44 replies to this topic

[BobbyRiddle]

Trust me you don't want to see Nintendo losing big on each console either after what the last couple of years have done to their reserves. Nintendo is banking on the fact that MS and Sony more so will not be able to over power their next gen consoles due to the beating that both took selling at a loss during this generation. I'm not sure if that will work 100% against MS because they can play that game all day. Sony on the other hand has gotten into worse financial trouble in this generation because they no longer have strong performance from the rest of their entertainment division to fall back on.

[Goose]

You can make a decent PC for 400. Optimize that for games and you have a high end console. This makes me happy because the ps720 will most likely sell at a loss as well. Just means there will be more power under the hood.

The 360 cost $470 to manufacture and was released at 300-400 just for comparison.

Edited by Goose, 24 October 2012 - 12:30 PM.

[Nollog]

The device will cost from 26,250 yen in Japan and $300 in the U.S., the company said last month. The machine will sell at a loss, Senior Managing Director Yoshihiro Mori said today at a press conference in Osaka.
“Manufacturing costs are expensive, and we priced the machine at a level customers would accept,”

Edited by Nollog, 24 October 2012 - 12:37 PM.

[SoldMyWiiUAndLeftTheForums]

Wasn't expecting this.

[Tricky Sonic]

They will get it back - after they break even with moving several million consoles they will eventual be in the plus - just like they are in the plus with every 3DS unit now

[dragomix]

This means Wii U is way more powerful than we thought! I think that they lose money only on basic 8GB one, they probably take no loss, or that loss is minimal on premium consoles!

[cannonshane]

Most consoles manufacturers lose money when the console is first released, but after a while because they are buying so many of the components necessary to build them, the price of said components drops and thus they start making money from it. Its nothing new, even sony said for the first year at least they were losing out on each ps3 console.

Edited by cannonshane, 24 October 2012 - 01:47 PM.

[Mignaga]

This is great for us. Nintendo is making a huge bet though, I hope it pays off.

[BanjoKazooie]

...... One thing that Nintendo has that Sony in Microsoft don't, is Mario, which sells 40mil+ per system on average, sooooo..... A few bucks lost on the console may be a good thing!

[Goom]

this means we all need to buy more games for the sake of the company

[FireBoost06]

I hope this means that it's actually a bit more powerful. Hopefully they make it up in software sales

[Robotic Sunshine Commander]

Keep the Peace!





Via http://mynintendonew...-for-under-300/

I would hope though that it isn't. I want Power! Lol

the wii u is even more powerful than people may think, just give the developers some time.

oh btw i called this months ago , made a thread about wii u being sold at a loss. cool news though, even though its not good for nintendo

Most consoles manufacturers lose money when the console is first released, but after a while because they are buying so many of the components necessary to build them, the price of said components drops and thus they start making money from it. Its nothing new, even sony said for the first year at least they were losing out on each ps3 console.

by 200 dollars i might add

[3Dude]

this better be due to a power increase since the previous statement that it wouldn't be sold at a loss.

That's ridiculous. $180 INCLUDING the GamePad? No way. The Wii U would have to be Dreamcast power for that. lol Anyway, the Wii U won't sell at TOO big of a loss, fortunately.



Dear Lord, I hope so.

This is good news that increases my hopes in the wiiu Hardware.

Keep the Peace!





Via http://mynintendonew...-for-under-300/

I would hope though that it isn't. I want Power! Lol

You people need to ground yourselves NOW, i do NOT want to put up with your crap when reality hits because your ridiculous expectations turned out to be ridiculous.

What on EARTH makes you think nintendo SUDDENLY, less than 2 months from launch, changed the hardware to make it more powerful and are now selling at a loss?

Common sense, for the love of lord british people, use common sense.

They are selling at a loss (overseas) now because the value of the yen jumped up considerably again, and the balue of western currencies fell, again. This means Nintendo loses money when they convert the foreign currency to yen, and thus, are selling at a loss.

This is also the main rwason they revised profit projections.

