If Wii U was selling at loss... Why is Nintendo releasing an underpriced bundle?

#1CaioNVPosted 2/12/2013 6:51:11 PM
80/80
Really, for extra $40 a $60 game and a $50 controller... Considering Nintendo were ALREADY selling the Wii U at a loss, isn't this a stupid deal for them?
Now, now, I imagine that a game and a controller cost way less than to produce than the actual machine, but... I just don't understand how this works.
inb4 trolls with logical fallacies on how this proves that nintendo is doing badly
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#2pokemonfreak97Posted 2/12/2013 6:52:42 PM
They are selling at a loss? [citation needed]
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#3FFXIgaiaknightPosted 2/12/2013 6:55:37 PM(edited)
pokemonfreak97 posted...
They are selling at a loss? [citation needed]


this has been well known for a while now

http://www.ign.com/articles/2012/10/24/nintendo-will-sell-wii-u-at-a-loss
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#4silverbulltPosted 2/12/2013 6:55:00 PM
Gotta increase that install base at any "cost"
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Nintendo FIX the Wii U FFS: http://youtu.be/gl5_qODv-gQ
#5DemonDog666Posted 2/12/2013 6:55:51 PM
Only the 8GB is selling at a loss, the 32 isn't. the 32 costs them like a buck more then the 8GB.
#6CaioNV(Topic Creator)Posted 2/12/2013 6:56:17 PM(edited)
Quick Google search found me this:
http://www.ign.com/articles/2012/10/24/nintendo-will-sell-wii-u-at-a-loss (I still dislike Ign).
http://www.techradar.com/news/gaming/consoles/nintendo-will-sell-wii-u-at-a-loss-rely-on-games-for-profit-1107450
Unless they stopped some time ago and I didn't know...
Ninja'd >:(
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#7CaioNV(Topic Creator)Posted 2/12/2013 6:58:10 PM
I posted...
inb4 trolls with logical fallacies on how this proves that nintendo is doing badly


Now, GameFAQs tells me
You are ignoring 2 message(s) from users on this page. Manage your list here.


... Oh my, what did I do?
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#8Sharky8Posted 2/12/2013 7:17:46 PM(edited)
Because the software sells at HUGE markups.

The physical cost of the materials of the Wii U is what makes it sell at a loss. The physical materials of a game are under $1. Selling a bundled console (at a loss) with a game marked below its regular retail price is still allowing a huge profit on it alone, which more than cancels out the loss on the console itself. In other words, a bundle makes more money than the console by itself in terms of profit/loss.
#9CaioNV(Topic Creator)Posted 2/12/2013 7:05:28 PM
Sharky8 posted...
Because the software sells at HUGE markups.

The physical cost of the materials of the Wii U is what makes it sell at a loss. The physical materials of a game are under $1. Selling a bundled console (at a loss) with a game marked below it's regular retail price is still allowing a huge profit on it alone, which more than cancels out the loss on the console itself. In other words, a bundle makes more money than the console by itself in terms of profit/loss.

Thanks for ze answer!
As I said, I just don't really know how this works.
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#10Lefty128kPosted 2/12/2013 7:09:10 PM(edited)
CaioNV posted...
I posted...
inb4 trolls with logical fallacies on how this proves that nintendo is doing badly


Now, GameFAQs tells me
You are ignoring 2 message(s) from users on this page. Manage your list here.


... Oh my, what did I do?


You became overly sensitive to negative criticism of the Wii U and blocked people making that criticism.