Soundwave said: I really, really, really, reaaaaaaaally doubt it costs more today to produce than when it launched. DDR3 RAM, something that's likely the equivalent of a 450 GFLOP GPU, three cheap ass CPU cores, and a very low resolution touch panel with a $3 battery pack aren't components that are magically going to increase in cost. There's nothing exotic or crazy in the Wii U design other than maybe the 32MB eDRAM.

Thats fine that you reaaaaaaaally doubt it. You are some random guy on the internet with no inside information and most likely no real life expeirience with a similar product/company. I don't have either of those also. However, what I do have is an economist wife who talks to me all the time about that garbage and 3 math classes that deal with supply and demand curves... all of which say if you produce less you make less... at a certain point if you produce more you make less. It's called law of diminishing returns and it is very real

I can believe Nintendo is having underproduction problems. It's called fixed costs: the production plant is basically a flat fee, so if they aren't selling that many units those flat fees can actually get pretty high when taken on a per console basis.

I still have a hard time seeing it be an issue in six months, though. Nintendo has a pretty strong holiday lineup for their system and it's the cheapest gen 8 console. I see them doing pretty well over Christmas.

Max King of the Wild said: Soundwave said: I really, really, really, reaaaaaaaally doubt it costs more today to produce than when it launched. DDR3 RAM, something that's likely the equivalent of a 450 GFLOP GPU, three cheap ass CPU cores, and a very low resolution touch panel with a $3 battery pack aren't components that are magically going to increase in cost. There's nothing exotic or crazy in the Wii U design other than maybe the 32MB eDRAM. Thats fine that you reaaaaaaaally doubt it. You are some random guy on the internet with no inside information and most likely no real life expeirience with a similar product/company. I don't have either of those also. However, what I do have is an economist wife who talks to me all the time about that garbage and 3 math classes that deal with supply and demand curves... all of which say if you produce less you make less... at a certain point if you produce more you make less. It's called law of diminishing returns and it is very real

Computer components like that drop in price it's just common sense. What Nintendo's using in the Wii U are dated components for one. They're not even using the more expensive 28nm fab process, they're using the more mature 40nm lines. For second, I doubt Nintendo is dumb enough to sign contracts based on a per shipment basis, where one or two slow quarters would handcuff their bottom line. This is a billion dollar company, not the corner mom and pops electronics get up. These deals with suppliers are done in advance for millions of orders that are anticipated over years.

A parts supplier is not going to piss Nintendo off because their initial shipment didn't go as well as they planned either.

Ask your wife about currency flucuations too, she should be able to englighten you with her 3 math classes since you seem baffled by the concept. There's a reason why every large Japanese exporter's stock is way up this year, it's because of the policies of the Abe government devaluing the yen.

pezus said: Einsam_Delphin said: pezus said: games+holidays-next-gen shelf space-unfavourable price point Elaborate! Also if you're in the Pricecut 2013 camp, when do you think it should happen and by how much? I bet no matter your answer I can explain how I think it wont make much of a difference. Pre-BF and pre-PS4/Xone launches. Probably October. By $50 and maybe bundled with a game. Then another $50 when MK comes out and they realize the price cut didn't help enough.

That's not as outlandish as I thought it'd be lol. October is possible, but still I think very unlikely. Very close to holidays, and I'd think Nintendo wants to go through their current Wii U stock before dropping the price, that way the price cut wont hurt profits as much. Your reasoning for the second cut is another reason they wont bother this year. Games + Holiday + Advertising will already be boosting sales, and they'll probably wanna see how well the Wii U does after it actually has decent library of games. It probably wont be doing that amazingly still, and as of right now there's nothing in between SM3DW and MK8, so a price cut in February/March would be better to help maintain momentum until MK8.

I was going to post but it looks like Soundwave already addressed it. Wii U is most likely being sold at an operating loss but a net profit due to currency fluctuations. They can probably do a price drop. It may come in the spring, or maybe sooner. The dropping of the Basic model in Canada makes me think a new pricing structure of some kind is on its way.

