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Reggie: Wii U becomes profitable with just 1 game purchase

Teletraan1

Banned
I am glad we live in a time when power consumption and manufacturer profitability is more important than the product we end up with.
 
Soooo, since we're all complaining about the Wii U having low numbers and fewer gigaflops and, I guess, less Pikmin (meaning it's like a Raditz) I I thought I'd throw out some useless anecdotes.

My parents want a Wii U. My parents aren't like the other anecdotal parents I hear about since they have a Wii and play it pretty much every day. And now they want a Wii U. And they will buy at least 5 games for the thing when they get one, and probably more later.

So my parents will be responsible for some of Nintendo's impending profits eventually.
 
I am glad we live in a time when power consumption and manufacturer profitability is more important than the product we end up with.

I'm glad we still live in the 90's where mass over consumption by consumers trump worries about the environment or where products they'll want tomorrow will come from.

See I can hyperbole too~
 
Gamepad is cheap.

Yeah, that's why Nintendo isn't selling them yet, and when they do they will charge ¥13,400 (probably $150 US when sold here), because they are so cheap and easy to make :p

First off, the thing's got a custom Broadcom chip in it using new technology designed specifically for the Wii U. Second, it's got *more* in it than a $200 iPod Touch, with a larger screen. And third, hardware costs always include their research and development, which is one of the biggest reasons they make more money over time, because they eventually pay that off. And the Wii U Gamepad had one hell of an expensive R&D, because of the need to get the latency down to under one frame, and keep the latency of the controller's camera under 2 frames.
 

Takao

Banned
The Wii wasn't that way, so why would the Wii U be? I'm actually on my third Wii, and I've never lost any of my Wiiware or VC games. Lost my saves once, that sucked.

I don't own a Wii U, but I do own a Wii and a 3DS. I don't usually buy anything from Nintendo's download stores because I don't like the fact content is tied to hardware. So I'm a bit bewildered at the Nintendo Network shenanigans going on right now.
 
I don't own a Wii U, but I do own a Wii and a 3DS. I don't usually buy anything from Nintendo's download stores because I don't like the fact content is tied to hardware. So I'm a bit bewildered at the Nintendo Network shenanigans going on right now.

Why don't you like that? The fact that you can never lose your purchases means it doesn't matter. Unless I guess you want to give games you download to your friends' consoles...
 
Yeah, that's why Nintendo isn't selling them yet, and when they do they will charge ¥13,400 (probably $150 US when sold here), because they are so cheap and easy to make :p First off, the thing's got a custom Broadcom chip in it using new technology. Second, it's got *more* in it than a $200 iPod Touch, with a larger screen. And third, hardware costs always include their research and development, which is one of the biggest reasons they make more money over time, because they eventually pay that off. And the Wii U Gamepad had one hell of an expensive R&D, because of the need to get the latency down to under one frame, and keep the latency of the controller's camera under 2 frames.

What do you mean by *more*? There's hardly any tech in there besides the streamer chip. Theres about 4-5x the power in a $150 Kindle Fire. The gamepad looks pretty cheaply made honestly. The screen is resistive of all things and not that good of a quality.

You can get a 7inch android tablet for that price also
 
Makes sense that they'd plan for immediate profit as gaming is their only real income as opposed to the other two who can soak up billions of losses for years thanks to their other profitable businesses. Ninty's nothing if not shrewd.
 

Log4Girlz

Member
At this point I'm wondering if it'd of been worth just scrapping the tablet and focusing on just making a bigger generational-leap 'Super' Wii. Emphasis on wondering since I don't own the system yet so I have no clue how the tablet feels and in a year's time I'll probably look back on this post and laugh at myself for suggesting Nintendo cut the system's main selling point.

Doesn't change my opinion that 1st party games and Wii-U exclusive 3rd party games like Rayman and ZombiU are going to be great, but stupid as hell after admitting the Wii suffered a huge 3rd party drought Nintendo let the same thing happen again.

