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Forums - Nintendo Discussion - Why Nintendo doesn't care about installed base?

Nintendo doesn't care? Didn't the WiiU and the 3DS had severe (official and unofficial) price cuts in their first year each to stimulate sales?

I got my WiiU-premium-Nintendoland-bundle for £178.49 only 14 months after launch... that's 60% of the initial price.



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Install base do not equal bigger profit all the time. If i take as an example the videocard industry, AMD and Nvidia shares are 97% vs 3% for Matrox but Matrox do much more profit than the 2 others.



They do care.

/ thread



Dulfite said:

If Nintendo can make more profit off of selling their devices at their current prices than they could by slashing Wii U console costs by $50-100 and having a larger install base then that is what they will do. It has been, is, and will always be about profit for Nintendo. That's how they have so much excess cash over the years. Nintendo could probably make more profit off selling 30 million Wii U's than Microsoft could off selling 80 million xboxones or playstation 4's.



I agree with u there. From what I understand lately and correct me if I am wrong is Sony and Ms are ready to sell as a lost the first years, paying incentives to the 3rd party to have their games on their machines. 

As for Nintendo they refused to enter in the spiral and they pay the price on the amount of user based, 3rd parties dropping them or creating bad port, but in the end the tactic might make them more raw profit. 

I am not a fanboy but I like better that they follow their tactics, because what's coming with the 3rd parties is not pretty in general and bad news fr the gamer in general 



Marcusius said:
Dulfite said:

If Nintendo can make more profit off of selling their devices at their current prices than they could by slashing Wii U console costs by $50-100 and having a larger install base then that is what they will do. It has been, is, and will always be about profit for Nintendo. That's how they have so much excess cash over the years. Nintendo could probably make more profit off selling 30 million Wii U's than Microsoft could off selling 80 million xboxones or playstation 4's.



I agree with u there. From what I understand lately and correct me if I am wrong is Sony and Ms are ready to sell as a lost the first years, paying incentives to the 3rd party to have their games on their machines. 

As for Nintendo they refused to enter in the spiral and they pay the price on the amount of user based, 3rd parties dropping them or creating bad port, but in the end the tactic might make them more raw profit. 

I am not a fanboy but I like better that they follow their tactics, because what's coming with the 3rd parties is not pretty in general and bad news fr the gamer in general 


Exactly right. Marketing a lot doesn't really help Nintendo's games sell well anyway. People ASSUME there will be another mariokart, and 3d mario game, and zelda game, and metroid. It can help a little but they don't have to go crazy marketing like most companies have to do. There best marketing strategy is a free one; word of mouth. It saves them money. A lot of money.



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Conina said:

Nintendo doesn't care? Didn't the WiiU and the 3DS had severe (official and unofficial) price cuts in their first year each to stimulate sales?

I got my WiiU-premium-Nintendoland-bundle for £178.49 only 14 months after launch... that's 60% of the initial price.


3ds did, and that was a rarity with Nintendo. But it wasn't that long after that when the 3ds models started selling for profit. For the Wii U, it was only a $50 price cut (nothing massive) and they have since been releasing more expensive devices that are bundled with games so one could argue Nintendo is more often trying to sell their wii u's for more now then they were then.



Dulfite said:

3ds did, and that was a rarity with Nintendo.

GameCube: launch price lower than the PS2 price in the same time frame and price cut to $99 in its second year.

Nintendo cares about market share & install base like any other company. If they are on top, they can afford to wait with price cuts, but if it is an uphill race they have to stimulate sales one way or the other.



Who says they don´t?...of course they do, a bigger install base = more people to sell your software to, but depending on the 'road' to get there, sometimes it´s better to scale back the importance of it.



fatslob-:O said:
Maybe it's because they can't do anything about it ? ...

Sacrificing profits to get a couple more customers on board isn't exactly a smart idea either and especially considering that Nintendo's only market is gaming ...

I disagree with you there. There are plenty of things they could do. And about your second paragraph, I disagree as well. I don't think they would just get "a couple more customers on board" if they take some measures. 

Now let me tell you a couple of things I think they could do: 

1) First thing is a price cut. I know there is a lot of people who think that a price cut will not help, just like many people said that a $50 price cut would do nothing for the X1. Well, those people where wrong with the X1 and I think these people are wrong with the Wii U as well. Now, I think the price cut doesn't even need to be a massive one. I keep hearing that the Wii U has been making a profit for months now, so all they have to do is let go of that profit and take a $10 to $20 loss on each unit. That is an amount they can easily get back with software sales.

2) Add PERCEIVED VALUE to the console. This one is even easier to get. Nintendo has literally dozens of titles they can use to add value to their bundles. For example, why are they not using their Wii titles to add value to the Wii U is beyond me. They went through all that trouble to make the thing backwards compatible just to not take advantage of it?

3) Make bundles aimed to different audiences. So far Wii U's bundles have been aimed mostly to Nintendo's fan only.

If it was me, I would do something like this.

1-For platforming lovers: SM3DW+SMGalaxy 1 and 2 +1 downloadble game of your choice at $259.00 or 269.99

3-For adventure lovers: LoZWWHD + LoZTwighlight Princess +1 downloadble game of your choice at $259.00 or 269.99

4-For action lovers: Bayonetta 2 + No More Heroes + 1 downloadble game of your choice at $259.00 or 269.99

5-For FPS lovers: COD Ghost + Metroid Prime: Trilogy + 1 downloadble game of your choice at $259.00 or 269.99

And the beauty of using old titles to add value to their bundles is that it will cost them almost nothing.

Now, don't you think that offers like this would sell like hot cakes during christmas?



RolStoppable said:
Because they remember the GameCube. Cutting the price of the hardware quickly didn't lead to any long term benefits.

Sounds like another more recent console. Does Nintendo learn?

Anyhow, they might say that they don't care in interviews, but they do. Nintendo wants to sell SW most of all, but without a generous install base that's not possible. I think Nintendo would be able to live off an install base like the N64 had, but not what the Wii U will have.