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Topic: Is the Wii U slow start really a bad thing financially?

Showing 21 to 29 of 29

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Aviator

21. Posted:

WingedFish wrote:

It's draining sometimes to see mostly negative discussions, we're (almost) all fans here, can't we have some excited positive topics?

Then ignore the topic?

Problem solved!

SCAR392 wrote:

Even if Company 1 sells more than Company 2, it doesn't mean Company 1's buyers are happier.

Whattt?

Edited on by Aviator

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RancidVomit86

22. Posted:

The slow start is bad. Guarantee they would had loved it to be a Wii-peat. But Nintendo will survive.

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MrGawain

23. Posted:

WingedFish wrote:

Ugh, not yet ANOTHER "worried about Nintendo" thread. /bangs head on desk

Seriously, can we talk about something positive for a change, like the awesome upcoming games? Don't get me wrong it's fine to talk about the business aspects of gaming, but it seems like that's all that is being discussed (in a mostly negative light no less) lately IMO.

I think you may have misread what I meant. I'm not trying to be negative, in a bizarre way I'm actually putting a positive slant on things.

Let's say a console is released. During it's first 6 months of life it costs $500 to produce. The ideal price for the consumer is $300. The retailer needs there cut; say that's $50 (which is very low in retail), so the console is sold to the shop at a $250 loss. If in the first 3 months you sell 2 million consoles, which is a 500 million dollar loss. That's a lot of games to sell- and brand new games, not 2nd hand.. In fact, you would be better off selling less, and starting to sell bigger numbers when production costs go down, even to when you make a small profit on each unit.

When the Wii came out, it was immediately sold at a profit, so it made sense to sell as many as possible. The Wii U isn't as financially sensible, so it may be in Nintendo's best interest to hold off on promoting the product. We know Nintendo have said they make their money back if people buy 2 games with the console, so you can imagine the loss isn't that great ($50?), but it's still a loss. Obviously there needs to be a breaking point at some time where the big games star to sell the Wii U, but it won't hurt Nintendo if the masses come along later, plus when all the teething problems go away.

Now imagine how much a PS4 will cost to produce and how much people will be willing to pay. Being successful early could actually do harm to Sony. And the same could be said with Xbox/Microsoft as well.

Basically what I'm saying is selling the most number of consoles doesn't necessarily make you the most successful business.

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Sean_Aaron

24. Posted:

Well my understanding is that the cost to produce a system goes down over time due to volumes being sold. So actually you're sort of right, but if the system never takes off then it will never achieve the volumes that will translate into lower per-unit costs. So if the Wii U isn't moving by year-end I expect a drop in price just to try to jump start sales. I never bought a system in the GameCube era, but I was almost tempted when Nintendo discounted it towards the end. It would be an act of desperation to be sure so Nintendo is right to try to avoid doing that.

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Scollurio

25. Posted:

MadAussieBloke wrote:

k8sMum wrote:

MadAussieBloke wrote:

k8sMum wrote:

@scar: Even if Company 1 sells more than Company 2, it doesn't mean Company 2's buyers are happier.

what the hell does that even mean? i've been reading for a bit and you seem to be babbling. i get that you don't like sony. but you are posting tons of words that are merely indicative of your sony hatred.

my head hurts.

@waltz: i know almost nothing about the procedure of console development. how far into the process of the development of a new console is software development for it begun? once it starts do they work in tandem?

I see company 1 and company 2... No I don't see any mention of Sony... Alot of peops hate all kinds of stuff anyway so why get butthurt because someone hates what you like seems a bit silly ;)

i don't see any sign of butthurt. ;-)

I see it twice now ;)

I chuckled triple.

No regrets.

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k8sMum

26. Posted:

@scollurio

why? because someone i rarely interface with decided to do his usual trolling one liners? whatever is replied to him just gets the same old, same old. which is why i rarely interface with him.

of course, now he will just come back at me with his predictable 'cleverness' as my saying anything makes me appear 'butt hurt'.

whatever floats your boats, guys.

Edited on by k8sMum

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SMEXIZELDAMAN

27. Posted:

k8sMum wrote:

@scollurio

why? because someone i rarely interface with decided to do his usual trolling one liners? whatever is replied to him just gets the same old, same old. which is why i rarely interface with him.

of course, now he will just come back at me with his predictable 'cleverness' as my saying anything makes me appear 'butt hurt'.

whatever floats your boats, guys.

Whatever rattles your saber :O

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WaLzgi

28. Posted:

Nintendo is fine. Just play the dang games that you bought ;)

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theblackdragon

29. Posted:

Scollurio wrote:

MadAussieBloke wrote:

I see it twice now ;)

I chuckled triple.

That's odd, I'm not laughing at all. Knock it off, please.

edit: the OP probably has a decent idea about their question from those who took it seriously, so I'll go ahead and lock this since it's already fairly well derailed.

Edited on by theblackdragon

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