• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Factory responsible for Wii U eDram to close within 2-3 years

BY2K

Membero Americo
Wait, it's closing in 2-3 years? But then Nintendo has plenty of time to stockpile the chips and find another factory to make them.

I mean, it's not like it was closing immediately.
 

Dang0

Member
Well, that's one crisis averted for now.

Now we just have to deal with all the other ones :p

I still love ya, Wii U
 

BY2K

Membero Americo
People that suggest Nintendo should drop the Wii U needs to wake up. The Wii U already cost at lot of R&D, dropping the Wii U to make another console now would just cost more R&D, which means the new console would have to sell fucking gangbusters to make up the R&D cost of not one but TWO consoles.

Are you guys insane? They'll take the loss with the Wii U, they can, it will get the games it needs eventually and best case scenario they can make the Wii U go above Gamecube LTD numbers.
 
Credit to Broken Hope for spotting the story.

http://www.dualshockers.com/2013/08...ue-to-closure-of-vital-semiconductor-factory/



So, what's the craic there then?

Will they seamlessly move production elsewhere? Is it likely to hit their bottom line?

I don't know, but I look forward to someone smarter than me telling me what it all means.
In my experience in a different industry, these situations can always happen over the life of a product and are a part of product management. As long as you know early enough, most component crises are manageable although they always come at a cost in that they derail plans that didn't need derailing in the first place.

I have no idea however how easy or hard producing this RAM elsewhere can be.
 

z0m3le

Banned
Could IBM do a SoC on their 32nm process? eDRAM is available for this process.

That might be where they go for their successor if they stick with PPC (which makes some sense for them) IBM actually has a fair bit of knowledge on large eDRAM cache and even creating a single die solution with AMD (XB360s) it might even be a smaller die node since it would be ~2017, I imagine 22nm could be targeted.
 

Mpl90

Two copies sold? That's not a bomb guys, stop trolling!!!
People that suggest Nintendo should drop the Wii U needs to wake up. The Wii U already cost at lot of R&D, dropping the Wii U to make another console now would just cost more R&D, which means the new console would have to sell fucking gangbusters to make up the R&D cost of not one but TWO consoles.

Are you guys insane? They'll take the loss with the Wii U, they can, it will get the games it needs eventually and best case scenario they can make the Wii U go above Gamecube LTD numbers.

Seriously. Asking to drop Wii U now, despite the horrendous sales, is stupid. Especially considering the kind of (further) damage Nintendo's image would see by doing that. Killing a console would severly take away the abundant majority of faith consumers have in your products. And, for the same reason, I believe they won't cut the price of 100, at least not now: 3DS pricekill already created the belief that Nintendo platforms aren't things to buy so surely at launch, since they can be price cutted in the span of a few months after launch, and I believe this has been a component in Wii U's numbers (it's been for me, at least), doing it again would re-confirm it. They need to do a 50 price cut for this Holiday, though. That wouldn't be a price-cut causing disaffection, I'd think.
 

plank

Member
People that suggest Nintendo should drop the Wii U needs to wake up. The Wii U already cost at lot of R&D, dropping the Wii U to make another console now would just cost more R&D, which means the new console would have to sell fucking gangbusters to make up the R&D cost of not one but TWO consoles.

Are you guys insane? They'll take the loss with the Wii U, they can, it will get the games it needs eventually and best case scenario they can make the Wii U go above Gamecube LTD numbers.

Its only been 10 months since release anybody who says that are just hating. I'm pretty sure Nintendo will roll with it for a while unless the big hitters flop as well.
 

gngf123

Member
announced that it decided to close four semiconductor plants in Japan within 2-3 years,

That's plenty of time. Nintendo could choose that time to stockpile everything they need, redesign the "special sauce" part of the chip, or possibly even grab whatever documentation and licensing they need to get production working elsewhere.
 

Sendou

Member
Can't see the big deal here. Nintendo will move the production to somewhere else. Hardly anything unheard-of.
 

Chittagong

Gold Member
Lol, it really seems like this console is Wii 2 For Super Players, purple poison mushrooms popping out of every block
 

Abriael

Banned
Can't see the big deal here. Nintendo will move the production to somewhere else. Hardly anything unheard-of.

Not so automatic with semiconductors, especially those the production of which has been centralized in a single plant.
 

netBuff

Member
That's plenty of time. Nintendo could choose that time to stockpile everything they need, redesign the "special sauce" part of the chip, or possibly even grab whatever documentation and licensing they need to get production working elsewhere.

The real problem is that this news could further harm future plans of selling the Wii U at a lower price by increasing production cost - stockpiling, in particular, would do that.
 

KiNeSiS

Banned
In all fairness Nintendo gens like dog years seem to be shorter lately. In 3 years they will likely drop the console and have a new console not quite as powerful as Xbox1 around the bend from that moment in time.
 

