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[TomServo]

To those criticizing the amatuer financial analysis... well, obviously Nintendo's own analysis was flawed. They've painted themselves into a corner where the price they're asking isn't what the market will bear, at least in terms of the volume they're looking for.

I know that technically they're not, but in Nintendo's position I'd view my negative margin on unit sales as sunk costs. If they can't get their cost down then the money is as good as spent. The decision then turns how much of a hit do you take in an attempt to move unit sales back to their original target.

That's where the reluctance to drop price comes from, IMO; if their original model of price vs. sales was flawed, can they trust future guidance without reworking the model? I know I would at least want to understand why my sales were so far below projections before I rushed into another decision regarding price.

BTW, not all of us are amateurs

 

[The Abominable Snowman]

Still comes off as a bad investment to me (If I didn't own one already)

Only thing that could save the Wii U is a big number of Nintendo catalog games. Coming at a faster pace than what Nintendo announced at E3. That may or may not be impossible now until late 2014, but thats what the Wii U needs.

 

[Burai]

It's not wrong but somehow you made it sound like there's objectively nothing to play on the system. I mean you are probably in the minority if you have no interest in platformers, action games, whatever the tell Pikmin is, arcade racing, JRPG's or fighting games. And as such I have to wonder why did you a) buy the system in the first place b) come to complain about the lack of games to a thread ultimately about Wii U sales performance where your own narrow tastes are to blame?

Conversely you need pretty narrow taste to enjoy the Wii U at all. This is why lacking third parties is the death blow. There are a ton of genres with little-zero representation beyond rushed, unfinished launch games that Nintendo can't and won't be able to fill.

Even if you're a staunch Nintendo fanboy there's no guarantee you're going to want everything they have and are putting out. I'd rather have F-Zero than Pikmin. I'd rather have Metroid than Donkey Kong for example.

(I now see, that I should try to improve my way to make this point, and my initial was is very flawed)
I am trying to say that people who need a low pricepoint to be convinced are probably not hte people who will buy games for it anyway.

Dropping a price alone does not help, neither short term nor long term.

Whichever way you slice it, the Wii U is $100 more expensive than the Wii was at launch with a far less appealing selling point and no Wii Sports-esque game changer in sight.

We may have to just accept that the Wii U is done.

 

[Sendou]

Conversely you need pretty narrow taste to enjoy the Wii U at all. This is why lacking third parties is the death blow. There are a ton of genres with little-zero representation beyond rushed, unfinished launch games that Nintendo can't and won't be able to fill.

Yeah well I'd say that your taste in gaming is very specialized if you really can't find anything interesting on the system (that we know of or what is out) after launch except Wind Waker HD. I haven't played rushed games on Wii U. Wonderful 101 is maybe closest to that but I'll reserve my judgement until I have played it more.

The thing is every single genre doesn't need to be represented on Wii U. If you absolutely love FPS's for example chances are no matter what Nintendo does your system of choice wouldn't be Wii U.

 

[sphagnum]

I just can't believe how shocking their output is these days. Where are the games Nintendo? What exactly have their teams being doing with the last 2 years?

Saving the 3DS and struggling with HD,

 

[biggersmaller]

There are multiple problems at Nintendo that contribute to a failing Wii U.

One issue is their apparent belief that the MSRP is not too high.

Well guess what? The price is too damn high. $199.99 should be the price now and should have launched at that price last year.

Outside of price, an expensive pad shouldn't have been included without a mega proof of concept game. Nintendo also needs more games featuring its most popular characters that aren't just retreading past games, it was terribly named, and there was a lack of marketing - but again - the price is too high for current generation tech launching at the advent of new tech from MS/Sony.

Now, how would a totally failed Wii U impact the bottom line at Nintendo? More than NeoGaf thinks.

A war chest is great, however Nintendo will swallow billions in future R&D and software development for follow-up hardware, with additional losses from another (minimum) two years of Wii U support. Evidence of disorganized/arrogant leaders, coupled with an aging fan base leaving behind young mobile gamers content with phone gaming, also doesn't help.

