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Why a Wii U price cut wouldn't make sense

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goldenpp72

goldenpp72

Member
Duxxy3 said:
coughridiculouscontrollercough
Click to expand...

Of course the controller is expensive, but I have to ask. At some point, Nintendo released the Game Boy Advance SP for 100 dollars and made mad bank on it, is it really feasible that this controller cost a lot to make all around? I've never seen a breakdown of the cost but, to my understanding, a 50 dollar 360 pad is sold at a HUGE profit margin, so adding the shit speakers, a volume rocker, the (low quality) screen, and... The streaming tech? Is that unique controller wise?

I'm curious if this thing cost them more to make than their previous handhelds. I always assumed it would be closer to 50 bucks to make the thing but I don't know what these parts would go for.
 
J

Jarmel

Banned
So you're telling me that Nintendo royally fucked up and there doesn't look to be an easy out to their current predicament.
 
M

mrchampipi

Member
Allan Holdsworth said:
The price was set when the it was 80 yen for a dollar. Now it's at about 95-100. A $50 price cut + extra bundled game is doable.
Click to expand...

Yet the question remains: would people buy it because it's cheaper? Does it sell bad because it's too expensive, or because few people cares/ knows about it?
 
R

Ricerocket

Member
The perceived value of this console is really low. The gamepad is unattractive for gaming.

Nothing will make sense for this console to a lot of people, It's just not interesting and it seems Nintendo thinks this is a $350 value console by eliminating the basic model says they are out of touch.
 
goldenpp72

goldenpp72

Member
mrchampipi said:
Yet the question remains: would people buy it because it's cheaper? Does it sell bad because it's too expensive, or because few people cares/ knows about it?
Click to expand...

They would if there is stuff to play, which will start happening.. Now. Pikmin 3, 101 are small time, but Sonic, Mario, Zelda, Smash, Mario Kart, Wii Fit, etc, would all sell much more much quicker if the price of entry was in the 200 range rather than 350 dollars. Nintendo has pigeon holed their console as something unrelated to what Sony and MS go after, yet they feel pricing their system against them despite being 1/10 the power and having almost no third party support will work out for them.

Nintendo IP is powerful, but it's powerful with children and families along with some hardcore fans. Smash and Zelda can sell a 300 dollar system, but not many of Nintendos IP have that power alone in my mind, it needs to be cheaper as to not continue to cut these games off at the ankles.
 
E

Enter The 36 Chambers

Member
Wii U =

tumblr_lbs25gdyD11qa2ld9o1_500.gif


Dont cry for me, Im already dead
 
L

lamaroo

Unconfirmed Member
A $50 price cut doesn't feel big enough to create momentum, and would just create more money loss. $299 looks a lot better on a shelf than $349 though.
 
Fredrik

Fredrik

Member
Don't know how relevant this is to the world wide sales, but the price cut theory has already been tested in Sweden, innofficially. Super markets has been cutting the price down for a while now:

WiiU Basic
2995 SEK down to 1690 SEK

WiiU Premium
3495 SEK down to 2590 SEK

Popularity stats shows no increase in popularity what so ever.
http://www.prisjakt.nu/produkt.php?pu=1410441
 
J

jrcbandit

Member
Because of the PS4 pricing, they pretty much need a price cut by November, a $350 WiiU vs a $400 PS4 makes no sense. However, Nintendo can't afford a $100-150 price drop which is what would really be needed to spur consumer interest.

Seems like the best course would be a $50 price drop on the Deluxe Edition and add a new pack-in game in addition to NintendoLand. They could throw in an old game like New Super Mario Bro U and have it cost $300, while the new Zelda bundle can be $350.
 
O

OryoN

Member
Yeah, I doubt Nintendo have any near-terms plans for a price-cut. It would kinda set them back to a bit, especially with their last report seeing earnings. Iwata had promised to turn a profit by the end of the this fiscal year, and so far, he's on track. A price cut could change that. Besides, the main thing Wii U needs - software! - is coming.

In related news. I just snagged a Deluxe Wii U - literally about 30 mins ago - on Ebay for $290.00 (USD) + $8.00 shipping. There were only two in stock, and one got sold as I was browsing. It seemed almost too good to be true(serious listing/seller as far as I could tell), but I couldn't afford to let that opportunity pass.

With Wii U's current situation, the chances to find a deal are pretty high. The avid gamer shouldn't have to wait for a price drop, just keep looking(try bidding also)!
 
A

Aquamarine

Member
OryoN said:
Yeah, I doubt Nintendo have any near-terms plans for a price-cut. It would kinda set them back to a bit, especially with their last report seeing earnings. Iwata had promised to turn a profit by the end of the this fiscal year, and so far, he's on track. A price cut could change that. Besides, the main thing Wii U needs - software! - is coming.