Bleh, I actually like the idea of the tablet gamepad. I would have liked for them to either

A. Spend an extra 30-50 bucks on more advanced chips (which can buy a LOT in a console)

B. Spend a bit less per unit but instead target a TDP of 80 watts. That is still very efficient for an advanced home game console and would place it a very nice step ahead of the current gen, though it would mean a slightly larger console and fan. Again, over time this can be reduced. Though, it seems that since the gamecube days Nintendo doesn't do any die shrinks for their systems.
 

R1CHO

Member
What do you mean by *more*? There's hardly any tech in there besides the streamer chip. Theres about 4-5x the power in a $150 Kindle Fire. The gamepad looks pretty cheaply made honestly. The screen is resistive of all things and not that good of a quality.

You can get a 7inch android tablet for that price also

That tablet is bad though (the post is from 2010)

For 129€ here you can buy now:

7"1024x600 IPS capacitive+ 1GBRAM + Dual Core Cortex A9 1,6 GHz + GPU: Quad Core ARM Mali-400 + 8GB flash + wifin + hdmi + 4100mah .... Android tablets.

So yeah, i dont think that cheap screen and a streaming chip makes the gamepad crazy expensive.
 

Teletraan1

Banned
I'm glad we still live in the 90's where mass over consumption by consumers trump worries about the environment or where products they'll want tomorrow will come from.

See I can hyperbole too~

Dead world in 2 years if they went with a 125w system and people didn't have to put up with sup par games. Maximum Hyperbole.
 

Atcha

Member
Hard numbers? I'm curious as to how much profit they're going to make off those stand alone gamep
ads they're going to sell in Japan if the actual pad isn't the thing driving up the price.

Thats what i think, more than 60-70$ would be crazy talking.


Exactly.

We are in 2012.
A cheap LCD screen with all the features in the GamePad is not expensive.
You honestly think that you can compare a Gamepad with a tablet ( nexus or ipad ? ).

The GamePad is only used to receive the WiiU stream. It won't work by itself
( Example : store the current game in his ROm or anything else, lauch game or app without the WiiU ).

70$ max for a gamepad.
 

Atcha

Member
That tablet is bad though (the post is from 2010)

For 129€ here you can buy now:

7"1024x600 IPS capacitive+ 1GBRAM + Dual Core Cortex A9 1,6 GHz + GPU: Quad Core ARM Mali-400 + 8GB flash + wifin + hdmi + 4100mah .... Android tablets.

So yeah, i dont think that cheap screen and a streaming chip makes the gamepad crazy expensive.

That's Right.

Nintendo has concentrated his efforts to lower as much as possible the wiiU cost.
 

Noi

Member
Why don't you like that? The fact that you can never lose your purchases means it doesn't matter. Unless I guess you want to give games you download to your friends' consoles...

Are you joking? My hardware breaking/being stolen means I lost access to all the content on my account unless I send in that specific hardware in for repair. Hell, Nintendo don't even guarantee being able to save all the data/online info on your Wii/3DS when you send it in for repair. How the hell is that more convenient than having the content tied to an account, where I can simply get another piece of hardware and be on my merry way?
 

goldenpp72

Member
How is it that the company that made the Gamecube which beat the crap out of the ps2/DC and cost 200 bucks only a year or two later, and broke even or profited, unable to make a system released 7 years later at 350 bucks only the same power level and sold at a loss. It really boggles my mind, I understand inflation and the exchange rate issue, but come on.
 

Atcha

Member
How is it that the company that made the Gamecube which beat the crap out of the ps2/DC and cost 200 bucks only a yearor two later, and broke even or profited, unable to make a system released 7 years later at 350 bucks only the same power level and sold at a loss. It really boggles my mind, I understand inflation and the exchange rate issue, but come on.


Touché !
 

Dead Man

Member
Why don't you like that? The fact that you can never lose your purchases means it doesn't matter. Unless I guess you want to give games you download to your friends' consoles...