 

[ElectricKaibutsu]

There are multiple problems at Nintendo that contribute to a failing Wii U.

One issue is their apparent belief that the MSRP is not too high.

Well guess what? The price is too damn high. $199.99 should be the price now and should have launched at that price last year.

Outside of price, an expensive pad shouldn't have been included without a mega proof of concept game. Nintendo also needs more games featuring its most popular characters that aren't just retreading past games, it was terribly named, and there was a lack of marketing - but again - the price is too high for current generation tech launching at the advent of new tech from MS/Sony.

Now, how would a totally failed Wii U impact the bottom line at Nintendo? More than NeoGaf thinks.

A war chest is great, however Nintendo will swallow billions in future R&D and software development for follow-up hardware, with additional losses from another (minimum) two years of Wii U support. Evidence of disorganized/arrogant leaders, coupled with an aging fan base leaving behind young mobile gamers content with phone gaming, also doesn't help.

$50 cheaper than the Wii? That would be unlikely. If they cut out the gamepad and added a Wiimote + + then they could have hit $250 which would have been reasonable.

 

[big youth]

I wonder if they would have already dropped the price if there was a higher profile game released. Pikmin 3 isn't enough. I think this because I've talked with numerous retail employees and saw how desperate the sales situation is. If games don't increase hardware sales significantly in the next couple months I fully expect a price drop this year, financial considerations be damned.

 

[witchedwiz]

To those criticizing the amatuer financial analysis... well, obviously Nintendo's own analysis was flawed. They've painted themselves into a corner where the price they're asking isn't what the market will bear, at least in terms of the volume they're looking for.

I know that technically they're not, but in Nintendo's position I'd view my negative margin on unit sales as sunk costs. If they can't get their cost down then the money is as good as spent. The decision then turns how much of a hit do you take in an attempt to move unit sales back to their original target.

That's where the reluctance to drop price comes from, IMO; if their original model of price vs. sales was flawed, can they trust future guidance without reworking the model? I know I would at least want to understand why my sales were so far below projections before I rushed into another decision regarding price.

BTW, not all of us are amateurs

Correct, but then again depending on the sales projection difference with the current eofy projection, i would
1) shit in my own pants if i was One of the analysts responsible for that planning
2) ask an external and strong directional consultino firm for a new estimate plan, discuss that plan internally and then go forward..
What nintendo (or nintendo analysts) is failing to realize is that the further along they go with the difference in terms of sales expected/sales projection/effective sales quota, the harsher will be to recoup the losses..
If the project was a bit smaller a serious decision would be reduce the lifeline of the project till they reach an affordable loss (board of director say hi... There would be a LOT of blood if this route gets picked), but given how much nintendo want to force its presence in the home console market they'll have to rework their strategy and this can as well match an affordable price cut on the mrrp..

Anyway given how hard wiiu failed after wii, some heads are bound to /bow and "please understand" a LOT...

 

[Massa]

Sorry if this was confusing, I've been typing this (and double checking my numbers) for almost two hours now, just to make a thread that is essentially "tl;dr Nintendo would lose a ton of money they'd never make back by cutting the price $100"

They'd make money back on the consumers that buy a Wii U in 2014 and beyond. If things keep going as they are they won't have that possibility.

 

[LeeRoyBrown]

Last gen I got a Wii because I wanted the benefit of another console and some Nintendo exclusives.

I'm not falling for that shit again.

This system needs to be cut to $99 or the next Zelda needs to be the greatest thing since sliced bread.

 

[Mondriaan]

Has anyone calculated what the attach rate would have to be on a Wii U that's $100 cheaper in order for Nintendo to break even?

Buying market share in the form of customers that you will never make money on is probably a losing proposition.

 

[danielcw]

They'd make money back on the consumers that buy a Wii U in 2014 and beyond.

How do you know?
And how much cut they cut the price to still make the money back?

