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Wii U will be sold at a loss [Update: Confirmed]

if this is true and they're really packing $300-350 worth of hardware into that package, it's gonna be pretty hard for sony/MS to blow the console away while keeping a good price point. they're gonna have to skip out on their own version of the tablet controller or something.

All the more reason why I think MS is so actively testing the water on a lease plan for consoles. Hardcore will pay whatever and then they sock everyone else with the payment plans.

What? Where was this confirmed?

He is being incredibly dense or having a laugh being a troll. No other option at
 
People keep bringing this up, and I keep having the same thought...

What is the estimated cost of the rumoured components (at component cost, excl everything else) compared to the same cost of the components in the last generations tech when it launched? Has the gap widened, are those costs just going up? (e.g. not becoming more affordable)

If we can't estimate that though; do remember people:
- WiiU isn't some shitty cheap skate console
- It is more powerful and arguably better engineered (is more modern, NOT 2005 tech)
- Has less latency to the gamepad than what seems to be any (most) HD TVs
- Has a screen included in the cost AS WELL AS...a battery (thats probably the most important bit.


But yeah, is there any reason to believe PS4/720 will be priced more than 360 at launch?

I wouldn't say so... We also have rumors of subsidized pricing and the like... I also think Microsoft and Sony are more willing to take a bigger hit than Nintendo is, even if not as big of one as last time. $400 is probably the sweet spot with cheaper subsidized ones pushing $200
 
All the more reason why I think MS is so actively testing the water on a lease plan for consoles. Hardcore will pay whatever and then they sock everyone else with the payment plans.

He is being incredibly dense or having a laugh being a troll. No other option at

How far you think MS is going to get with these contracts. If Durango costs $500, how much is the contract? How long? With no games? Etc
 
How far you think MS is going to get with these contracts. If Durango costs $500, how much is the contract? How long? With no games? Etc

Say Durango costs 500. They could easily do a pay 200-250 up front then 36 months of 15 bucks and then someone ends up paying upto 800 dollars for that 500 dollar device.
 
Paging fanboys to buy Wii Us, thus hurting the Nintendo.

I know you're being sarcastic but... like buying a PS3 hurts sony right :p

(edit) Antonz: I don't think 36 month contracts are likely... 2 years again seems a sweet spot (see cell phones) and by that time there will undoubtedly be a PS4 slim or X-box 720 pro-elite-small console that'll look better and convince many people to double dip, and thus can be snagged on another 2 year contract.
 
I can only imagine that the technology needed to get the controller-screen up and running to their specifications turned out to be a much more expensive process than Nintendo first realized. The system itself seems powerful enough at first glance, though whether or not it's an obvious leap ahead of the PS3/360 remains to be seen.

I think that Sony and Microsoft will probably still be able to price their consoles competitively enough, and probably will use systems with more processing muscle than the Wii U. Much like with motion controls back in '06, I doubt that they're really scrambling to put no-latency screens into their console plans right now, and by the time they might think it necessary, the technology needed to do it well will be considerably cheaper. Even selling the Wii U at a loss, though, I'm still not sure whether the average consumer will really think that it's a worthwhile technology to invest in. I really think the Wii U's ultimate judgment is still completely up in the air.
 
You can't read as I've been saying that all along.


But we all knew the retail price of the items. We are talking about why nintendo is selling at a loss and why people wrongly think it is the manufacturing cost of the controller. Why would you think we are talking about the retail cost of the controller adding to the losses?
 
All the more reason why I think MS is so actively testing the water on a lease plan for consoles. Hardcore will pay whatever and then they sock everyone else with the payment plans

If Live is at the heart of a payment plan its pretty strong (especially if Live for 720 is a price drop on the 360 pricing); but if its still costing a lot of money - customers will know this. Its nice to have a credit option, but its not a mass market pricing strategy.

They'll only ever offer a credit option through certain stores (otherwise you get what caused the financial crash, bunch of sellers selling credit options and taking no risk - MS will ensure they share the risk of a default with their sellers).

They need both a retail and credit option (if they really want one, you can always leave that to sellers/credit card companies); and either way - pricing it right is going to be just as important as without a credit option.
 
These are retail prices. We are talking about manufacturing costs, is it possible i read it incorrectly?

We won't know until it releases and iSuppy tears them apart. Obviously selling the controller for over 50% of the main unit shows it is very expensive to make and is taking up a lot of the cost. The only other solution is Nintendo is price gouging consumers more than any other company has previously and based on Nintendo's history that is not likely.
 
But we all knew the retail price of the items. We are talking about why nintendo is selling at a loss and why people wrongly think it is the manufacturing cost of the controller. Why would you think we are talking about the retail cost of the controller adding to the losses?

To be honest I think he's just taking the piss now
 
This makes me scared that PS4/720 will be really expensive, but I'm sure I'm not the first person in the thread saying that.
 
I know you're being sarcastic but... like buying a PS3 hurts sony right :p

(edit) Antonz: I don't think 36 month contracts are likely... 2 years again seems a sweet spot (see cell phones) and by that time there will undoubtedly be a PS4 slim or X-box 720 pro-elite-small console that'll look better and convince many people to double dip, and thus can be snagged on another 2 year contract.

And you are right a 2 year contract is more likely though it would likely mean the initial investment would be higher.
 
We won't know until it releases and iSuppy tears them apart. Obviously selling the controller for over 50% of the main unit shows it is very expensive to make and is taking up a lot of the cost. The only other solution is Nintendo is price gouging consumers more than any other company has previously and based on Nintendo's history that is not likely.


