I just read that Nintendo sells Wii U consoles at a loss

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  3. I just read that Nintendo sells Wii U consoles at a loss
3 years ago#31
TrstTheLord posted...
Reember that the $350 you paid in the story doesn't go to Nintendo. I don't know why people continue to think this. Electronics are usually sold at half price of the retail value at whole sale. So each Wii U sold gets Nintendo $175. It is reasonable that at that price they receive some losses.


You mean the whole 350 doesn't go to nintendo? That can't be true. (;
3 years ago#32
TrstTheLord posted...
Reember that the $350 you paid in the story doesn't go to Nintendo. I don't know why people continue to think this. Electronics are usually sold at half price of the retail value at whole sale. So each Wii U sold gets Nintendo $175. It is reasonable that at that price they receive some losses.


Actually in terms of consoles retail cut is only around 10 bucks, they make the money on the software. Even the psp GO which had no software the retailers only got like a 50 buck cut.
3 years ago#33
I find it very hard to believe Ninteno are selling it at a loss.
Has it been proven? Or are we just going by what they said?

They could just be saying it to make it seem like the wii-u is worth it more than it actually is.
Either that or they are making a loss of like 5 cents.
3 years ago#34
TrstTheLord posted...
Reember that the $350 you paid in the story doesn't go to Nintendo. I don't know why people continue to think this. Electronics are usually sold at half price of the retail value at whole sale. So each Wii U sold gets Nintendo $175. It is reasonable that at that price they receive some losses.


Well we have Iwata on record saying they lose money on each WiiU sold. Also, don't forget that they factor R&D into it so even if the hardware itself doesn't cost $300, you stil have to account for billions in R&D costs into each unit.
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XBOX360 - It only does everything.
3 years ago#35
TrstTheLord posted...
So each Wii U sold gets Nintendo $175.


Source: Your behind.
3 years ago#36
DemonDog666 posted...
TrstTheLord posted...
Reember that the $350 you paid in the story doesn't go to Nintendo. I don't know why people continue to think this. Electronics are usually sold at half price of the retail value at whole sale. So each Wii U sold gets Nintendo $175. It is reasonable that at that price they receive some losses.


Actually in terms of consoles retail cut is only around 10 bucks, they make the money on the software. Even the psp GO which had no software the retailers only got like a 50 buck cut.


Things changed, used to be little markup on software.
3 years ago#37
MisterSmee posted...
I find it very hard to believe Ninteno are selling it at a loss.
Has it been proven? Or are we just going by what they said?

They could just be saying it to make it seem like the wii-u is worth it more than it actually is.
Either that or they are making a loss of like 5 cents.


Nintendo's head honcho said they need to sell a game to be profitable.
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XBOX360 - It only does everything.
3 years ago#38
silverbullt posted...
don't forget that they factor R&D into it


How?
3 years ago#39
silverbullt posted...
MisterSmee posted...
I find it very hard to believe Ninteno are selling it at a loss.
Has it been proven? Or are we just going by what they said?

They could just be saying it to make it seem like the wii-u is worth it more than it actually is.
Either that or they are making a loss of like 5 cents.


Nintendo's head honcho said they need to sell a game to be profitable.


Iwata said that?
3 years ago#40
Golden Maven posted...
silverbullt posted...
don't forget that they factor R&D into it


How?


If it takes 1B to research and develop the Wii U, they need to split that cost into each unit in addition to hardware costs. They set a life time target of units that need to be moved in order for them to make money. Selling less or more will make them make money faster or slower. There are other factors as well such as price cuts due to cheaper manufacturing processes and etc.
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XBOX360 - It only does everything.
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