Soundwave said: It needs a price cut because there isn't much of an adult following for the console, they have to be able to sell it to kids and $350 is just too expensive. Parents get put in charge of buying the Christmas gift and they'll opt for a cheaper 360/PS3 and some cheap $20 LEGO games or just buying their kids a budget $200 tablet or something this fall. Nintendo fans, who make up much of Nintendo's adult following I hate to say it are cheap too. They are used to not paying a lot for a Nintendo console and a lot of them won't budge until there's a price reduction either. I'm always a bit surprised to find out when some of the most ardent Wii U supporters/fans on message boards don't even have the system themselves yet. It puts Nintendo in a bad spot because there's none of that adult hipster crowd who drop $300+ on the regular going crazy for the Wii U like the Wii got early on.

I have to admit, while I like Nintendo and plan to buy a Wii U, I have not done so yet.  Lack of games and price have to do with it.  They are linked together in a way.

ethomaz said: I always said here the Gamepad cost over $150 for Nintendo... there is no way to sell the Wii U at $300 with profit with so expensive Gamepad. BTW the Gamepad is not a game change IMO.

I'm going to have to pull my "you're a crack head" card here, because that's rediculous.  What is the difference between the Wii U controller and a standard Xbox 360 controller?  The screen and the Wifi Direct chip?

MAX of 50 combined.  I (me, not a company) can buy 500 pieces of a 7" display with touch for $40.  The 6.2" size is very popular in car stereo/gps, so Nintendo isn't paying more than 30 for the display even at their volumes, and 20 for the wifi direct chip (I USED TO WORK FOR BROADCOM)

Those are pessimistic numbers.  So if a 360 controller cost 30+50 adder, you're looking at 80 cost.  Again, pessimistic.  Still expensive, but 150 is rediculous dude.

g911turbo said: I'm going to have to pull my "you're a crack head" card here, because that's rediculous.  What is the difference between the Wii U controller and a standard Xbox 360 controller?  The screen and the Wifi Direct chip? MAX of 50 combined.  I (me, not a company) can buy 500 pieces of a 7" display with touch for $40.  The 6.2" size is very popular in car stereo/gps, so Nintendo isn't paying more than 30 for the display even at their volumes, and 20 for the wifi direct chip (I USED TO WORK FOR BROADCOM) Those are pessimistic numbers.  So if a 360 controller cost 30+50 adder, you're looking at 80 cost.  Again, pessimistic.  Still expensive, but 150 is rediculous dude.

And Nintendo support charges you $140 do replace (yeah you need to send the old one).

And no... it is not only a touch screen... there a lot more expensives parts in this device.

ethomaz said: g911turbo said: I'm going to have to pull my "you're a crack head" card here, because that's rediculous.  What is the difference between the Wii U controller and a standard Xbox 360 controller?  The screen and the Wifi Direct chip? MAX of 50 combined.  I (me, not a company) can buy 500 pieces of a 7" display with touch for $40.  The 6.2" size is very popular in car stereo/gps, so Nintendo isn't paying more than 30 for the display even at their volumes, and 20 for the wifi direct chip (I USED TO WORK FOR BROADCOM) Those are pessimistic numbers.  So if a 360 controller cost 30+50 adder, you're looking at 80 cost.  Again, pessimistic.  Still expensive, but 150 is rediculous dude. And Nintendo support charges you $140 do replace (yeah you need to send the old one).   And no... it is not only a touch screen... there a lot more expensives parts in this device.

The gamepad does not cost over $150 for Nintendo.

Controllers are always sold at ridiculously high retail profit margins.

Xbox 360 controllers, for example cost $11 to make (back in 2006, dunno about now) but the controllers sold for $50 or more at retail.

g911turbo's estimate is a pretty good one.

Anari said: The gamepad does not cost over $150 for Nintendo. Controllers are always sold at ridiculously high retail profit margins. Xbox 360 controllers, for example cost $11 to make (back in 2006, dunno about now) but the controllers sold for $50 or more at retail. g911turbo's estimate is a pretty good one.

Nintendo doesn't sold the GamePad... this one is REPLACE.

Minamoto said with a GamePad like Wii U the Xbone/PS4 shoud add "easily $100" fo the final price of the console.

http://www.ign.com/boards/threads/miyamoto-says-playstation-4-xbox-one-“easily-100-more-if-they-came-with-gamepad”.453121587/

The Wii U GamePad is crazy expensive for Nintendo.