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Forums - Nintendo - Reggie was misquoted when he said Wii U profitable after one game

bdbdbd said:
On topic: Was Reggie lying or not? You have to take into account if the numbers stated by Reggie were just calculated figures based on estimations, or real world figures. Was Reggie talking about regional numbers, or global numbers. Was Reggie's statement made as a COO of NOA, when the numbers included only the cost of what NOA pays for games/consoles and doesn't take into account what NCL pays for the manufacturing, whereas Iwata as a CEO have to take into account the costs and revenue as a whole.

It's normal that a BAU or BU makes a shitload of profit, but the company as a whole posts losses (or the other way around). And typical for a "sales" division doing better than ever, at the same time the "manufacture" division spills red ink.

Off topic: I'd expect Nintendo's tactics being that they are able to cut down costs before the competition arrives with their new consoles, so they'd be ready to go into a pricewar and make profit, where the competitors couldn't do the same.

If the competition copycats Nintendo, competitors are going to lose money with an expensive controller/console, and if not, Nintendo is going to have the "edge" due to the controller.

So, what makes Wii U so expensive? The gamepad should be rather expensive; even if it's "specs" would seem like nothing, there is quite a lot of tech inside, with the touchscreen, NFC, Wi-Fi, camera, mic, accelerometers, and of course it needs a processor of it's own.

The CPU should contain "a lot" of cache, which is expensive. Internal memory is flash memory, and even if it's 8GB for Basic and 32GB for Premium, the cost per GB shoots sky-high, when you compare it to the cost per gigabyte on HDD's.

And lastly; retail margins. As Wii sales dropped down due to lack of games, Nintendo isn't in the best position when negotiating the retail cut, so it should be expected that Nintendo had to cut it's own share in favour of retailers share for them to take the device on theis shelves.



Think about what you said. You expect nintendo to be able to 1. drop the price of old technology before their competitors come out. 2. drop the price of the hardware in a price war. and 3. still make profits... wishful thinking. I called the same thing a long time ago about Sony but atleast Sony had blu-ray which drop in cost significantly rather quickly. What does Nintendo have that will reduce cost as fast?



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Chrizum said:
Nintendo is fucking up everything they did right with the Wii. Sound familiar? Why anyone would want to emulate what Sony has done with the PS3, which was probably the worst business plan for a console ever, is beyond me, but Nintendo seem to have completely lost their minds.

The WiiU is terrible, and Nintendo will suffer for it.

What are the similarities with the Wii U and the PS3? Losing money? I hardly doubt Nintendo is losing $200 with each console...

And the wii U is terrible? Sorry to hear that, I played it and I freaking love it, that's just your opinion.



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osed125 said:

And the wii U is terrible? Sorry to hear that, I played it and I freaking love it, that's just your opinion.


Here you go.



Kresnik said:
osed125 said:

And the wii U is terrible? Sorry to hear that, I played it and I freaking love it, that's just your opinion.

Here you go.

Lol thanks ;)



Nintendo and PC gamer

@Max king of the wild: I did think of it even before posting.

Nintendo itself doesn't manufacture it's consoles. They buy the assembly and components from a third party.

As you have a new product, you pay a premium for it, as the manufacturer has to recoup it's investments in product lines and such.
After the investment have been recouped, the assembly line starts to make profit and you're able to make contracts for a cheaper price. The more components you have, the more you are able to cut down the price - but also you have to pay a bigger premium at the start of the production.

The contracts aren't based on how many units you want to buy at the moment, but you're obligated in purchasing X million units in a month for twelve months (the most likely form used). When the contract expires, you're making a new one with new pricetag and new volume or find a new manufacturing partner.


The cost of PS3 did drop significantly, not just the BD-drive, but all of it's components. If it was only the BD-drive that had gone down in price, it would still have a 599 pricetag (instead of 199) and it would still make a huge loss per unit sold.

Now, the tech itself isn't old. To me it looks like Nintendo is pretty much going with the latest tech, just like they did with the Wii.



Ei Kiinasti.

Eikä Japanisti.

Vaan pannaan jalalla koreasti.

 

Nintendo games sell only on Nintendo system.

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Lots of the cost might be from the tablet controller but what about the kenict 2? I am sure that will cost microsoft just as much as the wii u game pad. If not less.

kinect 2 will probably come with the console so microsoft can sell the nextbox to non-gamers 

also i am sure sony and ms will copy nintendos idea with the next box and ps4 (ps vita and ps3 combo is a horrible idea and sony knows it)



Congratz, Nintendo. You have now officially provided value-priced hardware, as opposed to overpriced-but-cheap-by-comparison hardware.



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Chrizum said:
Nintendo is fucking up everything they did right with the Wii. Sound familiar? Why anyone would want to emulate what Sony has done with the PS3, which was probably the worst business plan for a console ever, is beyond me, but Nintendo seem to have completely lost their minds.

The WiiU is terrible, and Nintendo will suffer for it.

Hey, you stole my post, that is exactly what I said in the first answer to the OP.



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