619d6315f5806b69aa4fd6b418d91bea7930b4bc_m.gif
 
Are you joking? My hardware breaking/being stolen means I lost access to all the content on my account unless I send in that specific hardware in for repair. Hell, Nintendo don't even guarantee being able to save all the data/online info on your Wii/3DS when you send it in for repair. How the hell is that more convenient than having the content tied to an account, where I can simply get another piece of hardware and be on my merry way?

Oh, so the only reason you hate it is because it's inconvenient, because you have to send your broken thing into Nintendo. Oh darn. You would be rather rich or lazy or ignorant to just buy another piece of hardware rather than sending the broken one in - even discounting the fact that Nintendo will restore all of your purchases on the replacement device (and can always do so regardless of the condition of the device, since they *do* have an account with all your purchases on it), they will charge FAR less than retail even if you are out of warranty. For example, at launch, the Wii's out-of-warranty replacement cost from Nintendo was $75 (I know this because my launch Wii had issues with its DVD drive and I had to replace it, and the invoice had the price, which was then canceled out due to warranty).
 

bakedpony

Member
Lol, calm down, I'm sure they'll work something out. People will whine about it and they'll fix it. It wouldn't be logic to leave things like that anyway.

What about those who lose their console (broken, stolen, etc...) before they work this issue?
 

Seik

Banned
What about those who lose their console (broken, stolen, etc...) before they work this issue?

If the console breaks, they can send it back to Nintendo, they have the ''If you ask nicely, we'll do it for free'' policy. Even if it got stolen I'm sure something could be worked out with the CS at Nintendo. I'm confident the issue will be addressed very soon.

When my Wii had problems reading discs three years ago they fixed it for free, and I didn't even needed any proof of purchase. If that's not impeccable customer service then I ask you what is. So yeah, I trust them.

Tye're fucked and will have to buy a new console again, at double the price because incompetent and greedy Nintendo. Disgusting company.

:lol
 
R&D isn't in this equation. He's talking profit per unit sold.

And R&D is always figured into that. Do you really think a PS3's BOM was over $700 at launch? Kinect was sold at a loss for $150, do you think it cost $150 for an IR light behind a filter, a low-res visual camera and a low-res IR camera (remember that Kinect was originally going to have a CPU in it, but they dropped that)? Companies always include development costs when they make these statements, the way they figure it out is kinda like credit card interest, where the dev cost is considered a large part of the device cost at first, and over time they lower and lower it until they've decided that the development cost has been paid off. Which is one of the big reasons devices get cheaper to manufacture over time.
 

nickcv

Member
And R&D is always figured into that. Do you really think a PS3's BOM was over $700 at launch? Kinect was sold at a loss for $150, do you think it cost $150 for an IR light behind a filter, a low-res visual camera and a low-res IR camera (remember that Kinect was originally going to have a CPU in it, but they dropped that)? Companies always include development costs when they make these statements, the way they figure it out is kinda like credit card interest, where the dev cost is considered a large part of the device cost at first, and over time they lower and lower it until they've decided that the development cost has been paid off. Which is one of the big reasons devices get cheaper to manufacture over time.

Aren't you talking about production costs, setting up production lines etc? R&D costs are written off way before that, they weren't telling investors that the 3DS wasn't yet profitable because of paying back some imaginary loan over the years.

I mean, you're saying that Reggie's statement means that they've already paid off the R&D budget on the first days of U.S. sales?? He'd have no way of knowing how profitable it will be for a while when you include the last few years of dev costs.
 

goomba

Banned
How is it that the company that made the Gamecube which beat the crap out of the ps2/DC and cost 200 bucks only a yearor two later, and broke even or profited, unable to make a system released 7 years later at 350 bucks only the same power level and sold at a loss. It really boggles my mind, I understand inflation and the exchange rate issue, but come on.

Prior to the release of the GameCube, it was mocked by some for its specs. having less main ram than the ps2 and the official "6 to 12 million polygons a second" ( vs 66 and 80 odd million for Xbox and playstation 2). Gamecube ports from playstation 2 were usually shitty and inferior.

Yet the games built specifically for it shined bright. Rogue leader , fzero gx , re4 revealed a very capable console.
 
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