 

[JoshuaJSlone]

-Total attach rate for Wii, DS, 3DS, & Wii U is 6.65 games/console (1929.05m software/290.06m hardware)

At the average attach rate of 6.65 units/console, Nintendo would likely never make this money back.

Using an attach rate that averages in handhelds and machines whose rates are still growing creates a bit of a lowball compared to the home console reality. Ratios by shipments
NES: 8.1
SNES: 7.7
N64: 6.8
GCN: 9.6
Wii: 8.7

 

[LOCK]

This was a good analysis in a bubble. However, Nintendo as a company produces more than one product.

Nintendo expects sales this fiscal year to be:

18m 3DS's with 80m software units
0 DS's with 10m software units
2m Wii's with 20m software units
9m Wii U's with 38m software units

I expect, and probably so does Nintendo, for the 3DS to over perform in software sales this fiscal year. The DS and Wii sales is just basic profit at this point, especially the software. I don't see how Nintendo doesn't reach their 1b operating income goal this fiscal year, ignoring the Wii U altogether. The money they should make off of Wii U software sales should be enough to allow for a price cut to occur.

The only problem is Nintendo's stubbornness.

 

[jmls1121]

Last gen I got a Wii because I wanted the benefit of another console and some Nintendo exclusives.

I'm not falling for that shit again.

This system needs to be cut to $99 or the next Zelda needs to be the greatest thing since sliced bread.

These posts are ridiculous and should be bannable offenses. It comes from a similar place as port begging.

"drrr, I would only buy a WiiU if it was $10 and offered free blowjobs"

 

[schuelma]

That may all be true, but the reality of the situation worldwide is that Nintendo is in danger of losing retail space and permanently losing what semblance of 3rd party support they have.

If they are not aggressive before PS4/XBone really get going production and software wise, they risk a complete and total failure.

 

[Snowden's Secret]

Using an attach rate that averages in handhelds and machines whose rates are still growing creates a bit of a lowball compared to the home console reality. Ratios by shipments
NES: 8.1
SNES: 7.7
N64: 6.8
GCN: 9.6
Wii: 8.7

I considered that, but for simplicity's sake I assumed that while attach rates go up as consoles age, this is offset by price drops (which makes sense that you would buy more software at a lower price point). Since Nintendo would have to sell even more games at a lower price point to make up the loss I considered it a wash.

Though this does bring up the point that consumers that require a price drop prior to jumping in are less likely to buy many full priced games anyway since they are price sensitive, so Nintendo probably has to sell well over the 7 games to break even anyway.

 

[TomServo]

Correct, but then again depending on the sales projection difference with the current eofy projection, i would
1) shit in my own pants if i was One of the analysts responsible for that planning

I would not want to be one of those folks. Especially if there was no contingency to back off of the $350 price in short order if sales weren't there.

Judging by Nintendo's reluctance to drop the price, it's fair to say no such contingency was in place.

 

[Tricky I Shadow]

Wii U =

Spoiler

Dont cry for me, Im already dead

LOL.

 

[JimmyRustler]

For all I care they could sell it for 50 EUR, I still would not buy it. There are simply no games on that thing - which is the real problem for the Wii U.

 

[Steve Youngblood]

Especially if we're concerned that the market is so price sensitive as to demand a steep price cut, it doesn't make sense to compare the top tier Wii U versus the low end PS4.

Well, to me, the issue isn't really price in and of itself. But price is one factor that fuels demand. I think the problem is that there's a lot going against the Wii U right now. Now, I don't want to call for Nintendo to outright pull the plug on the Wii U -- as I think a lot of that analysis is silly (and Nintendo fans accusing people of saying that when they haven't is even sillier) -- but I often see a lot of the more optimistic out there that basically think that the current situation is easily corrected with game releases. There's this feeling that everything is on track, and I just personally don't see it.

