Wii U sells for a loss but only needs to sell one game to become profitable

Discussion in 'Wii U - Games & Content' started by Lurker2, Nov 21, 2012.

  1. Lurker2
    OP

    Banned Lurker2 Banned!

    Joined:
    Sep 7, 2012
    Messages:
    330
    Country:
    United States
    Source
    With Gamestop claiming they had a decent game attachment for each Wii U it is good to know Nintendo probably won't lose much money at launch or any. I wonder if it will end up like this generation where the Xbox and Playstation prove to just be money pits with profit returns at the end of their life.
     
    Rasas likes this.
  2. wrettcaughn

    Member wrettcaughn Misunderstood Moral Elitist

    Joined:
    Mar 14, 2009
    Messages:
    3,785
    Country:
    United States
    The thing I'm most impressed with, is the number lives Reggie's accumulated in New Super Mario Bros. 2
     
    -Hero- likes this.
  3. Rydian

    Member Rydian Resident Furvertâ„¢

    Joined:
    Feb 4, 2010
    Messages:
    27,883
    Location:
    Cave Entrance, Watching Cyan Write Letters
    Country:
    United States
    Pretty interesting that it's cut so close.

    Remember that the retail price you get for games isn't all going to Nintendo, they're only getting a bit of that end price.
     
  4. FireGrey

    Member FireGrey Undercover Admin

    Joined:
    Apr 13, 2010
    Messages:
    3,916
    Country:
    Australia
    He used Nintendo's secret hacks.
     
  5. ferofax

    Member ferofax End of the World

    Joined:
    Jan 26, 2009
    Messages:
    2,564
    Location:
    Philippines
    Country:
    Philippines
    He's likely entitled to hacks. If I was Nintendo CEO, I'd probably demand the same.
     
  6. BORTZ

    Global Moderator BORTZ wtf, nintendo

    Joined:
    Dec 2, 2007
    Messages:
    10,644
    Country:
    United States
    Wow and it doesn't even cost all that much.
     
  7. Lucifer666

    Member Lucifer666 all the world needs is me

    Joined:
    Apr 22, 2011
    Messages:
    1,392
    Location:
    The Fourth Dimension
    Country:
    Antarctica
    That's some crappy pricing right there. The Wii U, for what it can do, is extremely cheap. They could've priced it just a little higher, at least to have minimal profit. Selling it at a loss is seriously risky.
     
  8. Deltaechoe

    Member Deltaechoe The Dopefish

    Joined:
    May 3, 2012
    Messages:
    509
    Country:
    United States
    I hate to sound like a pompous ass, but you are wrong. Most gaming hardware sells for a loss, the real money has ALWAYS been the software. Besides do you honestly think the market would bear a console that sells for over 400 dollars? Microsoft hit the very edge of average consumer acceptability when they priced their top package at 400 dollars, and if the wii is sold on a profit it would end up being more than that considering what is inside of the system. Sony tried to sell for a profit on the PS3 and the result was low sales and reduced revenue.

    If a gaming company prices their consoles in the range that Nintendo just did, then more people buy the console which means more people buy the software
     
  9. Arras

    Member Arras ★02

    Joined:
    Sep 14, 2010
    Messages:
    5,717
    Location:
    The Netherlands
    Country:
    Netherlands
    Nope, the original PS3 sold for a MASSIVE loss if I remember correctly. It's just that the thing took so much money to make at launch.
    From Wikipedia:
    "The PlayStation 3's initial production cost is estimated by iSuppli to have been US$805.85 for the 20 GB model and US$840.35 for the 60 GB model.[275] However, they were priced at US$499 and US$599 respectively, meaning that units may have been sold at an estimated loss of $306 or $241 depending on model"
     
  10. Deltaechoe

    Member Deltaechoe The Dopefish

    Joined:
    May 3, 2012
    Messages:
    509
    Country:
    United States
    Oh hell, you're right, I had my information mixed up. Still my point remains somewhat valid, the reason that the Wii U is priced as it is is to sell consoles which does present the incentive to buy software and accessories.
     
  11. Nah3DS

    Member Nah3DS Madre de Dios! Es El POLLO DIABLO!!!

    Joined:
    Feb 9, 2010
    Messages:
    3,553
    Country:
    Argentina
    Now that I read that, I cant believe how Sony pull that out without going straight to bankruptcy.
    Well, I guess only a big multibillion dolar company could do that. For a game only company like Nintendo, that would be like suicide.
     
  12. Deltaechoe

    Member Deltaechoe The Dopefish

    Joined:
    May 3, 2012
    Messages:
    509
    Country:
    United States
    I believe their business value took a massive hit after the PS3 release, but I haven't done any recent research so my memory might be foggy
     
  13. Taleweaver

    Member Taleweaver Storywriter

    Joined:
    Dec 23, 2009
    Messages:
    5,121
    Location:
    Belgium
    Country:
    Belgium
    I kinda wonder what they mean with "only needs to sell one game". Does that mean nintendo is actually making a profit of the premium and deluxe versions, as they come bundled with one?
    Or is it only in the green if you buy an additional game on top of that? And does it matter whether it's a first or a third party title?

    I disagree to this for a different reason Deltaechoe mentions (though I do agree with him on those points).

    How is it risky if you only need to sell one game to make it profitable? Despite all the other features, people will buy games for it. I don't have figures for how much, but I'm willing to bet my head on it that the average will be more than one (yes, there will be people speculating on a shortage and buying a whole bunch for resale, but they're exceptions).

    No...the main risk for loss is in unsold devices. And that's more likely to happen with a price that's too high. When nintendo said they learned their lessons from the 3DS...I think they really meant it.
     
    xwatchmanx likes this.

Share This Page