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Forums - Nintendo - Nintendo still selling Wii U at a loss

JoeTheBro on 07 August 2013

Looks like my prediction of no price cut is sounding good.



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Soundwave on 07 August 2013

Upping the 8GB flash to 32GB + slapping Zelda: WWHD + Nintendo Land into a basic only probably costs Nintendo $10 or so at a manufacturing level.

There ya go, $299.99 Wii U w/Nintendo Land + Zelda pre-installed. That's a decent bundle.



killerzX on 07 August 2013

how's that even possible. im surprised it was sold at a loss at launch. it couldnt have been more than a few dollars. but now 1 year later, still selling at a loss.
have they not reduced manufacturing costs at all?!



Soundwave on 07 August 2013
killerzX said:
how's that even possible. im surprised it was sold at a loss at launch. it couldnt have been more than a few dollars. but now 1 year later, still selling at a loss.
have they not reduced manufacturing costs at all?!


It's more likely that the NOA rep doesn't know what they talking about or is still using Iwata's talking point from a year ago.

Either that or they're getting hosed on component prices. They're probably not seeing the reduction in hardware components either because the system isn't selling, so there's probably less mass production.



Proxy-Pie on 07 August 2013

so the Wii U is being sold at a loss but the PS4 will be sold at a profit???
what the hell



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snyps on 07 August 2013

tablets with huge games usually cost an arm and a leg.. actually nintendo is the only company that makes one. Thank you nintendo for selling 'em so cheap!!



Lonely_Dolphin on 07 August 2013
RolStoppable said:
Doesn't really matter if it's still sold at a loss. They have to cut the price anyway. The weakening yen should give Nintendo enough room for a $50 price cut without suffering too large losses.

Nintendo-like profit is out of the question in the foreseeable future, because right now Nintendo is selling Nintendo-unlike products. Also, a bigger concern than profit is shelf allocation in stores, because if that shrinks too much, then a price cut won't help much in the future anymore. Nintendo has to take the hit this year.


Nah, it'd be kinda mute at this point to pricecut, as games + holidays should be able to see the Wii U through the rest of the year aswell as through their initial shipments. They'll then be able to drop the price by a significant amount ($100) next year, likely with MK8.

Soundwave on 07 August 2013

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.



MoHasanie on 07 August 2013

I hope they are still going to give it a price cut cause it will be very hard for people to justify buying one when the PS4 is only $50 more.



    

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Lonely_Dolphin on 07 August 2013
pezus said:
Einsam_Delphin said:
RolStoppable said:
Doesn't really matter if it's still sold at a loss. They have to cut the price anyway. The weakening yen should give Nintendo enough room for a $50 price cut without suffering too large losses.

Nintendo-like profit is out of the question in the foreseeable future, because right now Nintendo is selling Nintendo-unlike products. Also, a bigger concern than profit is shelf allocation in stores, because if that shrinks too much, then a price cut won't help much in the future anymore. Nintendo has to take the hit this year.


Nah, it'd be kinda mute at this point to pricecut, as games + holidays should be able to see the Wii U through the rest of the year aswell as through their initial shipments. They'll then be able to drop the price by a significant amount ($100) next year, likely with MK8.

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.