When I say the Wii U needs a price cut, I don't suggest that because I think that a $300 Wii U or a $250 Wii U will do gangbusters. I say it because I think turning the tide requires everything in their arsenal. Marketing has been a problem. They need a big marketing campaign. Lack of high profile games has been a problem. They're trying to correct it, but -- in my opinion -- they still aren't getting titles out fast enough. And price is also an issue.

As the sales data continued coming in painting the Wii U as a complete disaster, I still hadn't given up on the notion that Nintendo could possibly get the ship back on course. However, my idea of what that would look like involved the games they've currently got being out for the holidays, but also Mario Kart and a price drop. Coupled with an ad blitz, I figured that might be an aggressive enough to make a solid second impression on a market that might be looking to get either of the new products, or had left in favor of gaming devices entirely.

As is, what they appear to be doing just appears to be a modest effort. Now, I can understand the analysis that the numbers just don't allow for a price drop. Maybe the losses are too great, as argued. I can understand that. But that doesn't mean that the product doesn't need one. And trying to factor in hidden cost analysis vis a vis the PS4 isn't going to win people over.

 

[Burai]

Yeah well I'd say that your taste in gaming is very specialized if you really can't find anything interesting on the system (that we know of or what is out) after launch except Wind Waker HD. I haven't played rushed games on Wii U. Wonderful 101 is maybe closest to that but I'll reserve my judgement until I have played it more.

The thing is every single genre doesn't need to be represented on Wii U. If you absolutely love FPS's for example chances are no matter what Nintendo does your system of choice wouldn't be Wii U.

The problem is how far that extends. If you like FPS Wii U isn't for you. If you like sports games Wii U isn't for you. If you like open world games Wii U isn't for you. If you like racing games Wii U isn't for you. Fighting games? Not for you. RPGs? Not for you.

You can say that my taste is "very specialised" but I'd go as far as saying my taste isn't specialised enough. The Wii U is like subscribing to cable TV but only gettin Cartoon Network. If you love CN, that's awesome but sometimes I want to watch something else.

The Wii U is the very definition of a secondary console but it lacks the impulse price that justifies such a limited range of software. $350 is proper console money but what's out and on the horizon isn't a proper console lineup.

 

[LeeRoyBrown]

These posts are ridiculous and should be bannable offenses. It comes from a similar place as port begging.

"drrr, I would only buy a WiiU if it was $10 and offered free blowjobs"

Huh?

EDIT: How do you get port begging from that?

 

[emcyroyale]

As a of Nintendo, I have to say the only thing that is stopping my from buy a Wii U is the lack of quality first party game. When they start releasing more first parties and build a decent library, then I'll put my money on the table. A console is meaningless without the software to back it up.

 

[monome]

Well, to me, the issue isn't really price in and of itself. But price is one factor that fuels demand. I think the problem is that there's a lot going against the Wii U right now. Now, I don't want to call for Nintendo to outright pull the plug on the Wii U -- as I think a lot of that analysis is silly (and Nintendo fans accusing people of saying that when they haven't is even sillier) -- but I often see a lot of the more optimistic out there that basically think that the current situation is easily corrected with game releases. There's this feeling that everything is on track, and I just personally don't see it.

When I say the Wii U needs a price cut, I don't suggest that because I think that a $300 Wii U or a $250 Wii U will do gangbusters. I say it because I think turning the tide requires everything in their arsenal. Marketing has been a problem. They need a big marketing campaign. Lack of high profile games has been a problem. They're trying to correct it, but -- in my opinion -- they still aren't getting titles out fast enough. And price is also an issue.

As the sales data continued coming in painting the Wii U as a complete disaster, I still hadn't given up on the notion that Nintendo could possibly get the ship back on course. However, my idea of what that would look like involved the games they've currently got being out for the holidays, but also Mario Kart and a price drop. Coupled with an ad blitz, I figured that might be an aggressive enough to make a solid second impression on a market that might be looking to get either of the new products, or had left in favor of gaming devices entirely.

