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

Mmm... bad news for me. I guess this means it won't have a soon pricecut.



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I'd imagine that the pad costs at most $80 or so. The thing is basically a gutted DS: same type of touchscreen technology, some communication abilities, and a display. The display is better than the DS display, but then the device has minimal processing capabilities to balance against that.



Monster Hunter: pissing me off since 2010.

teigaga said:
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.  

 

i don't think sony can and will take a huge loss on ps4. they cant afford a 100 dollar hit on every system imo. one year and a $399 price tag ain't gonna be enough for the ps4 to be a significantly jump over wiiu...



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Furthermore, I think VGChartz should add a "Like"-button.

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


That $150 is probably including the typical extreme mark-up that is associated with accessories ...

IIRC wired controllers for the PS2 and Gamecube were (roughly) $25, with the Wavebird selling for $35, and console manufacturers were making a lot of profit off of these. In this generation controllers increased to costing $50 even though they were not substantially more complicated than the Wavebird. While I could be wrong, I suspect that the typical controller is now selling for 400% its manufacturing cost.

If I was guessing, I would expect the Wii U tablet would add $25 to the cost of the system above the cost of a conventional controller; certainly, a noticeable increase but it wouldn't be as dramatic as some people expect.

 

Ultimately, as I said in a different thread, Nintendo is a conservative company (read: cheap) and will not take the massive losses that Sony or Microsoft will but they're not incompetent; and if they could release the Wii U for a lower price and/or increase the processing power while retaining their current price they would. Hypothetically speaking, if Nintendo was willing to take the kind of losses that Sony and Microsoft were they could possibly increase processing power by 50%, if they were willing to release their system to be much larger while running hotter they could increase the processing power by another 50%, and if they were willing to sell it for $100 more they could increase processing power by another 50%; but the only way beyond that is producing a system with many negatives simply to get more processing power.



WiiU will be sold at a loss in the States, but at a profit in Europe.



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TomaTito said:

WiiU will be sold at a loss in the States, but at a profit in Europe.


According to?



DélioPT said:
Wasn`t the GC sold at a loss for some time too?


They took a $9 hit during the launch quarter.

 

I suspect, if indeed they are taking a loss, they are only taking a loss on the US sales.   The exchange rates break down like this:

Basic: ¥26,250 = $328.81   (US price = $299.99)
Deluxe: ¥31,500 = $394.62   (US price = $349.99)

So we already see they are taking a $28.82 and $44.63 difference in the US.   Those aren't necessarily losses unless the Japanese price is break even or at a loss as well.   If the Japanese price is at a profit, you have to subtract the difference in the Japanese profit and those US price differences.



The rEVOLution is not being televised

I will wait for the IR Event on Nintendo Investors Relations to see if the Wii U will be sold at a loss or profit. I think the Wii U will be sold at profit on the hardware side; however, marketing, R & D development, and other expenses taken into account, the Wii U will be sold at a loss on launch. This should only be temporary.



Train wreck said:
TomaTito said:

WiiU will be sold at a loss in the States, but at a profit in Europe.

According to?

Mii.

Wii U Basic

  • Japan: 26250 yen
  • Europe: 31000 yen
  • US: 24000 yen

Wii U Premium

  • Japan: 31500 yen
  • Europe: 36000 yen (console) - 5000 yen (Nintendo Land)= 31000 yen
  • US: 28000 yen (console) - 5000 yen (Nintendo Land) = 23000 yen

Wii U Deluxe

  • Japan: 38850 yen
  • Europe: 40000 yen


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a small loss at launch is fine but basically this means wii U doesn't take off at launch they won't be able to afford an emergency price cut like they did with the 3DS. and I still think 5.5M this fiscal year sounds too high of a target. i just don't see wii U getting anywhere near the same attention that wii got.