In related news. I just snagged a Deluxe Wii U - literally about 30 mins ago - on Ebay for $290.00 (USD) + $8.00 shipping. There were only two in stock, and one got sold as I was browsing. It seemed almost too good to be true(serious listing/seller as far as I could tell), but I couldn't afford to let that opportunity pass.

With Wii U's current situation, the chances to find a deal are pretty high. The avid gamer shouldn't have to wait for a price drop, just keep looking(try bidding also)!
Click to expand...

Nintendo's operating income (the core of their business) still lost the company $49.85 million last quarter, and $368.8 million in the previous fiscal year. They may be making a small net income, but this isn't indicative of a healthy state...especially when Nintendo's non-operating income is boosted by foreign exchange gains, giving the appearance of a healthier company.
 
C

Chindogg

Member
Iorv3th said:
Might not. But I would be more inclined to play Zombi U and Wonderful 101 if I could get the system to play it on for 200$ or less.
Click to expand...

Where is everyone getting this $200 number from? This continues to be the demand on GAF and its just completely myopic to require a modern system (it is modern no matter how much you want to argue) to be the same price as last generation's machines.

$250 is a reasonable request, $200 and below is just absurd.
 
D

darkistheway

Member
The Wii U has had price cuts already. I am pretty sure Nintendo has the ability to analyze the impact of these and has concluded a price cut would not drive a sufficient increase in sales to justify the increased losses.

The Wii U needs a critical mass of games to drive sales - actually it needed to happen in early 2013 but those games got delayed and now it remains to be seen if the amazing, in my opinion, Fall/Winter lineup can spur sales to sustainable level.
 
Petrae

Petrae

Member
I don't envy Nintendo's position currently. It almost seems like a Kobayashi Maru; if Nintendo forces a price cut, losses mount. If Nintendo stays the course, interest in the platform remains weak as competition from last-gen and new-gen strengthens.

Consumers aren't just going to settle for WiiU at $300-$350 if PS4 and/or XBO sell out, so they can say they got something new. It's more likely that they stick with last-gen platforms as there is still a good deal of software coming in the short-term and even in the medium term for PS3 & 360... none the least of which is Grand Theft Auto V, which you can't play on any other platform but PS3 & 360.

At least a price cut, combined with the tardy arrival of big-time games for the WiiU, could work to gain some interest. At $250, it's $150 cheaper than PS4 and half the cost of XBO. That will make consumers think, and then if Mario 3D is as good as hoped and with a little marketing help... it gives WiiU a chance.

I do understand the argument that a price cut may be ineffective without games, but the 3DS began its turnaround with a preemptive price drop before the Mario Twins (3D Land & Kart 7) arrived, which helped to really drive sales.

It's a tough spot for Iwata & company. Best of luck to them.
 
P

PotionBleue

Member
goldenpp72 said:
I've never seen a breakdown of the cost but, to my understanding, a 50 dollar 360 pad is sold at a HUGE profit margin, so adding the shit speakers, a volume rocker, the (low quality) screen, and... The streaming tech? Is that unique controller wise?
Click to expand...

Do you actually own a Wii U? The Wii U GamePad's speakers are nothing but cheap, as well as the screen, etc.. The problem is that most people claiming the console and its controller are cheap don't realize it's… not.
 
goldenpp72

goldenpp72

Member
PotionBleue said:
Do you actually own a Wii U? The Wii U GamePad's speakers are nothing but cheap, as well as the screen, etc.. The problem is that most people claiming the console and its controller are cheap don't realize it's… not.
Click to expand...

I do own the system, same username as my gaf account if that matters. The controller sound is weak in my opinion, paper cup like compared to other devices, and the screen while sharp has horrible colors and is a low quality touch screen that doesn't respond well to non stylus use. I only own 2 retail titles for the system so far (Mario and Nintendoland) but by the end of the year I imagine i'll be over 10 titles for it. I like the system well enough but, I never felt the controller is premium stuff compared to basically any touch devices I have ever owned outside of the DS.
 
P

PotionBleue

Member
goldenpp72 said:
I do own the system, same username as my gaf account if that matters. The controller sound is weak in my opinion, paper cup like compared to other devices, and the screen while sharp has horrible colors and is a low quality touch screen that doesn't respond well to non stylus use. I only own 2 retail titles for the system so far (Mario and Nintendoland) but by the end of the year I imagine i'll be over 10 titles for it. I like the system well enough but, I never felt the controller is premium stuff compared to basically any touch devices I have ever owned outside of the DS.
Click to expand...

What devices are you talking about, and their price?
 
T

Ty4on

Member
Didn't Sony take a 200+ loss on the PS3? They might have to do it if sales don't pick up after the new titles are released.
 