As is, what they appear to be doing just appears to be a modest effort. Now, I can understand the analysis that the numbers just don't allow for a price drop. Maybe the losses are too great, as argued. I can understand that. But that doesn't mean that the product doesn't need one. And trying to factor in hidden cost analysis vis a vis the PS4 isn't going to win people over.

PS4/X1 are not out.
they won't be easy to find in the next coming months.

why should Nintendo cut its price?
if parents are looking for a console for their kids, WiiU still is way cheaper and easier to get than PS4/X1. and that 1st party games reputation.

other people? well if neither W101/Bayo2/X convince you to get a WiiU even for 50$ more than you'd like...then you're better off without a wiiu. no need to take a loss on hardware for you.

 

[jvm]

The tie ratios for the consoles might be worth considering (as of March 2013):

N64: 6.8 units/console
GC: 9.6 units/console
Wii: 8.7 units/console

These are over the entire lifetimes of dead consoles, but still higher than the figures quoted in the OP. Even the N64 was higher than the 6.65 units/console used there. And the margin will be somewhat higher, as noted, because of digital. Worth adjusting, perhaps, to see how that works out.

 

[PotionBleue]

Has anyone calculated what the attach rate would have to be on a Wii U that's $100 cheaper in order for Nintendo to break even?

Buying market share in the form of customers that you will never make money on is probably a losing proposition.

Isn't there an estimation of this in the OP?

 

[Starwolf_UK]

I was going to say the OP is making an assumption on the loss from a quote that is over 8 months old and that surely the parts in the Wii U are cheaper. Then I thought a little as I read the thread and...

A price cut would also have to hit existing stock too (out of Nintendo's pocket) and there is a lot of unsold stock from launch at retail (especially in Europe, didn't it ship like 10,000 units in Q1) which effectively means the parts being cheaper is irrelevant.

Also there is this...

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.

I was not aware of this. Nintendo better seek out cheap plastic for the shell then...or make the gamepad screen as big as a 3DS...maybe also not include a power supply...panic mode becomes desperate mode.

Spoiler

Just give me the self assembly version...

They don't have to be super aggressive with a $100 price cut when a $50 dollar price drop would be enough to encourage more purchases. I think they have to distance themselves further from PS4's price tag, or they're really going to feel it.

They've tested this multiple times in Europe (as in retailer cuts prices and gets rebate in the form of inventory up to x units). The first example was with Zavvi. It took Zavvi about 4 days to sell around 250 units. This was some months ago so maybe we will see it again when Mario Kart comes out (but the risk of doing it often is people will want to wait for the deal).

The fact HMV are still selling the ZombiU bundle for £350 is hilarious. And retailers set prices here, so make of that what you will.

Maybe when NOE did its price cut test at HMV (assuming it was Nintendo driven) they should have made the Zombi U bundle £200 rather than Deluxe+Zombi U=£200 (difference with the bundles is Zombi U comes with a pro controller and no Nintendoland).

 

[jmls1121]

Would a price cut be better for consumers? Of course.
Is the price going to hurt sales this holiday? Yes.

But Nintendo is probably right not to lower the price at this time. This fiscal year is all about profitability for Nintendo, riding the wave of 3DS, Pokemon, Monster Hunter 4, Animal Crossing, etc.

Basically, for this year, they are going with the Gamecube/GB Advance strategy. Make their money on handhelds and mitigate any losses from the console division.

The only question is whether Nintendo can preserve their retail space presence until the likely price drop with MK8 next Spring.

 

[Bl4ckSunsh1n3]

It just needs games. The price isn't the issue on it. The lack of a good library is.

 

[Ludist210]

I'm a Wii U owner. I bought the Deluxe model on launch day. It should be cheaper ($300 for the Deluxe model is not a bad price at all) and it needs a stronger library of games (which it will soon be getting). It needs both.

A price cut will help, but it's not the end-all solution to the Wii U woes.

 

[LuchaShaq]

To me a price cut wouldn't make sense because even if the system was literally free, there isn't anything I would bother to play on it even if all the games were free as well.

