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Although sales of Nintendo Wii U are below the originally planned figures, Nintendo has no plans to cut the price of the console to boost popularity among buyers. Nintendo believes that with more games for Nintendo Wii U available on the market the console will gradually gain popularity among gamers.

“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,” said Satoru Iwata, the president of Nintendo, during the Q3 FY2012 financial results briefing.

Nintendo Wii U was less successful in the first week of sales in all regions where it was launched last year, including Japan, Europe and the U.S. In all regions except Japan current-generation-game consoles managed to outsell Nintendo Wii U, which costs more than basic versions of Microsoft Xbox 360 and Sony PlayStation 3 during the launch month, a rather unprecedented situation.

    

According to the head of Nintendo, the company has failed to reveal the value of the console to potential buyers, just like back in the early days of 3DS. The company will attempt to put more efforts into advertising the benefits of Wii U and working with game developers.

“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,” added Mr. Iwata.

In contrast to its tradition to sell hardware with a profit, Nintendo loses money on every Wii U game console sold as its manufacturing/packaging/shipping costs currently exceed the retail price. In this case, the company is naturally reluctant to perform a price-cut as its losses may widen considerably, whereas actual benefits of better adoption may be negligible.

Nintendo Wii U is based on a custom triple IBM Power 750 "Espresso" 1.24GHz microprocessor equipped with 1GB of system memory as well as a modern custom AMD Radeon HD "Latte" graphics processing unit with high-definition graphics and video support that is equipped with 1GB of graphics memory. The consoles come with 32GB or 8GB of NAND flash storage and an optical drive to read custom 25GB discs.

The main feature of the game console is its unique Wii U GamePad controller with 6.2" touch-screen that also features an accelerometer and a gyroscope, a rumble feature, an inward-facing camera, a microphone and speakers that can be used to play both classic Gamecube/Wii games as well as specially designed titles that take advantage of the screen. Each Wii U console will be partnered with a new controller and can also use up to four additional Wii Remote or Wii Remote Plus controllers. The system is also backward compatible and can play all Wii games and use all Wii accessories.

In the U.S., the Wii U basic bundle is priced at $299, the premium bundle is available for $349. In Europe, the basic white version is sold for €299/£249, while the deluxe black carries €349/£299 price-tag. In Japan, the white and black Wii U cost ¥26250 and ¥31500, respectively.

Tags: Nintendo, Wii U, Wii, Business, Playstation, Xbox

Discussion

Comments currently: 5
Discussion started: 02/01/13 12:29:16 PM
Latest comment: 02/12/13 06:41:11 AM
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1. 
Wii U needs more media coverage. Many people do not know it exist.

Off topic: It would be cool for all the console system accessories to be universally supported. For example, the kinect device can be plugged into PS3 and Wii U, the Wii U gamepad is usable in PS3 and XBox, etc.
0 0 [Posted by: gjcjan  | Date: 02/01/13 12:29:16 PM]
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- collapse thread

 
It would be cool, but as long as Sony, Microsoft and Nintendo need to make money that will never happen.

I agree on the media coverage. Very few people know about it and even fewer talk about it.

I also have to say I'm not seeing any games for the Wii U that I can justify buying the console.
0 0 [Posted by: whythisname  | Date: 02/02/13 04:25:10 PM]
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It's more of a matter that people simply do not care that it exists. It isn't interesting at all. They would rather wait for the new PS4 and Xbox than be disappointed once again by Nintendo. Nintendo is not synonymous with people with gaming as their hobby.

In general, those who have gaming as their primary hobby lean towards PC. The mainstream masses stick with low end PC/laptop gaming and the two major consoles: Xbox and Playstation. For everyone else, the children and typical non-gaming Joe might pick up a Nintendo to play a few simple, casual games once in a blue moon.
0 0 [Posted by: mmstick  | Date: 02/05/13 03:10:01 AM]
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2. 
Misleading title is misleading.

Anton, please, fix that. It's embarrassing. Cost-cutting methods means that Nintendo would reduce the actual manufacturing costs. You are talking about price.
0 0 [Posted by: sirroman  | Date: 02/01/13 01:06:18 PM]
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3. 
The Wii U is not my type of thing, however my Sister is a mega Nintendo fan and she is 33yrs old. she Loves the nostalgia of it all, the Wii was her 1st console and became hooked. Now she owns the Wii U, I have played it and the graphics are no better than the 360, in my humble opinion. However the 360 has many 100's of games and a solid on line backup... with millions signed up each year. The 360 and PS3 are now very cheap to buy, making them the better buy for the casual gamer... (Taking their lower prices) into consideration, like, on Amazon UK you can buy the 12GB PS3 Console, which is all you need ultra slim, (best yet) for £150 which is £90 cheaper than the basic model Wii U, so the PS3 IS THE BETTER BUY ATM, then the 360 in 2nd place. (The PS3 Has the blu-ray player) on board thats why I place it 1st, with Wifi too.. So, the Nintendo Wii U, will have to bring the prices down, if it wants to compete even with the 360. Nintendo got lucky with the Wii, but both the top consoles have better motion control.! So, if you have spare cash and love platforming games the Wii U, is best, otherwise, the PS3 & XBOX 360, ARE STILL AHEAD With better, & cheaper hardware, the Wii U, is too little, too late.! - That's only my opinion, I'm gonna keep. This year the big boys MS and Sony, will release their new consoles. (leaving the Wii U, sunk.) End.
0 0 [Posted by: braveone69  | Date: 02/12/13 06:41:11 AM]
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