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Nintendo: Wii U will be sold at a loss

XMNR: In a move that completely contradicts Nintendo's standard console sales strategy, the company announced Wednesday that the Wii U will be sold at a loss.

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WildStyles1760d ago (Edited 1760d ago )

Crazy news. It must be the controller.

Abash1759d ago

Well this raises the stakes and puts even more pressure on Nintendo for the Wii U having a big and successful launch. I have hardly seen any ads for it though

1759d ago
guitarded771759d ago

I'm surprised by this news... Nintendo has always been the day one profit on hardware guys. Anyway, if it's true, it's a good move, because the Wii U is priced right. They'll make it all up in software and as they produce more, profits will be made on the hardware. I think Sony took a huge hit on the first PS3s if I remember correctly, now they make money off them.

WrAiTh Sp3cTr31759d ago

They probably went with a more powerful Cpu at the last minute...

SilentNegotiator1759d ago

Time to sell NTDOY shares. Well, 5 years ago it was, but still....the price has been all downhill as it is.

Zhipp1759d ago (Edited 1759d ago )

@Masane
Actually, they sold the Gamecube at a loss last gen after the price cut, so this isn't exactly new for them. It's their first time LAUNCHING a system at a loss, though...I think.

My question is: Which version of the console is being sold at a loss? Considering that the components included in the delux bundle aren't all that expensive(and I don't think they can factor in the development costs of Nintendoland) even if they are losing money on the Standard console, they may still be pulling a profit on the Delux edition. Either that, or they're losing money on the Delux, and losing even more on the Basic.

+ Show (2) more repliesLast reply 1759d ago
dark-hollow1759d ago

I doubt that the gamepad is THAT expensive to manufacture.

You would be surprised to find how cheap a piece of plastic with 6 inch 480p TN display cost to make.

hellvaguy1759d ago (Edited 1759d ago )

http://www.samsung.com/us/a...

The 5.5" $299 Galaxy Note 3 touchscreen says hi.

That gamepad happens to have built in controls plus a touch screen. Hugh cost increase from a regular 6" screen. But Im sure you already knew that Derp-Hallow, being so in the electronics manufacturing sector.

rpd1231759d ago

@hellvaguy

There's a difference between production cost and retail price. Typically retail price is higher than production cost so people can make what's called a "profit".

ChickeyCantor1759d ago

@hellvaguy

The gamepad doesn't come with a CPU/GPU. A circuit board for buttons and 2 analog sticks are dirt cheap.

SonyNGP1759d ago

@hellvaguy

$300 with a 2 year contract. $650 suggested retail price (without a contract).

Try again.

Also, it's the Galaxy Note 2. Get your facts straight.

+ Show (1) more replyLast reply 1759d ago
stragomccloud1759d ago

Actually the controller costs only about 50 to make. They'll be selling it for about $100(Well in Japan, anyway). So I imagine it has to do with the system itself. Afterall, the controller isn't a standalone system, it's just a controller with a screen on it, it basically just needs receiving hardware.

OooHJohnny1758d ago (Edited 1758d ago )

100 bucks to get a second controller? no way!

Qrphe1759d ago

It has to be the system. It seems the costs reside in the manufacturing of the device and not the component themselves.

Queasy1759d ago

It's not just the cost of the components but boring stuff like exchange rates too. The Yen is so much stronger than the dollar and euro that it is costing Nintendo money to sell stuff overseas.

torchic1759d ago

I'm pretty sure the Wii U is built in China...

Queasy1759d ago

@torchic: The fact that the Wii U is built in Japan doesn't matter when the exchange rate between the Yen and Dollar/Euro is so out of whack.

GraveLord1759d ago

Yup. It's all because of that controller. We already know the console itself isn't anything special.

Anyway they're probably taking only a small loss.

JellyJelly1759d ago

"We already know the console itself isn't anything special."

Have you played it? I haven't.

