Wii To Be Profitable At Launch.

richbastard

richbastard

CAGiversary!
' Reggie: Wii makes $$$ immediately ' '

Nintendo’s Reggie Fils-Aime said during a recent interview that the Wii will be profitable “out of the box”.

“We will make a profit on the entire Wii proposition out of the box — hardware and software… That really is a very different philosophy versus our competitors.”

Microsoft has said their Xbox360 loses money on every console sold, and industry analysts think that Sony is certainly loses money on the $600 PS3. But it’s of no surprise that Nintendo will be making money on Wii when it launches, same thing happened with the GameCube vs. PS2 and Xbox.

The main reason the Wii can turn profits from day one is of course the price of Wii hardware. Most of it is built on existing GameCube technology, and is therefore far cheaper, but also less powerful console than its counterparts. ' '


God this is awfull i mean, i rather support microsoft on this one then nintendo.
microsoft and Sony loosing big bucks on this one,but seems like nintendo are the one ones that can easily get away with this and nobody is making a big deal out of it.

http://www.gamespot.com/news/6157690.html


icon_biggrin.gif
only nintendo can get away with this without nobody in the internet making such a big deal out of it.

i wonder,what would happend if this was microsoft or Sony instead.
icon_wink.gif
nintendo are cheap bastards and very errogant i dont support stuff like that.
 
I don't see what they're getting away with?

If you can make a system that has a unique appeal and make money on it, while selling for less than competitors then good for you.

As one of the majority of people still without a HD tv, I don't see the graphics thing as much of an issue. Especially if it forces companies to make games that play well as opposed to just look good.
 
Don't respond to this guy, I mean, just look at him.

"NINTENDO IS ERROGANT" He's like 12.

It's sadly ironic that his avatar is from a game that was originally developed for the gamecube, however.
 
Hey, you know something else? When you buy a car, you know, the car dealer, he makes a profit. I know, it's crazy.
 
[quote name='SpazX']Hey, you know something else? When you buy a car, you know, the car dealer, he makes a profit. I know, it's crazy.[/QUOTE]



thats a poor example, because when you buy games Nintendo gets a cut, except for used games. When you buy parts for a car, the dealer who you bought the car from doesnt get a cut.
 
Actually that's a poor counter-argument, because the majority of the profit a dealer makes on a new car sale comes from the servicing of that car.
 
GOD DAMMIT NINTENDO! Why do you have to make money and not go out of buisness forever and let Sony and Xbox take over the gaming market and make every game with someone running around killing people!

-_- Maybe you should go cry because a company is trying to make money? Boo hoo no one cares.
 
[quote name='Ikohn4ever']thats a poor example, because when you buy games Nintendo gets a cut, except for used games. When you buy parts for a car, the dealer who you bought the car from doesnt get a cut.[/quote]

That would be correct if I was trying to make a comparison. I was just letting the OP know that people that sell things make profits. It's one of those things that happens in capitalism.

Nintendo makes a profit on their consoles (for the bazillionth time) because that's all they do: make video games.
 
Nintendo has always made a profit, they made a profit on the gamecube too. Nintendo "Supposedly" (Dont know 100%) has never lost a dime on a system except for the Virtual Boy and the Nintendo DS (Non-lite).

Ones a bad mistake, and one they knew was going to fly. I dont think Nintendo has stuck behind a console a 100% in quite sometime. Almost feels like they know something we dont about the Wii.
 
[quote name='SpazX']Nintendo makes a profit on their consoles (for the bazillionth time) because that's all they do: make video games.[/quote]

They also own most of the Seattle Mariners, they own Pokemon and run all of the licensing for it, They also own Gyration, who makes their Gyroscopes (The most expencive thing in the Wiimote, is now free)
 
The reason Sony and Microsoft are taking losses on their consoles is because if they tried to sell their hardware at a profit, people would laugh at the price and wouldn't purchase one.

Would you buy a $900 ps3? That is what it would take for Sony to break even on the parts.
 
[quote name='evilmax17']Seeing a thumbs down next to the subject line is mind boggling to me.[/QUOTE]

I just think it's kind of lame since they cut DVD movie playback for cost proposes.

Would it really have broken the bank to add that feature?
 
[quote name='Mookyjooky']They also own most of the Seattle Mariners, they own Pokemon and run all of the licensing for it, They also own Gyration, who makes their Gyroscopes (The most expencive thing in the Wiimote, is now free)[/QUOTE]

You forgot the Mario licensing too.
 
Let's see.

Making money on a product is an aspect of Capitalism.
Nintendo is making money on a product.
Therefore, Nintendo is invovled with Capitalism.

There are people who don't like Nintendo making money.
These people are against Nintendo's use of Capitalism.
Therefore, these people hate Capitalism.

People who hate capitalism are communists.
Therefore, people who are upset with Nintendo making money are communists.

I understand now.
 
Yes, Nintendo will make a profit. The Wii inftrastructure is an extension of the Gamecube, which helps keep software develpment costs down for the game makers--thus keeping games away from the $60 price tag. So hypothetically, it could either be a $200-$225 Wii (one-time fee) and $55-$60 (per game) or $250 (one-time fee) and $50 or under (per game).
 
I think why most people Dont get it, and some people do.. is that the video game business ISNT designed for the companies to make profit off the consoles.

Just like Cell phone companies arent designed to make money off the phones.

They make money off the licensing in games.

The average buyer looks at this and say, "So what?"

