Wii U to be sold at a loss

While Wii U will represent the launch of Nintendo's most-expensive console yet, it appears Nintendo is still subsiding the cost of the hardware.

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Nintendo is not a company known for selling hardware at a loss. Only when Nintendo started selling 3DS below cost did the company report massive losses--a necessity to help rescue the then-fledgling platform. And while Wii U will represent the launch of Nintendo's most-expensive console yet, it appears Nintendo is still subsiding the cost of the hardware.

Speaking at a recent investor's meeting, Nintendo's Yoshihiro Mori confirmed that Nintendo will take a loss on each system sold. It's unclear how much of a loss Nintendo is expected to take, but clearly bundling a tablet controller with every system has something to do with the system's unusually high production cost.

"Manufacturing costs are expensive, and we priced the machine at a level customers would accept," Satoru Iwata said according to IGN. "It's important for us to develop a healthy business next fiscal year by combining sales of hardware and software."

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  • reply
    October 24, 2012 3:15 PM

    Andrew Yoon posted a new article, Wii U to be sold at a loss.

    While Wii U will represent the launch of Nintendo's most-expensive console yet, it appears Nintendo is still subsiding the cost of the hardware.

    • reply
      October 24, 2012 3:16 PM

      I keep thinking they are making a huge mistake.

      • Ebu
        reply
        October 24, 2012 3:19 PM

        That's because you're not insane.

        They're going all-in on this thing, but they're making so many mistakes. :(

        Nintendo, please, just make some good side-scrollers for the Vita. A good, classic Mario game, a 2.5d Kid Icarus, a 2.5d Metroid, a 2.5d Castlevania, a top-down Zelda game (that doesn't look like WW).

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          October 24, 2012 3:24 PM

          Making games for other systems would be the stupidest thing Nintendo has ever, or would ever do. Bar none. Their 1st party games are what keep their hardware alive.

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            October 24, 2012 3:26 PM

            I think the point is, we don't need Nintendo's hardware anymore. The choices they continue to make with hardware are baffling and aren't really leading to exciting changes in the industry...it just ends up being another gimmick foisted onto games that don't need it (like say, waggle bullshit in SMG1/2)

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              October 24, 2012 3:46 PM

              You don't need Nintendo hardware anymore. And you're in the minority in regards to SMG. SMG is considered one of the top games of all time by TopTenReviews, GameRankings, and Metacritic. Removing hardware severely limits Nintendo's ability to innovate. And if you think it's not a big deal, you can throw away the portable gaming market, the acceptance of touch screens, motion control, and the recent push of secondary video outputs for home entertainment and games. Companies like Microsoft and Sony try to play leap-frog with Nintendo's gimmicks for a reason. Nintendo innovates and brings fresh ideas to the plate. While they may not always pan out or be the greatest, there are definitely shining moments and industry as a whole would be lessened without them.

              Super Mario Galaxy is the second highest-rated game of all time on the review aggregator website TopTenReviews,[3] as well as the second highest of all time on review aggregator website GameRankings.[59] The game is the third highest rated game of all-time on Metacritic.
              http://en.wikipedia.org/wiki/Super_Mario_Galaxy#Reception

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                October 24, 2012 6:13 PM

                I'm not saying SMG is bad, I'm saying SMG features a totally unnecessary usage of the Wii's "gimmick", despite the fact that the game would play as well, if not better without it.

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                  October 24, 2012 6:45 PM

                  I don't know. It really does feel nice not having your hands so close together while playing. Even ignoring the motion controls, nunchuck + wand was more comfortable from a traditional controller.

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                October 24, 2012 6:22 PM

                Even before things like motion, they were first with a dpad, shoulder buttons, trigger buttons, analog sticks, rumble, etc.

                Nintendo not producing hardware would be a huge loss for everyone, even if you don't play on their actual systems

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              October 24, 2012 5:23 PM

              I totally agree and for those that like SMG (my self included) there is options out now on the PC Giana Sisters: Twisted Dreams its a EPIC platformer that pushes the genera probably even more than the past few SMG have ever and you can play it now. I used to play the orig on the C64.