[Socalmuscle]

I mentioned a while back that the console would be sold at a loss if it was priced under $400.

It was.

The price in Japan was around $400 converted from yen at the time of pricing announcement.

The gamepad doesn't even cost $100 to manufacture. It's an item that Nintendo will profit handsomely from at retail when people are buying a second. Most console owners will want a second eventually. So the initial loss being eaten by nintendo now will be mitigated by peripheral sales and games. And in a year or so, it won't be a loss anymore.

The CPU and gpu are taking up the lions share of the money.

It's a really great system and a true next gen machine. It's not "overpowered," but it's a bruiser.

Nintendo knew they had to do 3 things.

1) offer true next gen hardware.

2) offer this hardware at an impossible, mass market price.

3) avoid the 3DS pricing disaster.

Theyve accomplished all 3 with great deals, planning, and timing.

Nintendo traditionally makes a profit from the hardware at the outset. But in some cases, it's just not possible. So they amortize their hardware costs over multiple years, projecting the pricing decrease. By a year or so, they'll begin to profit off the hardware in addition to the ridiculous amounts of money from games and peripheral sales. By the end of the generation, they'll be making money hand over fist on hardware alone.

Yes, it's being sold at a loss - right now. But that won't last long. And it was a smart move.

You can make a decent PC for 400. Optimize that for games and you have a high end console. This makes me happy because the ps720 will most likely sell at a loss as well. Just means there will be more power under the hood.

The 360 cost $470 to manufacture and was released at 300-400 just for comparison.

A $400 PC won't even come close to a consoles capabilities. And that $400 is inflated for gaming purposes since so much of the hardware has to be generalized. It's not purpose designed for games outside of the gpu.

With a console. There has been work done to create a custom, purpose built, lean, mean CPU. Then the gpu is also enhanced. In the case of the wii u, the two are almost integrated further increasing performance.

There is no $400 pc you can cobble together to compete with this. The tech doesn't exist. Not even if you had an expensive powermac and apple still used IBM processors.

Look at it like a car.

A $400 pc is a 4,500 lb 1970s Oldsmobile with a 400 horsepower big block v8.

A new $400 console is a 2013 mustang boss 302 with a 444 horsepower small block v8.

You have a purpose built machine that striPs away the excess bulk, the nonsense, the generic features, and your left with an integrated package that puts it all together to perform. In the case of the boss 302, to dominate the track. In the case of the console, to dominate games.

No $400 PC is going to compare to next gen consoles (wii u, ps4, Xbox) for a good while.

Edited by Socalmuscle, 24 October 2012 - 08:36 PM.

[Joshua]

You people need to ground yourselves NOW, i do NOT want to put up with your crap when reality hits because your ridiculous expectations turned out to be ridiculous.

What on EARTH makes you think nintendo SUDDENLY, less than 2 months from launch, changed the hardware to make it more powerful and are now selling at a loss?

Common sense, for the love of lord british people, use common sense.

They are selling at a loss (overseas) now because the value of the yen jumped up considerably again, and the balue of western currencies fell, again. This means Nintendo loses money when they convert the foreign currency to yen, and thus, are selling at a loss.

This is also the main rwason they revised profit projections.

I can see where your getting at, and I agree with the fact that Nintendo is making a loss due to currency shifts, but was it really necessary to approach this in such as hostile manner?

[Dragon]

You people need to ground yourselves NOW, i do NOT want to put up with your crap when reality hits because your ridiculous expectations turned out to be ridiculous.

What on EARTH makes you think nintendo SUDDENLY, less than 2 months from launch, changed the hardware to make it more powerful and are now selling at a loss?

Common sense, for the love of lord british people, use common sense.

They are selling at a loss (overseas) now because the value of the yen jumped up considerably again, and the balue of western currencies fell, again. This means Nintendo loses money when they convert the foreign currency to yen, and thus, are selling at a loss.

This is also the main rwason they revised profit projections.

