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Forums - Nintendo - Predictions on Wii U price cut

Another price cut?

The basic is already 199, the premium 299. Why cut the price again?



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Soundwave said:
Osc89 said:
Soundwave said:
AnthonyW86 said:
When they can cut it without making a notable loss per unit sold. So that's by the end of the year at the earliest and no more than $50.

Given yen/dollar flucuations that's probably right now already to be honest.

I remember someone else posted that the yen/dollar differences now just from last November alone means that a $350 Wii U in North America actually nets Nintendo the equivalent of $430 today ($70 extra profit per unit) because of a weakening yen.

You're not selling hardware, and you can't sell any software, neither can third parties (so you can't make money off royalty fees either). It's only to Nintendo's benefit to swallow their pride and get the damn thing at least moving at some pace off storeshelves.

Nintendo keeps a significant percentage of their cash holdings abroad, so they don't see a significant benefit from a weakening yen. This is a good thing, as they are protected, but they won't cut prices based on exchange rates.

The hardware components are still purchased in Japanese yen AFIAK.


Normally, a weak currency means another country can buy more of your product, but with the way they work it is the equivalent of Nintendo in Japan selling to Nintendo in America. So any gains made by the Japan branch are cancelled out with losses by the American one.



PSN: Osc89

NNID: Oscar89

Soundwave said:

The rumblings of a $99.99 XBox 360 is much problematic for Nintendo, IMO it cuts the legs off some demographics they are banking on like the family/kids and "casual looking for something else to upgrade to from their Wii" market. I think a lot of those folks will look at the 360 and see it's half the price, with the same or better third party games and similar performance/features otherwise and choose to get that.

I don't think the $99 Xbox360 will be a major thread given that it won't have an optical drive and all its software will have to be purchased digitally. The people that wants to play retail, "proper" games already have a console, that device will only cater those who want a media device and who maybe will buy some of the Arcade games that are cheap.

 

I think they will decide the amount of the price cut (if any) when Sony and MSoft reveal their launch prices, and I doubt it will be more than 50 $/€. They will probably phase out the bacis model, lower the Premium to 300 and change the bundled game for NSMB U or maybe the Zelda remake, with other bundles with third party games costing a bit more.



Please excuse my bad English.

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Wasn't the 99$ 360 thought to be the 720 BC add-on?



http://gamrconnect.vgchartz.com/profile/92109/nintendopie/ Nintendopie  Was obviously right and I was obviously wrong. I will forever be a lesser being than them. (6/16/13)

Soundwave said:
cbarroso09 said:
no price drop this year. people never learn you seem to forget how stuborn nintedo can be!


I dunno they hit the panic button on the 3DS pretty darn quick, and that was selling better than the Wii U without the benefit of a new Mario game.

the difference is.... 3ds was selling for profit turned to selling for a loss... but wiiu is already in that situation, thats why they launch it with mario



 

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Otakumegane said:
Wasn't the 99$ 360 thought to be the 720 BC add-on?

It's also that.

That new 360 is, supposedly, a regular Xbox360 without the optical disc and other extras. It is necessary for BC with Durango, you connect both devices, insert the game disc on Durango and you'll be able to play it and the Arcade games that you had.

But it's also a stand alone device, with rumors saying that this is the device that will have to be "alway on" to work that can work as a media center as well as being able to play the 360 games that you must download into the HDD that it will have.



Please excuse my bad English.

Former gaming PC: i5-4670k@stock (for now), 16Gb RAM 1600 MHz and a GTX 1070

Current gaming PC: R5-7600, 32GB RAM 6000MT/s (CL30) and a RX 9060XT 16GB

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probably a $50 reduction on both models by the end of the year. however, the extra 50 bucks for the deluxe version are mostly for NL. so they could forfeit profit over the bundled game, give it as a download voucher and lower the deluxe price 100 dolars. it would be the equivalent of a $50 cut to nintendo, but a $100 for consumers.

But i think they could keep it for next year. do a 50 dolar reduction in 2013, then use the strategy I mentioned and reduce it do 199 on 2014 holidays.



Soundwave said:
cbarroso09 said:
no price drop this year. people never learn you seem to forget how stuborn nintedo can be!


I dunno they hit the panic button on the 3DS pretty darn quick, and that was selling better than the Wii U without the benefit of a new Mario game.


they never said they were not going to cut the price of 3DS, like they did with the Wii U a few months ago because they are selling it at a loss. 

3DS was priced incorrectly, almost $50 of profits, too much. That is why they cut the price that much. Wii U is not in the same position. Nintendo learned that, but people say no becaue they want it to cost $250, and that is imposssible with that capable machine. 



Beginning of their fiscal year 2014



I think a price drop is very likely this year. The falling yen and slow sales makes it very likely. I believe Nintendo is waiting for pricing info from their competitors, and waiting for more interesting software on the Wii U, before they make it happen.

Fall to me seems like a very likely time, perhaps around the launch of Wind Waker HD. Late August, September or October. It could also happen right after e3 if Nintendo feels its time and they want to make a bang. Soundwave's suggestion that Nintendo is holding back Pikmin 3 to launch with a Wii U post e3 price drop makes a lot of sense.

As far as what the price drop will be, I expect axing of the 8 gig model and the Deluxe moved to $299. I also very much expect new bundles for the fall. I think the Zombi U bundle worked quite well in the US after coming from Europe, and I think we could see more content added aimed at specific groups. Maybe we'll see:

Deluxe: $299
NSMBU Bundle: $349 with Remote&Nunchuck (or with Pro Controller if they patch NSMBU to support it)
Wii U Sports Bundle: $349 with Remote&Nunchuck if Wii Sports U is made and ready for fall. This could be a 32gig white and repace the basic white.
WiiFit U Bundle: $399 with Remote&Nunchuck, balance board and pedometer.

Other bundle options could be a black COD MW4 bundle with pro controller and continuation of Zombi U bundle but at $349.

Regardless, I think a price drop in 2013 is almost a certainty, and I expect Nintendo to continue to target specific groups with bundles, whether its casuals with Wii-title bundles or core with pro-controller bundles. These bundles will help reinforce that Wii U is a both a new system and that it supports these other control options (it's not just a tablet).