              13$ on Steam http://store.steampowered.com/app/223220/?snr=1_4_4__tab-NewReleasesFilteredDLC_1

              Screens: Supports DX10 and 11 and the gameplay and level design is outstanding for the genera

              http://renewsoft.com/GianaSistersTwistedDreams/GSGameExe%202012-10-24%2016-48-38-35.jpg
              http://renewsoft.com/GianaSistersTwistedDreams/GSGameExe%202012-10-24%2016-48-49-37.jpg
              http://renewsoft.com/GianaSistersTwistedDreams/GSGameExe%202012-10-24%2016-49-00-09.jpg
              http://renewsoft.com/GianaSistersTwistedDreams/GSGameExe%202012-10-24%2016-49-15-00.jpg
              http://renewsoft.com/GianaSistersTwistedDreams/GSGameExe%202012-10-24%2016-52-48-87.jpg

              Rest: http://renewsoft.com/GianaSistersTwistedDreams/

              You press a button and the game instantly switches to a alternative char(abilities) music(epic score) and universe in the same lvl its pretty freaking cool. Tight platforming and thinking I real love it also Hell Yeah! Wrath of the Dead Rabbit is another platformer dear to my heat so freaking good http://store.steampowered.com/app/205230/?snr=1_7_suggest__13

              N's days are numbered.

              • reply
                October 24, 2012 7:22 PM

                wow i loved giana sisters as a kid. and the music in this is the same, and it looks pretty awesome!! thanks man!

                • reply
                  October 24, 2012 7:49 PM

                  Cool, yeah it was great hey old school C64 the music was amazing. For the new one don't think the game is easy the first stage is but it gets real hard and you have to think hard core(they ease you in, you will be hooked after lvl 1). If you love the old school music you can force it to only play that style(options). As it is when you switch to the punk version it plays a Metal score the good version in the death universe version plays which is the orig music style keyboard synth(it has some real cool new music too).

                  Enjoy its really great hard to put down. Man I need so much time to play all my games and work on my projects, I wish I did not have to go to work :( and waste time on stuff I don't care about.

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              October 24, 2012 6:22 PM

              People were spouting this bullshit off before the Wii, and they were wrong then too.

              • Ebu
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                October 24, 2012 6:42 PM

                I don't feel like the Wii added anything to the market. I own one, bought it from a friend for less than a hundred bucks, don't feel it was even worth that.

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                  October 24, 2012 6:46 PM

                  Well, tens of millions of people and two huge competitors felt it offered quite a bit to the market.

                  • reply
                    October 25, 2012 4:54 AM

                    When they bought it, and most found it lacking. Power of marketing and fanboyism I guess.

                • reply
                  October 24, 2012 6:51 PM

                  I crosses generations like no other console before. You can play games with a 1 yr. old, all the way to your grandparents and have fun.

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                  October 24, 2012 7:03 PM

                  Really?

                  The Wii was an enormous hit right out of the gate. Everyone and their mother was interested in this new motion controller because it was different]. Things like Wii Sports were an instant smash at most parties, drawing in a ton of people that wouldn't normally want to pick up a controller for fear of 'too many buttons' or it being too complicated. I remember watching my aunts and uncles all playing bowling together and having a blast, thinking this would never happen if I attempted to hand them a 360 controller. Never.

                  It sold way more copies than either the PS3 and Xbox, and also forced both companies on the defensive and made them to play catch up with their own versions of motion control, years later. While I agree that the Wii lost a lot (all?) of it's steam fairly quickly and became somewhat of a joke to most hardcore gamers, you can't deny the impact it had on the industry.

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                  October 24, 2012 7:05 PM

                  it added something to the market its called cash moneys for nintendo

                  • Ebu
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                    October 24, 2012 8:02 PM

                    Can't argue with that.
                    Market wasn't the word I should have used.

                    I'm not saying Nintendo was dumb to do the whole Wii thing, but they are no longer a company for me. :(

          • reply
            October 24, 2012 3:44 PM

            The New Super Mario Bros type games are so heartless and such obvious money-grabs that they might aswell stick them on the Android/Apple stores.

