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Forums - Sales - Wii U Sales : Will Nintendo Have to Suspend Production?

Conegamer said:
Mythmaker1 said:

Suspending production is not the same thing as discontinuing a product.

I guess so, but still neither of them will happen. Why would they?

Money, mostly. Like I said, they have, at minimum, 2 million Wii U's burning a metaphorical hole in their metaphorical pockets. That's probably a half billion dollars worth of hardware, and it's not going anywhere for something like 5 months. Tying up production lines costs money, which means making more systems they can't sell yet is just going to burn more money until the holidays. From a purely fiscal view, they SHOULD suspend production until they can liquidate the majority of their stock so as to stop wasting money making systems they can't sell.

However, as people have pointed out, it would cost them a lot of credibility, not to mention good-will among their production companies, if they were to do so. It just depends on what point it becomes too expensive to maintain.

Cyborg13B said:
Wii U seems to have been relegated to its current place, and the odds of it climbing higher are pretty small. 

26,000 sales per week for 11 months would give 1.248 million units sales. Plus 4 times higher for December, will be 416,000. So 1,664,000 million unit sales per year. Over the course of 5 years that would yield 8.32 million. Just about equal to Sega Saturn and Dreamcast. 

Will it climb itself miraculously to the top? No. Playstation 4 and Xbox 3 aren't even out yet. And this only launched 6 months ago. It's over. Why it failed:

1. Outdated, weak hardware. 300 GFLOPS is only about equal to Xbox 360. 
2. Exorbitant pricing. $300 for a device that is not much better then Xbox 360. 
3. Lack of software support. Typical of Nintendo, which wants to corner the market for itself. Ha. That didn't work out so well. 
4. Vastly better products on the market - Playstation 3 and Xbox 360 are equal if not better, and have thousands of games out between the two.

Seems a bit premature to call it a failure. I don't think it'll pull a phoenix here either, but let's be reasonable; the competition hasn't even come out. Wait until we have a baseline before you say it's fallen below it.



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I think they already did. If one looks at their inventories on their financial reports, they have a ton of products in their warehouses.



Mythmaker1 said:
AgentZorn said:
Mythmaker1 said:

Yes, they have plenty of money. But their prestige is on the line, and Iwata has basically put his position on the line to guarentee a certain profitability. It's not as simple as just absorbing the losses.

If they issue a price cut, they'll lose a lot of face, since they publically stated there wasn't one in the forseeable future. The games are coming, but history has shown that games alone do not cause long-term sales growth. Marketing has been a disaster from the start.

Suspending production will only make the situation look worse. It would make consumers, publishers and stockholders very uneasy about the Wii U and possibly destroy any chance of it regaining momentum. Nintendo has something up their sleeve and I don't think they are going to suspend production until they lay everything out.

That's very true. I don't see them getting out of this without making some sort of compromise, but I can't say I'm any kind of expert either.

From what I can tell, they only resorted to it in the case of the Gamecube because shipments dropped off almost completely. Last quarter, shipments of the Wii U were just short of 5x that of the Gamecube, so I don't see them so desperate yet.

That said, at what point do you think they would do this?


I think that they would suspend production if the Wii U sales continue to be mediocre even with a price cut and big 1st party games. Even then I'm not sure they would do it because of what I said earlier.


Judging from Nintendo comments on the Wii U performance, they are not in full panic mode yet.They have yet to show what they have in plan for the Wii U.



Bruxel said:
nintendo has a ton of money in the bank.

if the sales continue to be super sluggish this is what will happen:
-Price cut
-Get tons of games out
-Market them like crazy
-what?
-Profit

I predict this is the 3ds experince all over again.


I predict that is far off target, the Wii U and the 3DS are competing in completely different markets and the situations are similar but far from the same and what remedied the 3DS' situation won't automatically aid the Wii U in the same way. Feel free to ask me to elaborate, right now I need to run to work!

The Wii U will simply not climb to greatness and live shorter than the Wii did/does, it's second to last on the weekly charts and being outsold by the Wii and the Vita and the PSP, nothing like this has ever happened in home console history as far as I know, especially not coming off of a market leader.

If they can't ship their consoles, they can't keep producing and stockpiling them either, that much is certain.



Just hold on Nintendo cuze if Sony pulls shit like what Microsoft is doing, I will and I'm pretty sure a majority of gamers will be buying a Wii-u......just hold on a lil more



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As I mentioned in a thread I created last week, the Wii U shipped 390k units last quarter.