I said I hope so. I knew logically, it wouldn't. But it isn't bad to hope.

[BobbyRiddle]

I mentioned a while back that the console would be sold at a loss if it was priced under $400.

It was.

The price in Japan was around $400 converted from yen at the time of pricing announcement.

The gamepad doesn't even cost $100 to manufacture. It's an item that Nintendo will profit handsomely from at retail when people are buying a second. Most console owners will want a second eventually. So the initial loss being eaten by nintendo now will be mitigated by peripheral sales and games. And in a year or so, it won't be a loss anymore.

The CPU and gpu are taking up the lions share of the money.

It's a really great system and a true next gen machine. It's not "overpowered," but it's a bruiser.

Nintendo knew they had to do 3 things.

1) offer true next gen hardware.

2) offer this hardware at an impossible, mass market price.

3) avoid the 3DS pricing disaster.

Theyve accomplished all 3 with great deals, planning, and timing.

Nintendo traditionally makes a profit from the hardware at the outset. But in some cases, it's just not possible. So they amortize their hardware costs over multiple years, projecting the pricing decrease. By a year or so, they'll begin to profit off the hardware in addition to the ridiculous amounts of money from games and peripheral sales. By the end of the generation, they'll be making money hand over fist on hardware alone.

Yes, it's being sold at a loss - right now. But that won't last long. And it was a smart move.



A $400 PC won't even come close to a consoles capabilities. And that $400 is inflated for gaming purposes since so much of the hardware has to be generalized. It's not purpose designed for games outside of the gpu.

With a console. There has been work done to create a custom, purpose built, lean, mean CPU. Then the gpu is also enhanced. In the case of the wii u, the two are almost integrated further increasing performance.

There is no $400 pc you can cobble together to compete with this. The tech doesn't exist. Not even if you had an expensive powermac and apple still used IBM processors.

Look at it like a car.

A $400 pc is a 4,500 lb 1970s Oldsmobile with a 400 horsepower big block v8.

A new $400 console is a 2013 mustang boss 302 with a 444 horsepower small block v8.

You have a purpose built machine that striPs away the excess bulk, the nonsense, the generic features, and your left with an integrated package that puts it all together to perform. In the case of the boss 302, to dominate the track. In the case of the console, to dominate games.

No $400 PC is going to compare to next gen consoles (wii u, ps4, Xbox) for a good while.

Excellent post man. After reading this people should feel better about the state of Nintendo going into the next generation, and it is not hard to see that Sony in particular really needs to be careful when it comes to the pricing and power of their PS4. IGN should hire you to provide counter points to all of their damned Nintendo doom and gloom articles.

[dragomix]

No $400 PC is going to compare to next gen consoles (wii u, ps4, Xbox) for a good while.

Why, just WHY? No you are not right, I have 400$ PC (3 years old), and it will be more powerful than any next gen console! It already has GPU with more RAM than Wii U, CPU that will destroy any next gen CPU in general purposing operations, and it has something that no console will ever have, a soul (I build it my self, there is no feeling like when you build your one hardware). I love gaming, I love consoles, and I do love Nintendo for their creativity, but there will never be a console that can compete with PC in some domains, because consoles are build by companies, you can't chose nothing, you have no right to change anything about hardware, and you can't change anything about games you play (resolution, lvl of details etc.). Gaming started on PC! Consoles may come and go, but PC will stay forever. And by using PC you can learn a lot about hardware, software, games, engines etc. So don't talk about PC when you don't know nothing about PC.

PC will stay, for the first time in history of gaming, more powerful than any next gen console! Even those 400$ ones (if you build them yourselves)!

I do agree with you that Wii U wont be much less powerful than other next gen consoles!

Edited by dragomix, 25 October 2012 - 08:00 AM.

[Goose]

I mentioned a while back that the console would be sold at a loss if it was priced under $400.

It was.

The price in Japan was around $400 converted from yen at the time of pricing announcement.