 

[michaelius]

why should Nintendo cut its price?
if parents are looking for a console for their kids, WiiU still is way cheaper and easier to get than PS4/X1. and that 1st party games reputation.

If they were looking for PS4/X1 in the first place then Nintendo kiddy library isn't any any argument.
And those people can still buy X360/PS3 as much cheaper alternative with tons more games.

 

[The Abominable Snowman]

It just needs games. The price isn't the issue on it. The lack of a large library is.

But it would need a different large library than the PS3 and 360/PS4 and Xbox One.

I.E. lots and lots of Nintendo games and exclusives, and large scale ones at that

Which they seem to have trouble producing in a timely manner

 

[Recall]

This obsession with jumping on the price being the thing that is holding back the console needs to stop.

A console with very few games and no clear distinction making sure that the general public doesnt know it is a whole new console, is the cause for the problem. Blaming the price or thinking the price will instantly fix it shows that you don't understand the whole issue.

 

[XenodudeX]

I don't think they'll drop the price honestly. What they will probably do is let this holiday play out. The Wii U will obviously see a bump in sales big or small. But if sales fall of a cliff again like in the beginning of this year then they will need to drop the price. And if that doesn't work, I guess they'll keep it on the market for another 4 years then release another home console with comparable specs of the xbox one or PS4.

 

[jmls1121]

This obsession with jumping on the price being the thing that is holding back the console needs to stop.

A console with very few games and no clear distinction making sure that the general public doesnt know it is a whole new console, is the cause for the problem. Blaming the price or thinking the price will instantly fix it shows that you don't understand the whole issue.

I agree. Its not going to cause a clamor for the system. Look at the 3DS as recent evidence. Price drop plus the MK7 3DLand led to good holiday sales. Then the sales got bad again until more games were released.

Some Nintendo official from Europe cited this as evidence that the price drop was not the driving force behind the turnaround of the 3DS. While I do think it had some effect, I do not think it was the primary cause.

 

[Steve Youngblood]

PS4/X1 are not out.
they won't be easy to find in the next coming months.

why should Nintendo cut its price?
if parents are looking for a console for their kids, WiiU still is way cheaper and easier to get than PS4/X1. and that 1st party games reputation.

other people? well if neither W101/Bayo2/X convince you to get a WiiU even for 50$ more than you'd like...then you're better off without a wiiu. no need to take a loss on hardware for you.

Well, for starters, my point isn't predicated at all on the PS4/Xbox One being its direct competition that it has to beat. Personally, I'm not all that interested in doing a value analysis of the Deluxe Wii U versus the PS4, except to note that a $400 PS4 SKU certainly doesn't help make a strong case for the Wii U. Other than that, it's not just a matter of beating the next gen machines. There's still last-gen machines. There's still tablets, and smart phones, and iPod Touches out there. And at the end of the day, the biggest reason to be skeptical about the Wii U can be achieved by just looking at current data. There's next to no demand for the product right now.

And I know, I know. "It just needs games!" And some good titles are coming. But is it enough? I guess we'll see. Me? I don't think so. Again, I argue for the price drop not because I think it's a magic bullet solution that will surely get people on board, but because I think they need to employ a strategy of throwing everything and the kitchen sink at the problem. As is, I think they're being too conservative.

Edit: Also, that last bit about being better off without a Wii U if W101/Bayo2/X can't convince you to hop on board for more than you want to spend is just nauseatingly phrased. I'm not saying these aren't going to be great games, but that statement just kind of crosses over reasonable analysis into deluded fan land. "If these hot, must have titles can't convince you, then you don't deserve a Wii U!"

 

[Pepboy]

I think what OP forgets in analysis is that "costs" are not just hardware costs. It also takes a lot of resources to develop games. I doubt many games developed for the WiiU have made back much money, and a lot have lost due to the small WiiU install base. Nintendo titles may be "evergreens" but if the install base does not pick up, they may stay in the red, or make minuscule profits. Thus taking a price cut is not just "more loss" but shifting the loss from the future to the present.

