Nintendo loses 21 dollars with every Wii U sold

Porcupine_I

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Porcupine_I on 31 January 2013

i'm pretty sure that is not how you calculate it

...it actually sounds like a Joke fitting for an xkcd cartoon

“It appeared that there had even been demonstrations to thank Big Brother for raising the chocolate ration to twenty grams a week. And only yesterday, he reflected, it had been announced that the ration was to be reduced to twenty grams a week. Was it possible that they could swallow that, after only twenty-four hours? Yes, they swallowed it.”

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Deyon on 31 January 2013

Is the Wii U Basic Edition profitable?

Because if they are losing 20 dollars on the Deluxe edition they can still earn it back and even more with the Basic edition.

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Soundwave on 31 January 2013

Deyon said:
Is the Wii U Basic Edition profitable?

Because if they are losing 20 dollars on the Deluxe edition they can still earn it back and even more with the Basic edition.

More likely the basic is actually the bigger money loser.

A few pieces of plastic (charger/cradle) + a 10 cent Nintendo Land disc + what likely amounts to an extra couple of bucks of flash RAM (keeping in mind Nintendo does not pay consumer prices for components obviously) for a $50 mark up.

The deluxe they're actually probably making money on, it's the basic that they lose money on.

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peachbuggy on 31 January 2013

Extra costs have to be factored in for maketing, shipping, boxart etc.

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amp316 on 31 January 2013

This is why I'm a crappy Nintendo fan. I took 21 bucks from them.

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UncleScrooge on 31 January 2013

ryuzaki57 said:

Player2 said:

Just when I thought that gaming journalism couldn't get worse.

What they are doing is Nintendo's operating loss = (Wii U manufacturing costs - Wii U price)x units shipped.

So they are assuming that excluding the Wii U everything else (anything 3DS, DS and Wii related, marketing, R&D costs, etc) magically cancel each other.

This. The calculation is just wrong : WiiU has a negative impact (as well as payroll among other things), but 3DS, DS, Wii have a positive impact on op. result, so no whatsoever conclusion can be made from this.

Thirded. Its just... wrong.

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Deyon on 31 January 2013

amp316 said:
This is why I'm a crappy Nintendo fan. I took 21 bucks from them.

Don't worry, you're still ok in their book. Nintendo makes a profit off your purchase If you buy 2 games with the Wii U.

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mike_intellivision on 31 January 2013

In case you did not know if, the "Examiner" is basically a blog site.

And Operating Loss = (Wii U Loss) - [Wii Profit + 3DS Profit + DS family Profit + Software Profit]

Said equation only works if sum of Profit = 0.

Loss is probably at least $50.

Cost of 7-inch Google tablet -- $200.
Cost of Xbox 360 -- $100 (with subscription)
Cost of Xbox 360 controller $50 (built into Wii U tablet))

Sum of these costs -- $350.
Cost of Wii U Basic -- $300.

Difference -- $50.

Mike from Morgantown

Cost of Basic Bund

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Somini on 31 January 2013

Deyon said:

amp316 said:
This is why I'm a crappy Nintendo fan. I took 21 bucks from them.

Don't worry, you're still ok in their book. Nintendo makes a profit off your purchase If you buy 2 games with the Wii U.

lol don't feel about it amp316, i did the same when the PS3 released :D

PS: what the hell Deyon, you have posted 166 times since 26-01-2013!? hehe that's some dedication. Welcome to our little community ;)

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