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Forums - Gaming - How is it possible that the X1 and PS4 are already basically the same price as a Wii U?

SpokenTruth said:
Intrinsic said:
Two reasons.

1. the gamepad costs Nintendo around $70 to make. while the controllers in the PS4/XB1 cost around $25.

2. for the same reason MS isn't slashing the price of the XB1 and selling it for $199 even if they can afford to. At some point you realize that the cost isn't what is stopping your console from selling. At that point the smarter thing to do is focus on profitability so you can at least recoup most of your losses. And not on market share which could mean you would jut bleed more money.


BoM's in early 2012 suggested a $50 Wii U Gamepad cost. No way it's still $50 today (much less $70.  Where the hell did you find this number?) unless they signed price locked deals with all their vendors and nobody does that anymore.

The gamepad is now on sale in Japan for ¥13,824 while the Pro Controller is ~ ¥4,000. That should make the console with a Pro Controller instead of a Gamepad approximately ¥10,000 cheaper (~$80)

Gamepad:     http://onlineshop.nintendo.co.jp/shop/item_detail?item_id=1877914

Pro Controller:    http://www.amazon.co.jp/Wii-PRO-コントローラー-kuro-WUP-A-RSKA/dp/B009AP23NI



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Justagamer said:
JWeinCom said:
A few things...

Firstly, the Wii U's chipset is highly customized, which means they'll have to pay more for them. The chip was customized to keep energy consumption low... Stupid decision, but there you have it.

An extra LCD screen is going to bring up the price as well.

And of course, Nintendo at this point doesn't really need or want to take a loss leading strategy. Their best bet at this point is to try to make what money they can off of the Wii U, and try to push sales with game bundles rather than price cuts. The Wii U is clearly not competing with the PS4 or XBox One, so no need to get in a price war. Get what you can out of it in its last year.

I've never understood Nintendo's fixation on using the least amount of power as possible. I suppose it's a good thing environmentally, but when they're trying to sell systems, I've never known anyone that said, I'm getting the nintendo system, it uses the least amount of power. 

 

 And of course, the controller. The main reason the wiiu costs so damn much. So many bad choices with the wiiu, it's insane. 


For casual gamers, I think it's nice to have a smaller system.  The power consumption means less heat, which means less needs for fans, so it's smaller and quieter.  I think it's also more of a Japanese thing.  It's not a bad thing, but it wasn't worth the amount of power they had to give up for it.



Nintendo managed the magical combination of choosing crappy underpowered parts which are highly proprietary and therefor expensive. IE: a resistive screen, technology that almost no one else uses anymore, even if the screen is garbage quality, using eDRAM that's only manufactured by one factory in the world (which ironically got bought by Sony), using out of date IBM PowerPC components to ensure backwards compatibility, insisting on a ridiculously low 33 watt power consumption for no real logical reason, etc. etc. etc.

When it became evident the machine was a sales disaster, the parts manufacturers refused to give Nintendo a break on the costs because they weren't confident that the sales of the machine would pick up largely, so it wasn't worth it to them. Sony gets a large break from their manufacturers, because the manufacturers are confident Sony is going to sell millions and millions more of the PS4 in the coming years and don't want to lose that PS4 business, so they're willing to cut on cost, especially if Sony is ordering in such high bulk. Even MS gets the benefit of the doubt because they're selling at a considerably higher volume than Nintendo is. 

And probably about 14-18 months ago, I think Nintendo quietly knowing all this made the internal decision that the only thing worse than a failed console is a failed console that also bleeds you a ton of money (see: Sega Saturn). So they decided not to employ price cuts to "save" the Wii U and to basically let it drown to death slowly. There's no life perserver coming to save the Wii U like the 3DS got early in its life with its huge price cut. 

Basically those three reasons are why the Wii U is where it's at price wise. 



Nintendo knows they lost. They'd rather make the profit they're making in steady streams than attempt to fight the PS4/X1 in deals. They'd get slaughtered regardless of price cut



Soundwave said:

Nintendo managed the magical combination of choosing crappy underpowered parts which are highly proprietary and therefor expensive. IE: a resistive screen, technology that almost no one else uses anymore, even if the screen is garbage quality, using eDRAM that's only manufactured by one factory in the world (which ironically got bought by Sony), using out of date IBM PowerPC components to ensure backwards compatibility, insisting on a ridiculously low 33 watt power consumption for no real logical reason, etc. etc. etc.

When it became evident the machine was a sales disaster, the parts manufacturers refused to give Nintendo a break on the costs because they weren't confident that the sales of the machine would pick up largely, so it wasn't worth it to them. Sony gets a large break from their manufacturers, because the manufacturers are confident Sony is going to sell millions and millions more of the PS4 in the coming years and don't want to lose that PS4 business, so they're willing to cut on cost, especially if Sony is ordering in such high bulk. Even MS gets the benefit of the doubt because they're selling at a considerably higher volume than Nintendo is. 

And probably about 14-18 months ago, I think Nintendo quietly knowing all this made the internal decision that the only thing worse than a failed console is a failed console that also bleeds you a ton of money (see: Sega Saturn). So they decided not to employ price cuts to "save" the Wii U and to basically let it drown to death slowly. There's no life perserver coming to save the Wii U like the 3DS got early in its life with its huge price cut. 

Basically those three reasons are why the Wii U is where it's at price wise. 


with all that said. it makes a new home console in 2016 a no-brainer



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Sell a wiiU model with the pro controller.



I think the gamecube proved an unpopular system does not benefit so much from a price cut (a different case from the PS3 : the price was insane and the console popular enough). They would have benefited a lot from a different controller with a 200$ launch price, but it's too late.



The Wii-U is heavily overpriced and a price cut / new model becomes more likely once they sold all their launch units. The game pad uses very old and outdated technology (display and wireless communication) and can be produced for under 30$. It does not even need components for standalone operation and is basically just a wireless display in a plastic shell with buttons.

The Splatoon / Smash bundle Black Friday deal price will become normal soon because the price can already be reached without a loss. The high price for very outdated hardware is one of the main reasons for the consoles failure, along with the gamepad thatz nobody understands and a lack of games / 3rd party support.



Norris2k said:
a different case from the PS3 : the price was insane and the console popular enough)


The PS3 price was insanely low for a first gen blu-ray player which was supported for years with new features like Blu-ray 3D.



u gotta pay to play!

the best exclus altho its cheap price 249