That being said, I also don't see a price cut this holiday season, but extensive bundling as OP mention. I suspect 32 GB machine + Nintendo Land + other title + 2 free WiiU eshop games (maybe 1 virtual console and something like Little Inferno) for $350? As a result, I expect to see some retailers having specials on the non-holiday versions (~$300 price range for deluxe). In coordination with a big marketing push around late October. The reason being that PS4 and XBone will likely both be supply constrained, no matter what the cost of the Nintendo machine. About 2/3rds of America won't even know the new machines are out yet, or understand why they need them, as it takes time for that information to culturally disseminate. Therefore, Nintendo does not need to compete directly with PS4 or XBone this holiday on price.

This will allow for Nintendo to look at their holiday sales and adjust strategy based on that. If it fails to take off, we can probably expect a $50-$75 price cut of the deluxe version in April, after the fiscal year. If it does admirably, maybe the price cut comes in September 2014. If it completely bombs, then I suspect we will have a changing of the guard, with Mr. Iwata taking on a different role, and then anything can happen.

 

[TDLink]

The problem is how far that extends. If you like FPS Wii U isn't for you. If you like sports games Wii U isn't for you. If you like open world games Wii U isn't for you. If you like racing games Wii U isn't for you. Fighting games? Not for you. RPGs? Not for you.

You can say that my taste is "very specialised" but I'd go as far as saying my taste isn't specialised enough. The Wii U is like subscribing to cable TV but only gettin Cartoon Network. If you love CN, that's awesome but sometimes I want to watch something else.

The Wii U is the very definition of a secondary console but it lacks the impulse price that justifies such a limited range of software. $350 is proper console money but what's out and on the horizon isn't a proper console lineup.

This is slightly disingenuous as the Wii U has not even been out for a year. By the end of this year Wii U will have a healthy number of games (good games at that) in all of those genres other than fighters (just tekken tag 2 and injustice). It already has many of them. CODs, ZombiU, Sonic racing Transformed, NFS, Watch Dogs, AC4, Batman Origins, and Lego City I think all qualify in those genres.

Nintendo is lacking in their first party offerings (for now) but their upcoming lineup isn't bad and the only big third party stuff they are really missing out on are EA's sports games/battlefield.

 

[KungFucius]

I don't understand why they don't do 2 things and then try the price cut.

1. Include Nintendoland with Basic and DX possibly as a download
2. Make DX a rolling pack-in product. I.e. include Zelda, NSMBU, SM3DW, etc ( plus Nland)
3. Test this for 1 quarter and if if does not work, cut the price 50 bucks

Nintendoland can serve as Wiisports did and provide some added perception of value. This game is mostly why people are buying the DX over the basic so use it to help lure parents in when they are Xmas shopping on all products. The DX unit could conceivably just ship with a sticker on it saying free download of Zelda, Mario, etc.

 

[DragonSworne]

I don't understand why they don't do 2 things and then try the price cut.

1. Include Nintendoland with Basic and DX possibly as a download
2. Make DX a rolling pack-in product. I.e. include Zelda, NSMBU, SM3DW, etc ( plus Nland)
3. Test this for 1 quarter and if if does not work, cut the price 50 bucks

The less Nintendo has to do with Nintendoland the better.

Nintendoland single handily put the Wii U in the position it is in right now. It is the title that made that signal to ever press and games journalist in the world to not cover the Wii U and focus on Sony's and Microsoft's next systems.

The reveal of Nintendoland was oh so bad.

 

[witchedwiz]

PS4/X1 are not out.
they won't be easy to find in the next coming months.

why should Nintendo cut its price?
if parents are looking for a console for their kids, WiiU still is way cheaper and easier to get than PS4/X1. and that 1st party games reputation.

other people? well if neither W101/Bayo2/X convince you to get a WiiU even for 50$ more than you'd like...then you're better off without a wiiu. no need to take a loss on hardware for you.

