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

UncleScrooge said:
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.


I know all this! Selling at a loss still isn't the only reason I'm saying no price cut this year.

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There will be a price drop to $299.99 for the 32GB model (no 8GB period).

Even if production costs on the Wii U have no dropped one penny since last November (hard to believe), the yen/dollar flucuation is saving them $70 per unit this year. They should be to drop by $50 in the US (and equivalent in Europe) and still pocket a $20 extra profit per unit.

Betting the farm on a 3D 4-player Mario platformer to sell the machine where a 2D 4-player Mario platformer has failed (rather spectacularily at that) + a DKC game that looks like it almost certainly was a Wii game at birth is stupid.

The price has to be cheaper on top of the new games.



Pretty much what we've all known all along. In other words, still not making profit means no price cut...anytime soon that is... ;)



I asked Pezus this but I actually wanna ask everyone who's saying pricecut 2013. When do yal expect the price cut to happen?


We just got a Nintendo Direct today. I'd think if they were gonna price cut this month, it'd have been announced in that ND. Since it wasn't, I think it safe to assume August is out of the question. Having a price cut during November n December just wouldn't make sense since the holidays will boost sales anyway. So that leaves us with October and September. Quite a narrow window and October is still pretty close to the holidays. Plus Nintendo's last price cut was announced in July and took effect in August.

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

Where has it been said the PS4 will be profitable?

All I've heard is that it will be sold at a loss but no where near PS3 loss levels.



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Einsam_Delphin said:
I asked Pezus this but I actually wanna ask everyone who's saying pricecut 2013. When do yal expect the price cut to happen?

 


We just got a Nintendo Direct today. I'd think if they were gonna price cut this month, it'd have been announced in that ND. Since it wasn't, I think it safe to assume August is out of the question. Having a price cut during November n December just wouldn't make sense since the holidays will boost sales anyway. So that leaves us with October and September. Quite a narrow window and October is still pretty close to the holidays. Plus Nintendo's last price cut was announced in July and took effect in August.

October 11th when Zelda: WW HD launches if not slightly before.

If they're not planning on cutting the price why are there so many aggressive promotions to clear 8GB stock? I mean it's $149.99 in some places in Canada, lol, Wal-Mart's are dumping them for a $100 off.

They are obviously trying to move those out because the 32GB is dropping to $299.99 and its imminent. Retailers have to get rid of their basic stock.

$299.99 this holiday, then $249.99 by next E3 IMO.

Also Nintendo did not announce the $80 price reduction on the 3DS through a Nintedo Direct. Nintendo Direct seems to be basically to share game information.



Even it that "article" is terrible, the Wii U being sold at a loss should be a lesson for Nintendo: FOR GOD'S SAKE STOP USING CUSTOMIZED HARDWARE. Nintendo should've learnt that by now, it makes everything harder for developers, it's more expensive on the R&D part, and it's more expensive in production. The Wii U's hardware is just too expensive for what it is.



Einsam_Delphin said:
I asked Pezus this but I actually wanna ask everyone who's saying pricecut 2013. When do yal expect the price cut to happen?

 


We just got a Nintendo Direct today. I'd think if they were gonna price cut this month, it'd have been announced in that ND. Since it wasn't, I think it safe to assume August is out of the question. Having a price cut during November n December just wouldn't make sense since the holidays will boost sales anyway. So that leaves us with October and September. Quite a narrow window and October is still pretty close to the holidays. Plus Nintendo's last price cut was announced in July and took effect in August.

I can't say I really care for Nintendo to drop the price (I more or less want a Bayonetta 2 bundle with a black or blue Wii U to go with it).  But I'll reckon if Nintendo does feel the need to drop the price (Which they really do need to do) then it'll happen after the holidays since when they'd cut the price there'd be black friday sales so it'll be pointless to do during/before.



Keep in mind a lot of people were saying "no no no no no no, too soon, too soon" to a 3DS price cut right up until the hour that Nintendo announced one on this board, lol. And the 3DS was never selling as poorly as the Wii U has been and didn't have the benefit of a brand new Mario platformer from launch day either.

The Wii U situation is much worse.



Einsam_Delphin said:
I asked Pezus this but I actually wanna ask everyone who's saying pricecut 2013. When do yal expect the price cut to happen?

 


We just got a Nintendo Direct today. I'd think if they were gonna price cut this month, it'd have been announced in that ND. Since it wasn't, I think it safe to assume August is out of the question. Having a price cut during November n December just wouldn't make sense since the holidays will boost sales anyway. So that leaves us with October and September. Quite a narrow window and October is still pretty close to the holidays. Plus Nintendo's last price cut was announced in July and took effect in August.

In 2014...or until they start getting close to or actually receiving profit from each unit sold, they won't drop the price anytime soon. What they could do is drop the Basic set all together and just sell the 32 GB only with black and white (despite that still being small, it's flash memory, much more expensive than GB of a hard drive, so don't expect huge increases anytime soon in size). Since they want "Nintendo-like" profits, they can't drop the price.

Along with that, they should maybe bundle in different games instead of Nintendo Land. I think a Wii U Deluxe / Premium with a game like Super Mario 3D World or Donkey Kong Country - TF would sell like crazy. Of course, they could also sell a 32GB Wii U without a game in it to look appealing at $299 compared to the competition. I do wonder though if selling one without actual storage space inside the console (except some memory for the OS and updates) and instead offer an SD card of 32GB or 64GB, would reduce the price. Because I'm sure that a 32GB SD card is cheaper than actual flash memory like they have in the conosle itself. They would reduce the price there, and not really change anything, aside from the fact that there's an SD Card in the console instead of the internal flash.