Outside_ofthe_Box1759d ago

Wow, crazy news indeed. The Wii U is being sold at a loss and fools are saying the system is overpriced? Not only that, they want and are predicting that Nintendo is going to cut the price few months after launch after all the hardcore gamers buy it? Yeah I'm not seeing that happening.

Oh_Yeah1759d ago (Edited 1759d ago )

Nintendo can afford to sell consoles at a loss for over a decade if they really wanted too. Don't kid yourself.

otherZinc1758d ago

I played the Wii U today at Best Buy.

Soccer Moms are going to be pissed when they find that Lil Johnny & Timmy have to share the Wii-Pad. AND they cant buy another to appease Timmy.

Playing on the tv then playing looking down at the pad, I didn't like that.

I predict it will sell to the Faithful but that mass Soccer Mom craze isn't happening this time around.

This may be a mega fail.

+ Show (6) more repliesLast reply 1758d ago
LX-General-Kaos1759d ago (Edited 1759d ago )

Interesting news

If Nintendo is selling at a loss that marks me wrong with my prediction of them returning to great profits leading into 2013. But more importantly what does this mean for other corporations who have been said to have "much more capable hardware" Than the Nintendo Wii U entertainment system. It makes me wonder if such a risk is still worth taking, especially from brands that are financially unstable. I always believe that making a profit from day one was one of the most important business decisions within a console launch. These days not even a company as conservative as Nintendo can create such a reality.

If this is the story for the Nintendo Wii U entertainment system, it will be interesting to see if any major risks are taken from anyone else hardware wise next generation. It looks like there will be balance issues between raw graphical capability VS advancement and innovation.

What would you rather have your platform of choice do? Take the Nintendo path taking on expensive innovation, or shoot for a massive graphical leap?

Rated E For Everyone

Neonridr1759d ago

they didn't say how much of a loss they are taking, it could end up being like 10 bucks for all we know.

LX-General-Kaos1759d ago

That is understood, but the greater the risk the greater the loss typically.

cleft51759d ago

Even at 10 dollars that adds up to be a great deal of money. Lets say it's only 5 bucks a lost per console. After a million consoles that is $5 million that Nintendo has lost. Every penny counts, especially when you take into account the current state of the economy.

Neonridr1759d ago

Don't get me wrong, I am not supporting the selling at a loss idea, but if it increases their user base by selling it for less, then you have to appreciate it. Th PS3 sold for a big loss for a while. And if the Wii U is selling for a loss at $350, then how much you think the PS4/720 are going to sell for?

DeadlyFire1759d ago (Edited 1759d ago )

Well there is word that the costs are up to $375 bucks for production. $25-50 loss isn't much and likely the pad controller is to blame. Even so its very likely that goes away in a short while.

@neonridr
PS4/XB3 shouldn't cost more than 400-500 bucks without Kinect2/Move2 anyway.

+ Show (1) more replyLast reply 1759d ago
HammadTheBeast1759d ago

I'd be mad if the company I worked for hadn't told me all this. Aren't you?

beerkeg1759d ago

Why would it matter to you if you were working for them? You'd still be getting paid regardless.

HammadTheBeast1759d ago

Sarcasm, because Kaos' every post is that of a Nintendo PR.

rpd1231759d ago

This guy, making them jokes. Good one, Kaos shits out Nintendo PR on every article there is.

cleft51759d ago

I can honestly say that this news shocks me, just because Nintendo is known for not doing something like this at all. I think this definitely puts to rest the nonsense notion that Nintendo is intentionally selling less consoles to artificially increase demand. If anything, they need to move as many consoles as possible to get the cost of the technology down. This also explains why we aren't going to be able to buy a second Gamepad right away.

Ultimately, I feel like this was the right move for Nintendo. They needed to make this push now why they still have the hyped and revenue from the Wii. I just hope they aren't selling their consoles at too much of a lost.

tiffac0081759d ago (Edited 1759d ago )

This came as a surprise to me too since I can't remember the last time Ninty sold a console at a lost at launch. They usually sell them at a profit from the get go.

Then again I've learned to never underestimate the Big N.