The gamepad doesn't even cost $100 to manufacture. It's an item that Nintendo will profit handsomely from at retail when people are buying a second. Most console owners will want a second eventually. So the initial loss being eaten by nintendo now will be mitigated by peripheral sales and games. And in a year or so, it won't be a loss anymore.

The CPU and gpu are taking up the lions share of the money.

It's a really great system and a true next gen machine. It's not "overpowered," but it's a bruiser.

Nintendo knew they had to do 3 things.

1) offer true next gen hardware.

2) offer this hardware at an impossible, mass market price.

3) avoid the 3DS pricing disaster.

Theyve accomplished all 3 with great deals, planning, and timing.

Nintendo traditionally makes a profit from the hardware at the outset. But in some cases, it's just not possible. So they amortize their hardware costs over multiple years, projecting the pricing decrease. By a year or so, they'll begin to profit off the hardware in addition to the ridiculous amounts of money from games and peripheral sales. By the end of the generation, they'll be making money hand over fist on hardware alone.

Yes, it's being sold at a loss - right now. But that won't last long. And it was a smart move.



A $400 PC won't even come close to a consoles capabilities. And that $400 is inflated for gaming purposes since so much of the hardware has to be generalized. It's not purpose designed for games outside of the gpu.

With a console. There has been work done to create a custom, purpose built, lean, mean CPU. Then the gpu is also enhanced. In the case of the wii u, the two are almost integrated further increasing performance.

There is no $400 pc you can cobble together to compete with this. The tech doesn't exist. Not even if you had an expensive powermac and apple still used IBM processors.

Look at it like a car.

A $400 pc is a 4,500 lb 1970s Oldsmobile with a 400 horsepower big block v8.

A new $400 console is a 2013 mustang boss 302 with a 444 horsepower small block v8.

You have a purpose built machine that striPs away the excess bulk, the nonsense, the generic features, and your left with an integrated package that puts it all together to perform. In the case of the boss 302, to dominate the track. In the case of the console, to dominate games.

No $400 PC is going to compare to next gen consoles (wii u, ps4, Xbox) for a good while.

I know that's what I was saying. You can build an ok gaming pc for $400 but consoles have optimized hardware. So take that same hardware from the PC and optimize it for gaming like the consoles and you will have a powerfull machine.

[Socalmuscle]

Why, just WHY? No you are not right, I have 400$ PC (3 years old), and it will be more powerful than any next gen console! It already has GPU with more RAM than Wii U, CPU that will destroy any next gen CPU in general purposing operations, and it has something that no console will ever have, a soul (I build it my self, there is no feeling like when you build your one hardware). I love gaming, I love consoles, and I do love Nintendo for their creativity, but there will never be a console that can Ncompete with PC in some domains, because consoles are build by companies, you can't chose nothing, you have no right to change anything about hardware, and you can't change anything about games you play (resolution, lvl of details etc.). Gaming started on PC! Consoles may come and go, but PC will stay forever. And by using PC you can learn a lot about hardware, software, games, engines etc. So don't talk about PC when you don't know nothing about PC.

PC will stay, for the first time in history of gaming, more powerful than any next gen console! Even those 400$ ones (if you build them yourselves)!

I do agree with you that Wii U wont be much less powerful than other next gen consoles!

A $400 OC isn't something you build and then upgrade. If your going to do that, you have to factor in upgrade costs. So a $400 pc is no longer a $400 pc after $300 worth of upgrades later.

And a $400 console is more the equivalent of a $2000 pc due to the R&D, customization and streamlining processes. You can actually buy a OC cheaper than you can build. And your still paying more for generic off the shelf hardware. and that's not yet factoring in the volume discounts on buying components in lots of 1,000, 10,000, 100,000, 1,000,000 etc.

And if you think to compare your vast PC knowledge with someone who works with software and custom hardware day in and day out, with Mcse and apple certs simply because you finally learned how to build a computer... Just remember I did that growing up instead of Legos.

Please move along.

Edited by Socalmuscle, 25 October 2012 - 07:48 PM.