Top
300°

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.

Read Full Story >>
examiner.com
The story is too old to be commented.
WildStyles1437d ago (Edited 1437d ago )

Crazy news. It must be the controller.

Abash1437d 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

Masane1437d ago SpamShow
guitarded771437d 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 Sp3cTr31437d ago

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

SilentNegotiator1437d ago

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

Zhipp1436d ago (Edited 1436d 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 1436d ago
dark-hollow1437d 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.

hellvaguy1437d ago (Edited 1437d 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.

rpd1231437d 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".

ChickeyCantor1437d ago

@hellvaguy

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

SonyNGP1436d 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 1436d ago
stragomccloud1437d 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.

OooHJohnny1436d ago (Edited 1436d ago )

100 bucks to get a second controller? no way!

Qrphe1437d ago

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

Queasy1437d 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.

torchic1437d ago

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

Queasy1437d 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.

GraveLord1437d 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.

JellyJelly1436d ago

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

Have you played it? I haven't.

Outside_ofthe_Box1437d 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_Yeah1436d ago (Edited 1436d ago )

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

otherZinc1436d 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 1436d ago
LX-General-Kaos1437d ago (Edited 1437d 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

Neonridr1437d 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-Kaos1437d ago

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

cleft51437d 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.

Neonridr1437d 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?

DeadlyFire1437d ago (Edited 1437d 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 1437d ago
HammadTheBeast1437d ago

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

beerkeg1437d ago

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

HammadTheBeast1437d ago

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

rpd1231437d ago

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

cleft51437d 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.

tiffac0081437d ago (Edited 1437d 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.

DivineAssault 1437d ago (Edited 1437d ago )

Well my friend, it looks like that gamepad costs a pretty penny... If the other companies focus on innovation, then the wii u may be in good shape to stay relevant for the upcoming generation.. If nintendo is going to take a hit on the console, im sure the others will also, as they have been...

It makes me wonder, if the gamepad is roughly $100-$150, the console itself is around $200.. Now if the others build a $400 console & take a hit on the cameras or whatever other innovation selling the package for $500, it may end up being a repeat of this gen all over again...

Game production is going to skyrocket in the upcoming years & it will be interesting to see if companies invest into 2-3 different game builds.. Especially with tablet gaming growing the way it is.. Publishers will have to be careful on what projects they approve for the many different platforms.. Good luck to all sides of the big 3, i look forward to a challenging debate on console dominance in the days to come..

LX-General-Kaos1437d ago

good post man, and I will be ready for future debates when they arise.

neogeo1437d ago

This is also good news. It shuts up the trolls that say WiiU is junk and only cost Nintendo $130 to make. If Nintendo is selling hardware at a loss that tells me the thing has some power and that makes me happy

yeah0kchief1437d ago SpamShow
+ Show (3) more repliesLast reply 1437d ago
lilbroRx1437d ago

I wonder if this has anything to do with the foxconn issue. I remember them insisting on the not selling the Wii U at a loss. Now they won't be able to manufacture it as cheaply(though Sony and Microsoft will continue to use them and everyone will ignore it.) There has to be some new development that brought this about.

Still, I wonder, how much of a loss. Black Wii U is $50 more and the only real expense it offers is a disc they manufacture themselves which can't cost them anymore than 5 dollars. Increasing the flash storage from 8 to 32 GB is also probably no more than $5-$10 dollars.

All of this isn't adding up.

deafdani1437d ago

Three stands, too: one for the console, one for the controller, and one charging cradle for the controller. Yes, they're just pieces of plastic, but they still add to the cost of the bundle.

lilbroRx1435d ago

They add to the consumer, cost but not so much to the manufacturer.

What you are paying $50-$60 for when you buy a game isn't the plastic, but the data held on it. The data held within. That data rests on a hard drive and its costs were paid the day it was finished being developed.

I want to know where "their" loss is coming from. It just doesn't add up.

wiiulee1437d ago

ok...well nintendo did the right thing....and i expected that because with the controller and the graphic gpu processor which every third party developers has said is very powerful then wiiu is quite a system.....haters will hate though and speculate about things that microsoft and sony has yet to announce.....im glad nintendo has not revealed the true spec of the wiiu because i bet sony and microsoft are looking to cut cost by bring out a system that is barely more powerful then the wiiu and shows no difference since they will all be 1080p and let their fanboys run wild about nonsense

Nutsack1437d ago TrollingShowReplies(1)