B

balohna

Member
They just need more bundles that appeal to people. That ZombiU bundle is a good value, and the Wind Waker one will be too if it's priced at $350 like its rumoured to be.

I actually just bought a deluxe Wii U for $280 on sale, so I'm good. The upcoming software made me buy the console, but I was waiting to see what kind of holiday bundles would come up or if a sale would happen.

Here's what I would do:

-Drop the Nintendoland-only deluxe SKU to somewhere around $300-325 and drop the basic SKU to $250-275. Cease all shipment of these SKUs, just let them sell out.

- Introduce 2 new deluxe SKUs: Deluxe + NSMBU for $350, Deluxe + WWHD for $350. Also include Nintendo Land in both.

- Introduce 2 new basic SKUs: include Wii Party U for $300, Wii Party U + Nintendo Land + 2 wii remotes for $400.
 
goldenpp72

goldenpp72

Member
PotionBleue said:
What devices are you talking about, and their price?
Click to expand...

3DS, Vita, my last 3 phones, Kindle Fire. Using Vita as an example, the system itself is beastly powerful, i'm sure if you ripped out everything processing related it would be infinitely cheaper to make. My view on the U pad is that they basically have to throw in some cheap speakers and a low quality touch screen. Say the average game pad cost 20 bucks to make (out of ass figure), those components can't possibly cost so much that it would force the controller to be 100 dollars to make. Keep in mind, they aren't selling the pad separately so there is no point in artificially pricing it to make profit when it holds the whole system back. This is why i'd like someone to clarify with better knowledge though.

The Wii U is a weak system, it's barely beyond systems that released 8 years ago, and both of those systems will be 200 or less by the year end by the way, its not impossible to assume the U shouldn't cost more than 250 on its own with a normal pad, so does the pad really add 100 dollars to the literal cost to Nintendo? If so, they're insane.
 
B

bmdubya

Neo Member
Nintendo needs a bundle with a big game to sell units. I wouldn't be surprised to see a $320 or so Wii U with Wind Waker bundle. Hell, if Nintendo released a $300 Wii U Wind Waker and Mario Kart 8 bundle for $350 I would buy one in a heartbeat. It won't happen, but Nintendo needs to take drastic measures to get the Wii U in living rooms. The current strategy is failing.
 
F

Fourth Storm

Member
Yeah, of course it wouldn't make sense to lose that much money per console, especially with the problems at Renesas, and the fact that Wii U's chipset likely isn't getting any cheaper. Just sucks, because they are not going to sell many systems at the current price.
 
M

MarkusRJR

Member
They pretty much have to price drop this holiday season lest they want to lose relevance in the industry, lose more third party support, lose shelf space to PS4/Xbone, and lose consumer interest. Losing money for a quarter or two might fuck up any chance of profits for a while, but by not doing so they risk having a Gamecube or worse level console (in terms of sales potential) for the rest of the generation. This holiday season is do or die for the Wii U and by not price dropping they'd essentially be giving up on the console (like they did with the Gamecube post-Iwata takeover).

Syphon Filter said:
How in the world is the wiiu being sold at a loss?
Click to expand...
Because of the Game Pad and the custom internals instead of common ones (which made them more expensive than they otherwise would have been).
 
T

TomServo

Junior Member
Someone said it earlier, but it bears repeating - Nintendo home consoles have become niche products. They're purchased for platform exclusives, not as a primary home console. Gamers have known this for at least two generations, and after the last generation I'd expect the casual player base understands it as well.

$350 for a niche / secondary console is laughable. This is a $200 product, in terms of market value.
 
M

mrkgoo

Member
JordanLMiller said:
Would it though? Price cut won't help the tiny library.
Click to expand...

I bought one for ~ US$149 (premium), and while I would've intended on getting one by the time Zelda came out, that price was a steal that I couldn't pass up, even if there are no games that are must-play to me currently.
 
G

goomba

Banned
I am waiting for a proce drop.

I bought gamecube at launch for nz$450 and it dropped to nz$250 a few months later.

I bought wii at launch for zelda tp

Wii u still doesnt have a "must have now" game for me but once wiiu drops in price ill grab one along with zombiu, pikmin3 and wonderful101
 
D

Deleted member 125677

Unconfirmed Member
Fredrik said:
Don't know how relevant this is to the world wide sales, but the price cut theory has already been tested in Sweden, innofficially. Super markets has been cutting the price down for a while now:

WiiU Basic
2995 SEK down to 1690 SEK

WiiU Premium
3495 SEK down to 2590 SEK

Popularity stats shows no increase in popularity what so ever.
http://www.prisjakt.nu/produkt.php?pu=1410441
Click to expand...

Yup. Same thing in Norway.

It's not about the price, it just needs more solid titles.
 