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              October 24, 2012 3:54 PM

              Play the average iOS/Android platformer and then play ANY of the NSMB games and objectively point out how they are even close to the same quality. I'd like to see that.

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            October 24, 2012 4:03 PM

            and would the vita really be the proper choice anyways? seriously

            • Ebu
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              October 24, 2012 6:43 PM

              The only (current) handhelds are the Vita and the 3DS.

              Yes, the Vita is the proper choice.


              I own a Vita :(

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          October 24, 2012 4:02 PM

          Uhm...the Vita is doing worse than the 3DS...why would they make games for THAT?

          • Ebu
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            October 24, 2012 6:43 PM

            Because I want more fun games for my Vita. :(

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          October 24, 2012 5:47 PM

          Yes, Nintendo please fix your mistakes by producing games for the Vita. What?

        • reply
          October 28, 2012 4:15 PM

          Castlevania is a Konami property, just so you know.

    • reply
      October 24, 2012 3:31 PM

      Miiverse will make or break the console. Online stuff will be huge for the next generation and I hope they've got more than just a storefront for demos & shit.

    • reply
      October 24, 2012 3:48 PM

      Whoa

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        October 24, 2012 3:55 PM

        They started the trend with the 3DS, not surprising.

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        October 24, 2012 6:03 PM

        Yeah, I'm surprised too. Seems like a big policy shift. But hey, they rocked it last generation so hey.

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          October 24, 2012 6:09 PM

          Gamecube was at a loss too, no?

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            October 24, 2012 6:12 PM

            And that worked out so well?


            I'm referring to their wii-profit strategy. Seemed to be part of the reason they did so well.

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          October 25, 2012 7:31 AM

          i don't think it'd a bad move or anything (other console makers have been doing this for years and they've been very successful), it's just surprising.

          like i've said before, i'll probably get one within the next 6 months!

          ps go sign up for twitter

    • reply
      October 24, 2012 3:59 PM

      Please shack, tell me again how stupid the Wii was and how awful its sales were going to be.

      • reply
        October 25, 2012 9:36 AM

        This post deserves more love

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      October 24, 2012 4:22 PM

      do they expect people to buy tons of games? because the average wii user didnt.

    • reply
      October 24, 2012 5:25 PM

      Funny. In the past Nintendo has stated numerous times that they intend to profit on the sale of each Wii U console.

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      October 24, 2012 5:49 PM

      I'm kinda curious as how it works out as a tablet.


      It will be interesting to see how nintendo markets this in their ads.

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        October 24, 2012 6:08 PM

        I got to play it at gamestop, I was genuinely surprised how good the screen looked. I expected it to look a lot worse

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          October 24, 2012 10:22 PM

          The screen looks good and it's comfortable to hold. I was pleasantly surprised.

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        October 24, 2012 10:35 PM

        it doesn't do multitouch and it has 3-5 hours of battery life, does that answer your question?

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          October 24, 2012 11:15 PM

          ...and it doesn't work at all without the base unit, so... it doesn't work as a tablet at all.

    • reply
      October 24, 2012 6:34 PM

      The word you wanted was subsidizing not subsiding.

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      October 24, 2012 10:55 PM

      Don't believe this for a second!

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      October 24, 2012 11:05 PM

      Priced at a level customers would accept? I'm wondering what customers were all that happy about its price? Most people I know were annoyed at the pricing and felt it was just a bit too high.

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      October 25, 2012 4:05 AM

      Will this be the first console to actually put out real 1080p games? personally im excited to get my hands on this, and it has already been pre-ordered. The idea of being able to play a quality AAA SMB and AssCred on the same system is enough for me. However the above news sounds like a marketing play. Just sayin.

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        October 25, 2012 8:21 AM

        some are 1080, but most seem to be 720 I think. You'd think ported games (like ass cred) could 1080 it up, but they don't seem to be.

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      October 25, 2012 8:10 AM

      HD Mario Galaxy collection and I will buy.

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      October 25, 2012 8:37 AM

      They should sell them on eBay like everyone else