Uhm...
By crossing the 300 price tag with premium sku, nintendo implicitly stepped into the 300 price range.. So yeah, nintendo was forced into that spot by Sony aggressive pricing..
You have to consider consumers perspective with all the antics and the lolwut..
If you ask random people mostly would agree that 300-400 same price range, 300-450 is not..
So comparatively speaking ps4 and wiiu sits on the same price range as far as mrrp is concerned..
By avoiding the cut nintendo not only played its own console in a tightspot, but gave a leverage to ps4 as being cheaper compared to his technologically similar competitor (xboned)..
A re launch of the wiiu that tries to boost the console market value can be still attained but at times the medicine is even bitter than the pain... For example they could put sku premium at 250 and add a strong fp title (fp not only because it's their best-selling software, but because they can keep the loss at a minimum by sharing the loss of ninhw with ninsw service line) and market that as a relaunch branding, much like they did with 3ds they'd need a small ambassador program... And i'm not just saying this from an end-user perspective, but from an analyst perspective... It will be painful due to manifacturing still high (produttive cycle still young) in the sky, but in the end it will be' a choice between early plug or capitalize the losses.. Imho...

 

[TAS]

Price cut is not the answer. Best thing they could do right now is drop the lame and confusing U and rename the console to Wii2. That will eliminate all this confusion within the casual gaming community and automatically make the console more appealing to the masses. Next, they need to implement a blitzkrieg advertising campaign showing off the Wii2 with its completely original controller and upcoming games. Highlight asymmetrical gameplay. On top of that, they need to emphasize that Wii2 is the ONLY next gen console with native backwards compatibility. That increases perceived value in the eyes of the consumer.I have no doubt these two changes alone would have a much greater impact than a price cut ever would.

 

[Snowden's Secret]

Last gen I got a Wii because I wanted the benefit of another console and some Nintendo exclusives.

I'm not falling for that shit again.

This system needs to be cut to $99 or the next Zelda needs to be the greatest thing since sliced bread.

See, it would be better for Nintendo for you to never buy a Wii U at all than it would be to sell you one at that price. They'd never make back the loss unless you ended up buying like 15 full price games (which seems unlikely given the rest of your post).

I used to work at Best Buy. We sold computers at a loss to get people in the door, but (theoretically) would make up the loss on accessories and services. Management actively encouraged us to not close a sale if the customer wasn't going to buy any of the additional upcharges because we'd just be losing money. Employees would argue that it was good for the store either way, that selling them a cheap computer would create repeat business, but they missed the point that more than likely the repeat business would also be at a loss.

Loss leading hasn't worked out for Best Buy, either.

 

[coinoperatedboy]

Games>marketing>pricedrop.

In that order, and anyone who thinks otherwise is wrong.

 

[Mondriaan]

Isn't there an estimation of this in the OP?

Kind of/sort of. Attach rates are one thing, but there should be projections about how much money can be made.

Also, not all games are created equal in terms of what they earn Nintendo. I don't know if I see free-to-play and DLC making up the difference left from the expected average attach rate, though.

 

[TomServo]

Loss leading hasn't worked out for Best Buy, either.

That's because the value of those up sells wasn't worth nearly what Best Buy was asking for them.

I fight this battle with our sales execs constantly... too many take a simple view of pricing based on cost, when they need to focus on value pricing. Which goes back to the Wii U's problem - not enough customers perceive the platform to be a sufficient value at $350. They can either increase the perceived value (the "not enough games!" crowd), or they can lower the price until it aligns with current perceived value.

The risk to the first strategy is that it takes so long to reach the convergence of perceived value and price that the console has lost relevance.

 

[GenericUser]

end of november, the system will be beyond saving. By then, it just won't make any sense to buy a wiiU anymore. Sorry, don't have anything against the wiiu, but nintendo's strategy ways flawed, right from the get go.