M

Mariolee

Member
Snowden's Secret said:
Just curious, which one would you pick:

$250 Deluxe bundle (includes Nintendo Land)

or

$350 Deluxer bundle (includes Nintendo Land, Zombi U, and Call of Duty)

You spend $100 less money in the first but get a better value ($120 free games) in the second?
Click to expand...

If Nintendo put out something like that Deluxer bundle, I would instantly buy it. The trick is to get the consumer to believe that there are a bevy of games for the Wii U by giving them three right off the bat.
 
B

Burai

shitonmychest57
Mariolee said:
If Nintendo put out something like that Deluxer bundle, I would instantly buy it. The trick is to get the consumer to believe that there are a bevy of games for the Wii U by giving them three right off the bat.
Click to expand...

The problem with that approach is that eventually the buyer will go back to the store to buy more software and realise the truth. We've already seen Wii U trade-in prices crater with people offloading them through the drought since March.

Selling a console on potential it doesn't really have is rather risky long-term.
 
Rhazer Fusion

Rhazer Fusion

Member
Sorry, price cut for Wii U is mandatory. I don't think even think $50 off is enough and imo, just releasing more games for it might not be enough to justify $350 or even $300. $350 for a Wii U or a mega-powerful PS4 with strong third party support for $400 will resonate through most people minds during the holidays. Also, for anyone who asks, does PS4 come with a game? Why not just buy a visually comparable, if not better PS3 or X360 for much less money by Fall I am assuming with a much larger library of games and better online? Unless you really need the occasional Nintendo games or exclusives, buying a $350 Wii U over a $200-$150 PS3 or X360 just doesn't make any sense imo, let alone a PS4 for a paltry $50 more. Not to mention that Wii U games are $60 also just like PS4 and XBox One to add fuel to the proverbial fire. Also ,Nintendo needs to start marketing the Wii U if they want people to know about it's existence. Not advertising your new system for nearly a year is absolutely inexcusable and makes it look like you've totally given up on the product. Price drop with aggressive marketing campaign and high profile titles is a must.
 
A

airmangataosenai

Member
Sometimes you have to sacrifice short-term profitability for long-term market relevance. Nintendo fans crow about profits but it is far from the be-all-end-all if it means your entire brand is crippled by the move. PS3 price drops cost Sony billions but it was still the right call because otherwise the entire Playstation brand might've been lost. had the PS3 flopped, and Wii U is selling far, far worse than the PS3 ever did. It's already ruined the entire Wii brand, what's to stop it from hurting Nintendo overall? Virtual Boy was a footnote because Nintendo never aggressively supported it, they can't play Wii U off the same way.
 
L

Log4Girlz

Member
Jackson said:
Trust me. I want the WiiU to sell well more than all of you combined. :)

But the OP's comment about how selling at more of less is bad I disagree with. They should price drop this holiday. Big fat price cut combined with titles could boost sales like the 3DS.
Click to expand...

Yeah sure you do bro, talk to me when you've developed a game for the system.
















oh wait
 
D

danielcw

Member
When you buy a WiiU, you aren't just paying for the tech, you are also paying for the staff and the support.

How much money does Nintendo need to just exist, to pay it's current staff?
How much money do they have to spend on marketing and other external companies?

A relevant portion of that money has to come from the WiiU's profits.


freefornow said:
Price cut would make sense to me as a consumer.
Consumers don't care if the company is making a loss on what they sell.
Click to expand...

As a consumer I care, that the product I get has value. I need a healthy Nintendo to get games as a value for my WiiU.
 
S

Sendou

Member
danielcw said:
When you buy a WiiU, you aren't just paying for the tech, you are also paying for the staff and the support.

How much money does Nintendo need to just exist, to pay it's current staff?
How much money do they have to spend on marketing and other external companies?

A relevant portion of that money has to come from the WiiU's profits.




As a consumer I care, that the product I get has value. I need a healthy Nintendo to get games as a value for my WiiU.
Click to expand...

You're thinking way too much about this. Nintendo makes most of its profits from license fees and selling software anyway. Can't sell software to folks that don't have your machine. You get that machine to more folks by lowering the price and then you can do your main business that is selling software.

As far as price drop goes I think October could work nicely. Wind Waker HD is their first bigger release of the fall and I think they should be able to drop the price to a competitive level before PS4 and XBONE launches. I'm little afraid that they might hold up until Mario Kart 8 to do anything and it might be too late by then. Nintendo needs to man up and realize that they once again fucked over their early adopters and will continue to do so until the price is dropped.
 
T

tci

Member
What is the point of a price cut when there is nothing to play on it? Games = value

Since getting the Wii U last year, I haven't bought a single game (apart from two launch games). And the only one I care for now is the Wind Waker remake. Which is all kinds of sad.
 
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