Forums - Nintendo Discussion - The Wii U will be sold at a loss

badgenome said:
DanneSandin said:

Haven't you heard? It's gonna get bundled with Vita - to save those diminishing sales ;)

That's stupid. Nothing can save the Vita.

Yeah, you're right :( my bad :(



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That's unexpected!

But since they don't mention if they lose money on both models, how much do they will lose and where, it's hard to say how bad it is or not. For example they may sell the basic model at a loss but the Pro at a profit. And the basic may be sold at a profit in Japan but losing money on USA, or Europe or both.

Too many unknows to say how bad their situation is. After all, they still plan to make money, and with 2 quarters incurring in losses, they have to make some money with WiiU to make that goal.

Although it's surprising. Many of us believed that at 300/350 € was a bit too expensive. And it turns out is not even high enough!



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150 $ controller retail price doesn't mean it costs this amount of money to produce it. do you really think the produce cost for a ps3 controller is 60 $ or the one for the vita's 32gb memory card 100 $ ?



But we must first concentrate ourselves on the way to entertain people, for video games to live. Else, it's a world where sales representative will win, which has as effect to kill creativity. I want to say to the creators all around the world:"Courage, Dare!". Shigeru Miyamoto.

Wasn`t the GC sold at a loss for some time too?
Still, the loss was a real possibility when Nintendo stated they were looking to avoid the mistakes they made with 3DS. Personally, i didn`t think they would go along with it, but the gamepad must have taken it`s toll on the whole price - hence selling at a loss.
I think that Wii U will sell not only in healthy numbers, but software will also sell really well. Unlike the 3DS where things are looking bad.

Overall, i firmly believe this will be a temporary thing and it won`t hav that much of an impact on Nintendo`s finances.



Honestly, I don't think that the Wii U is selling at a loss. It's most likely a translation error because the report does not state that it is selling at a loss. It says Q2 was negatively impacted by the production costs of the Wii U, which resulted in a loss for this quarter.



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So with the recent losses Nintendo posted and over 5 million Wii U's anticipated to be sold this year, it looks like Nintendo won't be yielding profits this year. Launch hardware doesn't sell enough software to turn around profits right away, that won't kick in till next year when those delayed games start hitting the shelves or maybe not until the summer games drought passes. A new console will line Nintendo up for profits next year, but with the 3DS and now the Wii U, this year seems set.

So far its a 335 million loss (Q1 + Q2). With Wii U looking to cut into their holiday gains and into early next year as I doubt the Wii U's production costs will go down by then. That is quite the hurdle to jump. At least they have the new hardware to turn around next year.



Before the PS3 everyone was nice to me :(

maverick40 said:
Apparantly, the Wii U controller will retail at approx $150. This is not a good sign profit margin of the console itself. Although you never know with Nintendo.

http://kotaku.com/5942876/the-wii-us-controllers-are-really-expensive


Controllers are sold for really, really high profit margins at retail. Just because it may be sold for $150 at retail doesn't mean it adds $150 or even $100 to the console bundle.



Train wreck said:
Galaki said:
DanneSandin said:
Damn! That's a first for Nintendo!!! Just another evidence that PS4 won't be much stronger than WiiU

People believe Sony can make a console at least 3x stronger than the WiiU at the same price.

I believe them.

Im guessing Sony plans to release a 150 dollar controller?  The majority of Wii U cost is tied up in that.

^^^

 

Same goes to you.



DanneSandin said:
Damn! That's a first for Nintendo!!! Just another evidence that PS4 won't be much stronger than WiiU


I wonder if they're making a loss on the $349 model as well?

As far we know sony's system doesn't come with a 50$ control. Assuming Nintendo are only making a small loss and Sony are aiming for a $399 system and they're willing to make a loss of up to $100 (as opposed to $300 loss from ps3). That gives them an additional $99 to spend on CPU/GPU compared to Nintendo and maybe $30-40 on a large harddrive. Then the question is; what kind of leap would A $100 difference make? But one must remember the ps4 isn't launching for at least another 12months, so GPU/CPU graphical efficiency and prices would presembaly be a fair bit better by late 2013.  

 



Play4Fun said:
maverick40 said:
Apparantly, the Wii U controller will retail at approx $150. This is not a good sign profit margin of the console itself. Although you never know with Nintendo.

http://kotaku.com/5942876/the-wii-us-controllers-are-really-expensive


Controllers are sold for really, really high profit margins at retail. Just because it may be sold for $150 at retail doesn't mean it adds $150 or even $100 to the console bundle.

Yes and no. There isn't a set in stone profit margin that controllers have. They have just been used as an effective means of obtaining profit. At $150 the price is substantially more than a typical controller. Considering that price might place it out of consumer interest profits might be maximized by lowering the profit margin to encourage sales (supply/demand). Though I suppose they don't anticipate sales to occur unless in the case of a replacement. With a $150 price tag it is looking as if the controller is significantly more expensive than a typical controller. Even maintaining the same profit per unit would indicate an almost $100 price on top of a typical controller.



Before the PS3 everyone was nice to me :(