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Wii U will have a "reasonable" price

Wii U will have a "reasonable" price

Tue 26 Jun 2012 4:58am GMT / 12:58am EDT / 9:58pm PDT
Hardware

Iwata talks up Nintendo returning to profitability this year

While a suggested retail price for the Wii U is still absent, Nintendo president Satoru Iwata told the Yomiuri Shimbun (translated via Andraisang) that the new system's price would be "reasonable." Iwata explained that Nintendo is not looking to repeat what happened when the 3DS launched at its original price of $250.

"We won't make the same mistake that we did with the 3DS, which was considered relatively high by consumers," said Iwata.

He also commented on the Nintendo's financial state, with the company posting its first loss ever this year. Even with ongoing problems due to the strength of the Japanese yen, Iwata believes Nintendo's problems have been fixed.

"We've fixed the 3DS profitability issue, and pledge to turn profitable by the end of this fiscal year," said Iwata.

4 Comments

Bruce Everiss
Marketing Consultant

1,692 594 0.4
1) Nintendo make a profit on everything they sell. They do not run a razor/razorblade business model like Sony and Microsoft do.
2) Nintendo's aim is to make profit from entertainment. To them technology is just an intermediary.
3) Nintendo build their products to a price that people can afford. They don't incorporate a silly wish list that is unaffordable by most.
4) Of the three main home platform holders Nintendo have proven to have their finger best on the pulse of the majority of the game playing public. It will be interesting to see if this holds going into the upcoming platform generation.

Posted:2 years ago

#1

Zan Toplisek

44 16 0.4
So... $250? If yes, then Sony and Microsoft will surely undercut them by dropping the price on their consoles right away. Can't be $200, can it?!

Posted:2 years ago

#2

James Prendergast
Research Chemist

735 432 0.6
@ Zan - I think the pricing wars will be very interesting times! :)

@ Bruce - They had their finger on the then current (2005-2010) gaming public. Gaming and people who have been "converted" to gamerdom have evolved over the last seven years. They've proven in the past that they didn't quite understand gamers' or developers'/publishers' needs (N64, Gamecube) and I don't see why they couldn't pull another Sony PS2->3.... However, I do agree with you. I think Nintendo have shown that they aren't averse to making tough decisions and calls that may or may not result in improvement whereas Sony were stuck for a long time with "There will be no price drop! etc. etc.".

I honestly do think, though, that the general public is very lukewarm-to-cold to the WiiU. I'm not seeing Nintendo courting them as well as they did before the Wii's launch and I think they have, after the Wii's history, a bit of an uphill climb to bring around the core gamer demographic which might help them with initial sales and word of mouth. I can't speak to the developer/publisher side of things but I bet they're as wary as they always are regarding Nintendo consoles...

Edited 1 times. Last edit by James Prendergast on 26th June 2012 11:01am

Posted:2 years ago

#3

David Radd
Senior Editor

359 78 0.2
While there was skepticism from some people on the core side of things for the Wii, anticipation was pretty much universal. I'm not sure if it's the same this time around for the Wii U, but having a good starting price would certainly help.

Posted:2 years ago

#4

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