FZZ

Banned
This is interesting, won't they be able to stockpile up on the eDram? So even if the factory closes they'll still be able to manufacture consoles.
 

ASIS

Member
People that suggest Nintendo should drop the Wii U needs to wake up. The Wii U already cost at lot of R&D, dropping the Wii U to make another console now would just cost more R&D, which means the new console would have to sell fucking gangbusters to make up the R&D cost of not one but TWO consoles.

Are you guys insane? They'll take the loss with the Wii U, they can, it will get the games it needs eventually and best case scenario they can make the Wii U go above Gamecube LTD numbers.

No one is being serious with that suggestion. Calm down man.
 

Sendou

Member
Not so automatic with semiconductors, especially those the production of which has been centralized in a single plant.

Increased production costs, which will make a price drop more unlikely or expensive for Nintendo.

Yeah, sure.

Hardly doomsday material either way. Actually it might be a good thing if it would convince Nintendo to have a shorter console cycle meaning a successor for Wii U launching within 2-3 years. Console cycles are too long.
 
I don't see how it's a problem. Nintendo can just switch to have someone else make EDRAM. It will probably be 'slightly' different, but shouldn't have an impact.

I guess no one here knows that most consoles tend to switch various parts throughout their lifespan?
 

Majmun

Member
This is interesting, won't they be able to stockpile up on the eDram? So even if the factory closes they'll still be able to manufacture consoles.

I guess Nintendo should start to extrapolate Wii U demand numbers for the next 2-3 years then.

But what if they make too many, or too few?
 

Sendou

Member
This is interesting, won't they be able to stockpile up on the eDram? So even if the factory closes they'll still be able to manufacture consoles.

Sure they can do that but what if their prediction is off mark? Storage space isn't cheap either.
 
I guess Nintendo should start to extrapolate Wii U demand numbers for the next 2-3 years then.

But what if they make too many, or too few?

Let's say that Nintendo believes in their forecasts 100%.

9 million Wii Us LTD by the end of the year, so they order 6 million chips for this year. I really don't think they'll use them up for a very very long time while they lose a lot of money.
 

Phazon

Member
Nintendo can just switch to have someone else make EDRAM. It will probably be 'slightly' different, but shouldn't have an impact.

Dont underestimate the impact of a slightly different architecture/proces. It'll cost Nintendo a lot of money to research that.
 

KiNeSiS

Banned
People that suggest Nintendo should drop the Wii U needs to wake up. The Wii U already cost at lot of R&D, dropping the Wii U to make another console now would just cost more R&D, which means the new console would have to sell fucking gangbusters to make up the R&D cost of not one but TWO consoles.

Are you guys insane? They'll take the loss with the Wii U, they can, it will get the games it needs eventually and best case scenario they can make the Wii U go above Gamecube LTD numbers.


You're right Nintendo fans may be cult like & juggaloish in their devotion no matter the quality of product, but unlike juggalos I think Nintendo fans have their limit for bullshit they may be delusional when it comes to games but they are not stupid!
More importantly Nintendo may be master misers but they are brlliant and wouldn't just abandon ship on a leaky vessel.
Those who bought a Wii U recently would likely never buy a Nintendo console again if they were to do such a thing.
 

Ardenyal

Member
I don't see how it's a problem. Nintendo can just switch to have someone else make EDRAM. It will probably be 'slightly' different, but shouldn't have an impact.

Who would give them a good deal though? The console isn't selling so the price would be higher.
 

gngf123

Member
The real problem is that this news could further harm future plans of selling the Wii U at a lower price by increasing production cost - stockpiling, in particular, would do that.

Absolutely. It is a lot less of a problem than what it sounded like from the thread title though.
 

Majmun

Member
Let's say that Nintendo believes in their forecasts 100%.

9 million Wii Us LTD by the end of the year, so they order 6 million chips for this year. I really don't think they'll use them up for a very very long time while they lose a lot of money.

These parts usually get cheaper over time or when ordered in huge mass. But seeing how bad the factory is doing, I don't see the price for this customized edram dropping much in price.

The article states that WiiU's failure is a big reason for its demise. Nintendo's console has been nothing but a trainwreck so far. Yikes
 

Blueblur1

Member
Does this mean their R&D department is gonna have to redesign the component (and use large amounts of money in the process)?
 

FZZ

Banned
I guess Nintendo should start to extrapolate Wii U demand numbers for the next 2-3 years then.

But what if they make too many, or too few?

Sure they can do that but what if their prediction is off mark? Storage space isn't cheap either.

Yeah, that's the main problem at hand I suppose, whether or not they manufacture too much or too little. Has anything similar to this ever happen to a game console manufacturer, like with other parts that are important to the hardware such as the eDram is to the Wii U?
 

jaxpunk

Member
Wow with the stock threads we get the gaf financial experts.

I can't wait for the manufacturing experts in this thread!
 
Top Bottom