Looking at current npd data, Japanese MC data and weekly data from Europe, the Wii U is at a run rate of about 80k a month world wide and April and May are pretty much in the books. I mentioned that the Gamecube shipped 84k units from April to June 2003 and I feel that the Wii U will put up a pretty close challenge to that number. It'll be a six digit number, but I will be surprised if the range is outside 1XXK.



Train wreck said:

As I mentioned in a thread I created last week, the Wii U shipped 390k units last quarter.

Looking at current npd data, Japanese MC data and weekly data from Europe, the Wii U is at a run rate of about 80k a month world wide and April and May are pretty much in the books. I mentioned that the Gamecube shipped 84k units from April to June 2003 and I feel that the Wii U will put up a pretty close challenge to that number. It'll be a six digit number, but I will be surprised if the range is outside 1XXK.

Nintendo should ship 80k alone in Japan as Nintendo's last shipment, Japan was at 920k, it has surpassed that as of last week. I'd be surprised if they don't ship 200k World Wide though.



I think that suspending all the production would be too much, and unecessary

but i do think that they may be slowing down console production and focus a part of it on manufacturing spare Gamepads, since they will announce on the next E3 games that uses two gamepads, and people will start to want them.



Cyborg13B said:
Wii U seems to have been relegated to its current place, and the odds of it climbing higher are pretty small.

26,000 sales per week for 11 months would give 1.248 million units sales. Plus 4 times higher for December, will be 416,000. So 1,664,000 million unit sales per year. Over the course of 5 years that would yield 8.32 million. Just about equal to Sega Saturn and Dreamcast.

Will it climb itself miraculously to the top? No. Playstation 4 and Xbox 3 aren't even out yet. And this only launched 6 months ago. It's over. Why it failed:

1. Outdated, weak hardware. 300 GFLOPS is only about equal to Xbox 360.
2. Exorbitant pricing. $300 for a device that is not much better then Xbox 360.
3. Lack of software support. Typical of Nintendo, which wants to corner the market for itself. Ha. That didn't work out so well.
4. Vastly better products on the market - Playstation 3 and Xbox 360 are equal if not better, and have thousands of games out between the two.

Well that's pretty premature and factually incorrect. It may be selling poorly now, but saying it'll sell 1.65mil a year is way off. I still see 5mil as a mimimum for this year. Most likely 6-8mil. And it will only build on this next year, selling more than your "predicted" lifetime total in 2014 alone. This is because the games releasing in the second half of this year coupled with the (likely) price cut around the time of the PS4One launches. Nintendo have pretty much written off (at least the first half of) this year, and are instead focusing on the 3DS whilst the Wii U has no competition, a risky strategy.

Your analogy would be far more accurate if we were comparing the situation to the Vita, which has been out for 18 months now and still has no "killer app" on the horizon, whilst the Wii U has at least 2 or 3 (Mario Kart, Super Mario). We shall see next year, where I imagine the Wii U will be outselling the PS4 and XOne on a weekly basis. But obviously we have to see how much the things cost before making any realistic prediction.



 

Here lies the dearly departed Nintendomination Thread.

Mummelmann said:
Bruxel said:
nintendo has a ton of money in the bank.

if the sales continue to be super sluggish this is what will happen:
-Price cut
-Get tons of games out
-Market them like crazy
-what?
-Profit

I predict this is the 3ds experince all over again.


I predict that is far off target, the Wii U and the 3DS are competing in completely different markets and the situations are similar but far from the same and what remedied the 3DS' situation won't automatically aid the Wii U in the same way. Feel free to ask me to elaborate, right now I need to run to work!

The Wii U will simply not climb to greatness and live shorter than the Wii did/does, it's second to last on the weekly charts and being outsold by the Wii and the Vita and the PSP, nothing like this has ever happened in home console history as far as I know, especially not coming off of a market leader.

If they can't ship their consoles, they can't keep producing and stockpiling them either, that much is certain.


to early to jude/predict a future. time will tell, sales are horrible yes but that can/may be flipped upside down. A console is diffrent then a handheld but a price cut to begin with would make the consumer more intrested and it would be much cheaper then the xbone and ps4, all nintendo would need to do is sell a ton of software.

2 diffrent worlds same ball game.



 

WII U // PC // 3ds XL // VITA