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Forums - Nintendo - Is Nintendo crazy? Why is the X1 almost the same price as the Wii U this holiday?

Lucas-Rio on 27 November 2014
Lyrikalstylez said:
_crazy_man_ said:
Lyrikalstylez said:

The wii u should be $150

Too much money loss.

$250 would have been nice drop tho.


How? The parts shouldn't be too expensive now a days


Gamepad is worth more than 100$. Nintendo reallu handicapped themselve with that.



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AnthonyW86 on 27 November 2014
cannonballZ said:
AnthonyW86 said:
The Wii-U is terrible value hardware wise if you look at price/performance. You have tablets that beat the system in performance for the same price i mean come on.


Really? What tablets are more powerful?

 

Nvidia's shield tablet is equal or better to a Wii-U and it sports a full hd screen for $299. The iPad Air 2 is also faster, though more expensive because of Apple premium. The upcoming Nexus 9 tablet should also be in the same league.



Lonely_Dolphin on 27 November 2014

You make it sound like the Wii U still has a chance in the console race. That ship has sailed, time for everyone to move on already.



Seece on 27 November 2014

1) Because MS need to try and beat Sony
2) They can afford it
3) They have third party games and online sub revenue/profit to fall back on
4) Nintendo can't afford it and want to make a profit
5) Wouldn't benefit as much from a price cut as much as the other systems



 

alabtrosMyster on 27 November 2014

The Wii U has been overpriced since day one :-/ XB1 or no XB1, the hardware inside the box is not worth more than 150$ (for say a 16GB model)... I could not care less about that tablet/controller thingy.



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Podings on 27 November 2014

Nintendo seems confident they have the goods to back up their price point.

And they kinda do. They have without a doubt the best reviewed line-up of exclusives.

While I was hoping from the start to see the Wii U launch at 250 like the Wii, I don't think simply dropping the price is what will get the Wii U selling. By now it has much more deep seeded problems in the eyes of those not willing to pay up, and fifty dollars off won't do it.

The ones who complain about lack of power won't suddenly think it's powerful. People thinking the gamepad is stupid win't suddenly like it. Those who think the gamepad is a waste of money will just think a $250 system should be only 200 and not include the pad. People who want multiplat titles won't stop wanting them, and people who are disillusioned with Nintendo's franchises won't start lovng them again.

A pricedrop for Christmas would signal nothing but insecurity, and would probably ultimately lose them money.



Game_God on 27 November 2014
AnthonyW86 said:
The Wii-U is terrible value hardware wise if you look at price/performance. You have tablets that beat the system in performance for the same price i mean come on.


WiiU--> home console

Tablet--> tablet



https://www.youtube.com/watch?v=n29CicBxZuw

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Game_God on 27 November 2014
GTAexpert said:
generic-user-1 said:
m$ is desperate to sale xbones, even if they lose alot of mney, nintendo nows they can make profit on a lot smaller installbase. restoring the brand and not losing to much money is the plan of nintendo. a price cut wouldnt help there.

How can Nintendo restore the brand by selling less units of Wii U? You pointed out an even bigger reason for Nintendo to drop the price of Wii U, it would help restore the brand. If its price drops by $50 I would import it.


Brand awarness & perception has nothing to do with sales!!!

Between Skoda & Ferrari, wich brand has the best brand image?

Yet Skoda sells more cars than Ferrari...



https://www.youtube.com/watch?v=n29CicBxZuw

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Game_God on 27 November 2014
Barozi said:
Game_God said:
Cobretti2 said:

More consoles = more games sales = more profits from games

So let's sell X1 at 1$, shall we??? Sales skyrocket ensuing massive profits, right???

There are a quantity of variables, factors to take in account wich you happily swept of the picture like they are nothing... Thresholds, diminishing return, profits from games go tho said game publishers, not all games make profit etc. etc.

While your "More consoles = more games sales = more profits from games" formula isn't necessarly false it's not necessarily true either!

Futrhermore, user base is not dictated only by the price, look at Iphone, not the cheapest phone on the market, yet...

Rather than parting money with a price cut, better & a lot more marketing would do marvels IMO.

and how has that anything to do with what MS is doing ?

at the end of the gen, people will own more than 10 (physical) games for X1. Not even counting MS own developed or published games (which would generate much more revenue), all of them will give MS a profit in royalties.
http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/02/anatomy-of-a-60-dollar-video-game.html
Approx. over 10% of the selling price. If all those games were sold at $60, that means $70 in pure profits. More realistically the average price is probably closer to $40, still $47 dollar in total profits.

+ additional money from buying MS exclusives (Halo, Gears, Fable, Forza etc.)
+ royalties from digital games
+ royalties from DLCs
+ money from peripherals (Kinect, headset, 2nd (3rd, 4th) controller, play and charge kit etc.)
+ money from Xbox Live subscriptions (~50% of XBL members have a gold account)


Sure some of these new owners won't buy enough to make it worthwhile for MS, but the vast majority will. That's (probably) not going to happen within the first year, but easily over the whole generation. That's why it's important to build a high userbase at the beginning of the gen rather than at the end.

Barozi, I'm not stupid, I'm not saying that MS should sell the X1 for 1$, my point was that there is more than discounting a console in order to have "More consoles = more games sales = more profits from games".

I see people in here saying "Nintendo should slash the WiiU price by 50$" like it's nothing... the basic model is at 200$, that would represent a 25% price cut! In real life you can't do that kind of radical actions just because.

Nintendo knows better than anyone in this forum the margins they have & wherre they are making money, don't you think?



https://www.youtube.com/watch?v=n29CicBxZuw

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Game_God on 27 November 2014
Lyrikalstylez said:

The wii u should be $150


In a wonderful world, every console maker should have their consoles on launch day on my doorstep for free!

Do you think anyone is "happy" to pay for stuff?

I will complete what you wrote:

The PS4 & X1 should be 20$ & games 5$



https://www.youtube.com/watch?v=n29CicBxZuw

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