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Forums - Nintendo - Wii U hardware no longer sold at loss, apparently

Yakuzaice on 07 May 2014
Skidonti said:

Well, one explanation I can provide is that the financial document is explaining the losses of the last 12 months, where the WiiU hardware did indeed have a negative impact on profit.
Whereas now they are at break even manufacturing costs or better.

The quote is linked in the OP. It wouldn't make sense to me for them to fudge this, considering they had already admitted hardware losses in the financial document just this morning.

The phrasing "still has" suggests that it is currently having a negative impact on profits.  Or at least was as of March 31st.

The link is just a summary of what I assume this guy heard at the investor meeting.  It isn't an actual quote.  They might have said the Wii U's sold in Japan after they work through their current inventory will be profitable.  Or some other more specific situation.



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Skidonti on 07 May 2014
Yakuzaice said:
Skidonti said:

Well, one explanation I can provide is that the financial document is explaining the losses of the last 12 months, where the WiiU hardware did indeed have a negative impact on profit.
Whereas now they are at break even manufacturing costs or better.

The quote is linked in the OP. It wouldn't make sense to me for them to fudge this, considering they had already admitted hardware losses in the financial document just this morning.

The phrasing "still has" suggests that it is currently having a negative impact on profits.  Or at least was as of March 31st.

The link is just a summary of what I assume this guy heard at the investor meeting.  It isn't an actual quote.  They might have said the Wii U's sold in Japan after they work through their current inventory will be profitable.  Or some other more specific situation.

Yes it probably is something specific as that example. None of us will know without access to the meeting at the moment.
But, at least it bodes well for WiiU hardware surely no longer being a loss in the second half of the year.



Jizz_Beard_thePirate on 07 May 2014
ToraTiger said:
Jizz_Beard_thePirate said:

I think whats really costing them is the whole 0 latency thing between the wiiU and the gamepad... Not even Nvidia shield or the vita can have as much low latency as the wiiU and the gamepad while streaming games and I am sure the tech is quite impressive for that... So theres that, then there is the wiiU hardware itself and the gamepad also has a bunch of things such as a nice camera, mic, speakers, IR blaster, nfc, touchscreen, headphone jack, volume control, wii motion sensor (the bar thing inside the gamepad), battery, accelerometer, gyroscope and its also a controller itself... So I think the cost adds up


The latency thing is impressive, but it's just wireless streaming.  I've been doing that with my PC for the last three years.   The gamepad is only single touch, you need to use a stylus, I can't imangine that screen was expensive to manufacture.  The speakers and headphone jack won't drive the price up much.  The Wii U has basically the same motion features as a Wii Remote,  so I can't see why the tab itself should amount to  100- 150$.

What I ment by the wii motion thing on the gamepad is that it has

that thing built inside the gamepad as well as one that comes with the console itself... I think the cost makes sense to me with all the things that it has. Is it fully justifyable to have every one of those things? Probably not. And yea its wireless streaming, but its propriatary wireless streaming that was made by a joint thing between Broadcom and Nintendo and I really do think it adds up. Sure its not multi-touch but the hardware itself is fully customized and etc. I am not saying the gamepad is zomg impressive... I am just saying there are a lot of things in both the gamepad and console that ramp the cost up. But I don't really know how much each of those things cost so who knows

http://itersnews.com/?p=18378



                  

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curl-6 on 07 May 2014
Zekkyou said:
Who on earth ever said that the manufacturing costs wouldn't go down? o.O

I can't recall names, but more than one user in a recent thread tried to argue that not only would Wii U's manufacturing costs not drop with time, but that they would actually increase. Some poppycock about only brand new tech drops in price, and only if it sells gangbusters.



Max King of the Wild on 07 May 2014
Zekkyou said:
Who on earth ever said that the manufacturing costs wouldn't go down? o.O


Nobody. What was said is old tech doesn't drop as fast. Having smaller than expected production probably made the Wii U more expensive than initial estimations. And that for some parts cost will actually increase like in the case for ps3 hard drives. That is all



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Max King of the Wild on 07 May 2014
Yakuzaice said:

What is the actual quote and its context?

Because in their financial statement they said

"The “Wii U” hardware still has a negative impact on Nintendo’s profits owing mainly to itsmarkdown in the United States and Europe"

http://www.nintendo.co.jp/ir/pdf/2014/140507e.pdf


Exactly, not only that but the tweet is probably an estimation with expected SW sales in the up coming FY.



LemonSlice on 07 May 2014

Doesn't mean much if a retailer is forced to sell it for less.



Scizor_99 on 07 May 2014
Yakuzaice said:

What is the actual quote and its context?

Because in their financial statement they said

"The “Wii U” hardware still has a negative impact on Nintendo’s profits owing mainly to itsmarkdown in the United States and Europe"

http://www.nintendo.co.jp/ir/pdf/2014/140507e.pdf


Probably semantics with the exact time in the year they're referring to.



Max King of the Wild on 07 May 2014
curl-6 said:
Zekkyou said:
Who on earth ever said that the manufacturing costs wouldn't go down? o.O

I can't recall names, but more than one user in a recent thread tried to argue that not only would Wii U's manufacturing costs not drop with time, but that they would actually increase. Some poppycock about only brand new tech drops in price, and only if it sells gangbusters.


AAAAaaaaannnnd your tweet still doesn't address what was actually said and the multiple people who you were talking to have responded in this thread already



curl-6 on 07 May 2014
Max King of the Wild said:
curl-6 said:
Zekkyou said:
Who on earth ever said that the manufacturing costs wouldn't go down? o.O

I can't recall names, but more than one user in a recent thread tried to argue that not only would Wii U's manufacturing costs not drop with time, but that they would actually increase. Some poppycock about only brand new tech drops in price, and only if it sells gangbusters.


AAAAaaaaannnnd your tweet still doesn't address what was actually said and the multiple people who you were talking to have responded in this thread already

Zekkyou's response is a good indicator of just how absurd the "won't drop in price" BS is.