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


$299.99 Wii U w/Nintendo Land + Zelda: WW (special holiday promotion) this fall

$249.99 Wii U next summer.

They gotta get to $249.99, in all honesty, probably more like $199.99.

It's gotta be affordable to kids and cheap enough that cost concious parents don't keep buying a cheaper 360/PS3 instead.

That right now I think is absolutely killing Nintendo. They gotta start making some head way with kids/parents. Sony/MS are killing Nintendo by having cheaper options on the market with far more games which is stunting Nintendo for the kids/"parent buying their kid their first or second console" crowd.

The hardcore/adult gamer is a lost cause, Sony/MS invest all their resources towards that audience, Nintendo just can't compete and the Wii U isn't hardware wise enough of a leap beyond the existing PS3/360 to impress that crowd nor does it have the same third party backing. 1 Bayonetta or Metroid a year just isn't enough to viably compete.



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RolStoppable said:
Soundwave said:

(...)

Do you already own a Wii U?


I've bought every Nintendo console the day of launch since the N64.

I do understand what kids go through with the SNES me and my brother practically had to beg our parents to get one, they didn't want any part of it because we already had an NES, but once the price dropped we were finally able to get a SNES.



No point if there aren't enough games to garner interest cutting the price would be useless. They timed the 3DS price cut to come out in a period sandwiched between remakes of Ocarina of Time and Star Fox 64 and just before the releases of a new 3D Mario game and Mario Kart. The best time for a price cut would probably be around November 2013 or between the 2014 releases of Mario Kart and Smash Bros.



NoirSon said:
No point if there aren't enough games to garner interest cutting the price would be useless. They timed the 3DS price cut to come out in a period sandwiched between remakes of Ocarina of Time and Star Fox 64 and just before the releases of a new 3D Mario game and Mario Kart. The best time for a price cut would probably be around November 2013 or between the 2014 releases of Mario Kart and Smash Bros.


Pikmin 3, Wonderful 101, Zelda: WWHD, Mario 3D World, DKC: TF, CoD Ghosts, Rayman Legends, Sonic LW >= 3DS 2011 lineup.



ninetailschris said:
Horrible article. Wrong prices. Has been since decline that Reggie said one sell of software will lead to profit. Horrible fact checking by a horrible site in my opinion. Unprofessional.

Was about to post something similar. Terrible journalism.



Nintendo Network ID: Cheebee   3DS Code: 2320 - 6113 - 9046

 

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RolStoppable said:
Einsam_Delphin said:

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.

You are overestimating the appeal of the Wii U. This thing, at the very least, must officially be $299 with a game included.

Besides, suggesting a $100 price cut in spring 2014 is more radical than my suggestion. It may only be a $50 price reduction, but this is where consumer psychology comes into play. Having a "2" as the leftmost digit makes a difference. It's basically the sole reason why Nintendo made the Basic set in the first place, but the problem with that was that it was perceived as a gimped version and thus the real price of the system was $349.

On a sidenote, the Basic set must be phased out as quickly as possible. Only one hardware configuration, the only difference between SKUs from then on should be bundled games.



Right now the Wii U should be no more than $200 imo, but that'll change once the system get's some significant releases.

$100 may be radical but it's what needs to happen imo. It's not just that the Wii Us current status calls for radical change, but also because I don't believe a $50 drop would have much of an impact. A lot of stores have already been slashing the price, and because $299 is still in the Wii U's price range, some people may not notice a change. You're probably right that having the "2" does make a difference, but Nintendo still went beyond that with their 3DS price cut, so it's definitely possible for them to do it again.

And I agree! Basic be gone!

What's worse? The article or some of the comments in here? Guys:

1) Lower hardware sales mean higher costs per unit so obviously they are still taking a loss. And that "2 games to make a profit"-statement is now mute of course because they expected much higher hardware and software sales.

2) To all those people saying "no price cut confirmed": Think again. A price cut means more money bleeding but right now Nintendo has a different problem on their hands: Low install base means the *software* can't sell enough units to cover dev costs. A price cut will increase losses on hardware but it will prevent Nintendo from losing money on software and that's what really matters. I can't do the math myself as I don't have the numbers but under certain circumstances a price cut on hardware will result in a better bottom line. Nintendo has the tools to accurately predict a price cut's impact on their bottom line and can do the math to either a) maximise their profits or b) maximise their market share without the Wii U offsetting the 3DS profits.



Nice laughs
WiiU will have a pricecut this holiday 100%



I want a price cut too because the system needs to start moving at least a little bit off store shelves.

Games like Pikmin 3 and Wonderful 101 have no chance with the Wii U as is. They're going to bomb or underperform. These games need some kind of established userbase to sell to.

I mean yah, hurray for Mario, but Mario's gonna be alright whether the next Mario sells 4 million or 10 million, it covers its development costs several times over. Everything else is what's going to get screwed with a system with such a narrow userbase.

"Lets just sit around waiting for Mario Kart launches 18 months post-launch" is an insane philosophy.

If Pikmin 3 underperforms we likely won't see a Pikmin 4 until 2020 or beyond and if W101 and Bayo2 both bomb, that's probably curtains for Nintendo's relationship with Platinum. *That's* what will suck.



RolStoppable said:
Einsam_Delphin said:

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.

You are overestimating the appeal of the Wii U. This thing, at the very least, must officially be $299 with a game included.

Besides, suggesting a $100 price cut in spring 2014 is more radical than my suggestion. It may only be a $50 price reduction, but this is where consumer psychology comes into play. Having a "2" as the leftmost digit makes a difference. It's basically the sole reason why Nintendo made the Basic set in the first place, but the problem with that was that it was perceived as a gimped version and thus the real price of the system was $349.

On a sidenote, the Basic set must be phased out as quickly as possible. Only one hardware configuration, the only difference between SKUs from then on should be bundled games.

But is Nintendo overestimating the appeal of the Wii U?

Their most recent system was the 3DS which failed out of the gate just the same with a lack of games and no one jumping at the gimmick. Nintendo slashed the price, released great games, and brought the system back from the dead. Meanwhile the coming competition failed even worse. After realising the Vita was a joke, they practically did a reverse price cut with the xl.

The Wii U's sales are worse, but it also has better games coming than the 3DS at this point. Nintendo could be believing they can replicate the 3DS's turn around with just software and no price cut. If the coming competition also struggles, Nintendo is in a much healthier position. If things go south this holiday and the xbone/PS4 explode, I'd wager Nintendo would do the price cut right before Mario Kart 8.