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Forums - Nintendo - Could we see an annual $50 price cut for Wii U?

shikamaru317 said:

I'd say that it's plausible. Production costs for consoles go down about 15-20% each year. So they could afford to drop the price $50 later this year, and possibly another $50 late next year.

Do u have a link for the 15-20% each year? I believe u just would like to read up on it.



When the herd loses its way, the shepard must kill the bull that leads them astray.

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A price cut of $30 should be possible after the mario cart release... In June or July maybe. ( although Iwata said that no price cuts this financial year... )





Nintendo would lose too much money on that strategy.



Sigs are dumb. And so are you!

vkaraujo said:
Sorry, but no. You can't lose that much money on each hardware sold and have a profitable business.
Sony showed that to us with the PS3.

Any money Nintendo is willing to invest on Wii U should go to more games or a better marketing. Both if they can.
The only way i see Wii U getting cheaper is if they drop the gamepad, and i don't think this will happen for the next two years at least.

Well we have no idea what the exact amount they are losing on each unit sold is. Lets say $25 loss per unit putting it at $325 and assuming that the poster who said costs come down 15-20% annually is right, that would put the cost as low as $260 by the end of the year or a $10 loss if they in fact do a $50 price cut. With a price cut usually comes increased sales and with increased sales usually comes increased software sales so its not out of the question that they could make up that small loss with profits from software sales.



When the herd loses its way, the shepard must kill the bull that leads them astray.

They can offer a $100 discount if you trade in your PS4, and then actually make a profit by selling it used.

Seriously, they will be able to reduce price in line with manufacturing improvements. Those aren't any different than what MS/Sony can/will do,
and in fact the proportional price differential will almost certainly reduce, as plenty of components just aren't as amenable to manufacturing process improvements (e.g. power supply).
Especially compared to PS4 which lacks Wii U's tablet nor MS' Kinect: it's basically just CPU/GPU/memory and hard drive and power supply,
so proportionately more of the production cost is amenable to process improvements reducing cost.
Sony buying a memory producer (which has and is producing for Wii U) will let them get at-cost memory.



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No, unless sales are so bad that they have no choice but to lower the price.



    

NNID: FrequentFlyer54

too much of a financial risk. Just bulk up the value of the basic throw in a digital version nsmbu for free. Bring more titles and ride out the storm, and plant the foundations for your next gen console



I already told you that Nintendo will most likely give another $50 off in Q4 2K14 for the Wii U, because of sales.

The mark up value will still go up, and the profit from each SKU sold will still be more each year.

But I'm not sure if the Wii U will get a cut in Q4 2015, since it will depend on sells, plus $249.99¢ is a really good deal for the Deluxe with 1 retail game (during Q4 2014 & up).



I don't think so. Sales are abysmally low and Nintendo is still losing money on the console. It would even further accelerate their losses. Not to mention 3DS is starting off very slowly this year, its going to start putting an even tighter squeeze on their financials.



They're in a tough spot here, if they do drop the price they're bleeding money on a console that's another GameCube type failure and that makes it twice as worse.

If they don't drop the price the system is a very hard sell to parents especially if Nintendo wants to sell NFC toys.

XBox 360 and PS3 will be getting price cuts this fall pretty much for sure and will have new Skylanders, Disney Infinite, Star Wars NFC, and Marvel Comics NFC lines coming.