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Topic: Should Nintendo Sell NX At A Loss?

Posts 1 to 17 of 17

WebHead

Let's say NX is indeed their next gen gaming paltform. Should Nintendo sell it at a loss at launch? Like say its a $350 package that they sell for $300 for example.

I think it should. It would help hardware sales in the long run. Plus Amiibo and software sales of their games should easily cover whatever the loss amount is.

WebHead

GrailUK

I thought those days are gone.

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Yoshi

It might be inevitable. The Wii U was sold at a loss for about a year and a half after launch.

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Dave24

Yoshi wrote:

It might be inevitable. The Wii U was sold at a loss for about a year and a half after launch.

Not really. As soon as someone bought 1 game, there was already profit, and you must buy the game for the console to use it. It wasn't bombing like ps3.

Selling something at loss after the bombing console would be really stupid idea.

Dave24

Mk_II

Retail price doesn't sell consoles (see Xbox vs. PS4). Good games sell consoles.

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LetsGoRetro

It would depend on whether or not a price they could profit from was reasonable. Lets say its ps4 level in order to attract 3rd parties, then tech a couple years old could likely be sold at a reasonable price and still profit. This is an assumption, of course, as im assuming ps4 isnt still losing money.

If they CAN profit, then they surely will

LetsGoRetro

DefHalan

I don't think they need to sell the console at a loss, but package a game or two in it for free. The software would be where they take the loss.

People keep saying the Xbox One doesn't have Backwards Compatibility.
I don't think they know what Backwards Compatibility means...

Rumorlife

Mk_II wrote:

Retail price doesn't sell consoles (see Xbox vs. PS4). Good games sell consoles.

Partially right and wrong. The WiiU's price, with it's current retail price, turns people away. I hope I shouldn't have to explain the stupidity of the consumer when it comes to a slight price difference and what a big deal it can make.
Literally someone yelled at me (idk why) because he said "IF I CAN GET A WII FOR LESS THAN $100 THIS THING SHOULDN'T BE MUCH MORE". Plus in history plenty of people switched teams because of prices.

[Edited by Rumorlife]

Rumorlife

CaviarMeths

I think this is the last generation where selling at a loss will be seen as a winning strategy. Previous Nintendo machines and the PS4 will be the model to imitate.

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HalfAWorldAway

Can't see it happening, the make or break for the NX will be 3rd party support.

HalfAWorldAway

Luna_110

Selling at a loss has never been an option for Nintendo.... The reason they have kept afloat with the low sales of the Wii U is that they have managed to break even. If they sold the NX at a loss, and still didn't have solid software sales, it could be a blow from which they - maybe - would difficult to recover.

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Shinion

No because spending multi-millions of pounds producing, distributing, marketing/advertising(? on that one 'cause Nintendo lol) in order to ultimately sell an expensive product to a large consumer base is beyond dumb if they cut out the means for this product to make them money. There's next to no logic that they will cut out the most important part of business (profit) in order to what, sell a few more million than they would do normally at a loss? I'm struggling to even grasp the logic actually, scrap the 'next to no' in that previous sentence.

And as amazing as amiibo has been for Nintendo and as much as their software will always continue to sell, there's an almost virtual certainty that they will be going back into the red this next fiscal year (presuming of course that's when this is released). It's their phone stuff they'd be relying on most to counteract that, but then again apart from Miitomo that is another baseless conjecture speculation rabbit-hole that I'm tired of. Selling the NX for $300 if it needs to be $350 to hit an acceptable profit margin for each unit sold is beyond even whatever the people who have the lowest opinion of Nintendo as a company would imagine them doing. They may come out with a flop or two, but they don't just flat out forget how to business properly, especially at this crucial stage for them.

[Edited by Shinion]

Shinion

Therad

TheLastLugia wrote:

No because spending multi-millions of pounds producing, distributing, marketing/advertising(? on that one 'cause Nintendo lol) in order to ultimately sell an expensive product to a large consumer base is beyond dumb if they cut out the means for this product to make them money. There's next to no logic that they will cut out the most important part of business (profit) in order to what, sell a few more million than they would do normally at a loss? I'm struggling to even grasp the logic actually, scrap the 'next to no' in that previous sentence.

if they sell the console at a loss, they will get a bigger install base. A bigger install base means more sales of software. Which translates to more profit. Don't forget that Nintendo also get a cut of every 3rd party game. So every "Call of duty" sold on a PS4, is lost profit for Nintendo.

So it might make sense to sell it at a loss.

[Edited by Therad]

Therad

WebHead

@Therad: yeah the more NX systems that are in people hands the more games and Amiibo sell. I think Nintendo should sell NX at a loss at first. Mobile, Amiibo, and first party sales should easily make up for it.

WebHead

Therad

@WebHead: well, I don't think they should sell at a loss. Unless of course they need to do it in order to sell it at all. There is a sweet spot they need to hit.

Therad

Flashman

I honestly don't think it will matter much what they sell it at. I don't believe it will sell any better than the wok u regardless of what price it is or what they launch with it. Hardcore Nintendo fans will pick one up which judging by wifi u sales there are not that many of and those that feel burned by wifi u will stay away.

Flashman

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