs!



Nintendo following Sony's lead only mean that their profit streak is surely going to be stopping many years to come.



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More important will be the price point.



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Nintendo has (in the past) sold systems at a loss at launch, but not a significant loss ... Essentially, with the average person buying a controller or two and a couple of games they were profitable on systems like the Gamecube.

While I'm going to sound like a broken record for repeating the same thing over and over again, I expect that Nintendo is unsure on whether they will lose money on the hardware because they are uncertain where the Yen's exchange rate will be compared to the Euro and US dollar; and (to a lesser extent other currencies). Realistically, based on current conditions, I don't think anyone could tell you what the value of the Yen will be 12 months from now beyond giving you a very broad range (60-80 yen per USD is likely, with 50-90 yen per USD a possibility).

If Nintendo has decided to release the Wii U at $299 based on a 75 Yen/USD exchange rate, they would probably take the loss to preserve this price point if the exchange rate drops as low as 65 Yen/USD, and they would potentially increase the price (while still taking a loss) to $349 if the exchange rate dropped below 60 Yen/USD. Being that no one can accurately predict where the exchange rate will be, Nintendo can't confirm whether they will take a loss or not.



RolStoppable said:
Just the consideration of this is a huge red flag. It shows a lack of confidence in their own product.

I laughed seeing how Sony erased pretty much all of their PS1 and PS2 profits to sell the PS3, but I would have never imagined that Nintendo would take a similar path.

Whoa whoa, hold on a sec... we're talking about a minimal loss of a few dollars per console, not hundreds like when the PS3 launched.

I expect Nintendo to shoot for the $299 price point for the Wii U, and if that means they lose a few bucks due to the exhange rates on each system, then it's something they'll have to do, rather than releasing the system at a higher price point where many consumers feel they're being gouged, as was the case with the 3DS's launch at $249.  If Nintendo sells the Wii at a price higher than $300, many consumers will balk at the idea of paying more than double the price of what the 360 / PS3 will be by then ($149/$199 entry level) for a system that (I'm assuming) is only marginally more powerful than both, and you'll end up with a situation similar to the 3DS's.



On 2/24/13, MB1025 said:
You know I was always wondering why no one ever used the dollar sign for $ony, but then I realized they have no money so it would be pointless.

Talk for your countries, I bought my wii back in 2006 for $500...

 

 Nintendo, just let me know how and I'll pay you $500 for my WiiU to offset the losses from some other systems...



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