The price is holding firm for now

Following the announcement of the latest financial results for Nintendo, Satoru Iwata addressed a number of issues in a subsequent briefing, some of which we've already reported. Naturally, Wii U was a major part of the presentation, with data presented by the Nintendo President that showed an initial burst undermined by a rapid loss of momentum, leading to Nintendo projecting just one million worldwide sales between January and the end of March.

While the 3DS had a substantial price cut merely months after release, there's understandable resistance to taking that step with the new system. Satoru Iwata admitted that the "value" of the product needed enhancements from games and the upcoming system updates, stating clearly that the goal is to convince more consumers of why they should want a Wii U rather than simply cut the price.

While it was pointed out that, unlike in the case of Wii, it was difficult to instantly understand the appeal of Wii U, those who purchased it, although there are issues to be addressed, have shown a certain degree of satisfaction with our product value, but since its value by nature is something that takes time to appreciate and hence cannot be spread amongst society instantly, we have yet to communicate its value to the wider public. To put it another way, we delivered Wii U to those consumers who we thought would be the first to buy it, but information has not successfully been passed on to those consumers who we think will be the next people to buy it. This must be one big factor with which Wii U could not maintain its momentum.

People always try to compare the sales of Wii U with that of Wii, but the current situation is requiring us to focus upon how to reenergize Wii U sales irrespective of any comparisons with the previous platforms.

With Wii U, we have taken a rather resolute stance in pricing it below its manufacturing cost, so we are not planning to perform a markdown. I would like to make this point absolutely clear. We are putting our lessons from Nintendo 3DS to good use, as I have already publicly stated. However, given that it has now become clear that we have not yet fully communicated the value of our product, we will try to do so before the software lineup is enhanced and at the same time work to enrich the software lineup which could make consumers understand the appeal of Wii U.

It could be argued that the Wii U line-up due in the next few months, as well as further down the line, is meatier than that outlined for 3DS when it had its price cut. We are, of course, yet to see what third-party offerings are coming in the second half of 2013, and optimists will hope that some high-quality multi-platform releases will be joined by a few exclusives.

With Wii U currently struggling for momentum and it already being sold at a loss, what do you think about the issue of a price-cut now that it's been ruled out, for the time-being, by Nintendo? Let us know in the comments and poll below.

Do you think that the Wii U needs a price cut? (235 votes)

  1. I think it's needed to boost the system10%
  2. Nintendo's right to resist, upcoming games will sell the system65%
  3. It'll need a price cut later in the year, regardless of games17%
  4. I'm not sure8%

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