You do know thay every console manufacturer price gouges on their peripherals right? A 300% markup on the controller is pretty small considering the 500-1000 percent markups at certain points this gen for controllers for all three manufacturers.
 
Meanwhile, sony is now finally profiting on ps3 sales.

Microsoft is close to profits on most models and subsidises itself with live subscription anyway.

This money could be made back by nintendo if they sold their games online.
 
You do know thay every console manufacturer price gouges on their peripherals right? A 300% markup on the controller is pretty small considering the 500-1000 percent markups at certain points this gen for controllers for all three manufacturers.

Except that the markup on the controller brings it to a $173 price point, and not $50.

It isn't the same thing at all, so don't pretend it is.
 
You do know thay every console manufacturer price gouges on their peripherals right? A 300% markup on the controller is pretty small considering the 500-1000 percent markups at certain points this gen for controllers for all three manufacturers.

Sure, but show me a system where the controller was more than 50% of the launch price. Show me one that was 25% even. This is not Nintendo's M.O.
 
Meanwhile, sony is now finally profiting on ps3 sales.

Microsoft is close to profits on most models and subsidises itself with live subscription anyway.

This money could be made back by nintendo if they sold their games online.

I think this is what nintendo is going to really start embracing. With miyamoto heading up a "smaller games" division the whole digital retail chain might become very lucrative and not be an afterthought like it was on wii.
 
Reminds me when people claimed bluray drive in ps3 was 300 since cost that much in walmart when could buy a pc blurry drive for 150-200.
Screen on controller is most likely cheap as chips due to the mass amounts of tablets.

Got to assume will break even within 6months of launch.
 
Reminds me when people claimed bluray drive in ps3 was 300 since cost that much in walmart when could buy a pc blurry drive for 150-200.
Screen on controller is most likely cheap as chips due to the mass amounts of tablets.

Got to assume will break even within 6months of launch.

You have to wonder if any tablets still use a 480p resistive touch screen.

Nintendo might have had to develop their own.
 

I'll believe it when I see it. Nintendo is all talk no action. Who's to say they can have functioning video game store for 25gb disk games out of the box?

Also will third party games be on sale? The only company who's getting day and date games online is sony, and most third parties aren't even playing along.
 
Sure, but show me a system where the controller was more than 50% of the launch price. Show me one that was 25% even. This is not Nintendo's M.O.

Wasnt the wii controller and nunchuck $60 retail at launch? The wii was only 249 with a game. And at launch the cost was like $15 for manufacturing the controller which is close to 400% markup. From what you are saying then that at 400% markup then the actual cost of the gamepad to manufacture is $40.
 
I'm both shocked that Nintendo is selling hardware at a loss


AND shocked that a system with such low spec+ a non capacitive low res tablet cost that much.
 
I'll believe it when I see it. Nintendo is all talk no action. Who's to say they can have functioning video game store for 25gb disk games out of the box?

Also will third party games be on sale? The only company who's getting day and date games online is sony, and most third parties aren't even playing along.

If they can sell their 3ds games online I'm sure they can do the same for wii u, plus its not very likely any of the launch games will be anywhere close to 25gb
 
I'll believe it when I see it. Nintendo is all talk no action.

There's currently NSMB2, Mario Kart 7, 3D Land, Ocarina of Time 3D and Star Fox 64 3D available to download from the eShop. (I think I'm forgetting one.) All future First-Party Nintendo Games for the 3DS will be available at launch to buy digitally on the eShop.

And every First-Party Nintendo games for Wii U will be available digitally from Day 1.
 
I'm starting to wonder if part of the reason for the loss is that retailers are demanding a higher margin on the console since we are moving towards the digital era. If that's the case it will obviously affect MS and Sony as well.
 
There's currently NSMB2, Mario Kart 7, 3D Land, Ocarina of Time 3D and Star Fox 64 3D available to download from the eShop. (I think I'm forgetting one.)

And every First-Party Nintendo games for Wii U will be available digitally from Day 1.

Style boutique and oni training in Japan as well
 
Reminds me when people claimed bluray drive in ps3 was 300 since cost that much in walmart when could buy a pc blurry drive for 150-200.
Screen on controller is most likely cheap as chips due to the mass amounts of tablets.

Got to assume will break even within 6months of launch.

The drive unit was expensive to replace especially during the beginning of the generation i remember it would cost close to $100 and the markups on those from the supplier was pretty low by comparison and you had to purchase quite a few of them. So maybe it cost around $50 to manufacture before markups. The wii optical drives were $30 to replace but probably cost half that price before markups. I would imagine the optical drive unit for wii u being close to that $15 as a possibility based on experience with wii.
 
There's currently NSMB2, Mario Kart 7, 3D Land, Ocarina of Time 3D and Star Fox 64 3D available to download from the eShop. (I think I'm forgetting one.)

And every First-Party Nintendo games for Wii U will be available digitally from Day 1.

YEAH, like i said, i'll believe it when I see it. E-shop doesn't have paper mario, and kid icurus for god knows what reason just to name two game MIA.

Why isn't resident evil revelations on the e-shop? Where are the third party exclusives ? Also... why doesn't the 3ds have a download bar! I havn't downloaded or purchased a 3ds game yet, but I can already imagine my 3ds staying on for 6 hours just downloading... also do I need twice as much space of a game to download and install?!

:/ maybe i'm being to negative but I do not in anyway believe they will meet what they promised. And will be slow to achieve digital day 1.
 
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