Most business majors look at this and say, "It's planned to fail"

I'm buying one to get my girlfriend into gaming a bit more, but I know that Nintendo is planning this from the get go. They know they cant keep in the running against powerhouses like Sony and Microsoft. I know you think Nintendo has money, but Sony owns half of the Movie industry, and Microsoft owns half the f*cking world. Nintendo is a small fish in a big pond now. And they decided to take an easy way out by hyping a niche market and trying to make everyone forget that the last 2 consoles were professional failures.

I say power to them, but I expect the Wii to have about 2 years lasting power, and thats by them staggering they're current lineup of games for the next 2 years. (Which is EXACTLY what they did with the N64 and Gamecube.)
 
[quote name='Mookyjooky']They also own most of the Seattle Mariners, they own Pokemon and run all of the licensing for it, They also own Gyration, who makes their Gyroscopes (The most expencive thing in the Wiimote, is now free)[/quote]
Owning the company that makes gyroscopes doesn't make the gyroscopes free, they still have to make them. It cuts out the middle-man and makes it a hell of a lot cheaper, that's for sure, but not free.

I concede Pokemon, that's fucking cash right there, but I still doubt Pokemon makes as much money, as, say, Windows and Office.

If that now means that Nintendo is a larger company than Sony and Microsoft making many different electronic devices, motion pictures, and almost unavoidable computer software, then I'll say good job Mooky, you didn't completely miss the point, but otherwise...


EDIT: Come on Mooky, you say that Nintendo makes money on all their consoles (including successful ones such as NES, SNES, Game Boy, GBC, GBA, GBASP) and then if they make a profit on this one it's because they're planning for it to fail? It seems as if it's just what they've always done.
 
The losing-money-on-a-console-sale philosophy is a very recent addition to the marketplace, and something that Nintendo has never done.

To say that's how the game industry is designed is ignorant; to say that's how some have carved out their piece of it would be accurate.
 
[quote name='SpazX']EDIT: Come on Mooky, you say that Nintendo makes money on all their consoles (including successful ones such as NES, SNES, Game Boy, GBC, GBA, GBASP) and then if they make a profit on this one it's because they're planning for it to fail? It seems as if it's just what they've always done.[/quote]

Because bringing up 2 Consoles that one of them came out when everyone though gaming was dead, and the other came out because it was the best and gameing was still in its infancy.

The handheld market is Nintendo's they OWN it practically. But tides change...
 
[quote name='daroga']The losing-money-on-a-console-sale philosophy is a very recent addition to the marketplace, and something that Nintendo has never done.

To say that's how the game industry is designed is ignorant; to say that's how some have carved out their piece of it would be accurate.[/quote]
I was about to add something similar to my post about how Nintendo basically made the videogame market, but it's suddenly not designed for how they've always done it and they apparently expected every console they're ever made to fail.

EDIT: To reply to mooky again, why would you expect them to suddenly take a loss for this one and if they don't they're expecting it to fail? Do you think they expected the N64 and GameCube to fail as well?
 
The issue with the Wii being so profitable from the get-go is that Nintendo is jeopardizing their own position in the industry. The most important thing for Nintendo right now is to get the Wii in as many homes as possible--not to make a lot of money on launch date. By putting more Wiis in more homes across the world, customers will be more likely to purchase software, namely third-party software which will determine the ultimate fate of the system (like it has with the GC and N64 before it).

The worst case scenario is that Nintendo, in a quest to make too much profit initially, closes off a large portion of the audience who would have bought the system at a lower price point. Then less third-party software gets sold and third-parties no longer find it necessary to invest money exclusively to develop for the obscure system of this generation. Wii then becomes the home of rushed and sloppily ported software and the sales numbers further decline.

I know it sounds like an overly dramatic doomsday scenario, but it's something that Nintendo needs to think about. They should lower the price to $200-$230, get their systems in as many homes as possible, get third-parties on their good side, and be more profitable in the long run.
 
[quote name='daroga']The losing-money-on-a-console-sale philosophy is a very recent addition to the marketplace, and something that Nintendo has never done.[/quote]

Recent as in 10 years ago?
 
[quote name='basketkase543']The issue with the Wii being so profitable from the get-go is that Nintendo is jeopardizing their own position in the industry. The most important thing for Nintendo right now is to get the Wii in as many homes as possible--not to make a lot of money on launch date. By putting more Wiis in more homes across the world, customers will be more likely to purchase software, namely third-party software which will determine the ultimate fate of the system (like it has with the GC and N64 before it).

The worst case scenario is that Nintendo, in a quest to make too much profit initially, closes off a large portion of the audience who would have bought the system at a lower price point. Then less third-party software gets sold and third-parties no longer find it necessary to invest money exclusively to develop for the obscure system of this generation. Wii then becomes the home of rushed and sloppily ported software and the sales numbers further decline.

I know it sounds like an overly dramatic doomsday scenario, but it's something that Nintendo needs to think about. They should lower the price to $200-$230, get their systems in as many homes as possible, get third-parties on their good side, and be more profitable in the long run.[/QUOTE]

But they also have a balance to strike with that odd consumer notion that if it's too cheap it must be crap. The giant gap between the Wii and the other consoles only furthers that notion.

That being said, I honestly do not believe that $50 one way or another would really drive sales or make people think it's a cheap piece of crap. $200 is still a good chunk of change, $250 isn't really that much more. They could've gone either way without a big change in any direction. Why not make money?
 
[quote name='basketkase543']The issue with the Wii being so profitable from the get-go is that Nintendo is jeopardizing their own position in the industry. The most important thing for Nintendo right now is to get the Wii in as many homes as possible--not to make a lot of money on launch date. By putting more Wiis in more homes across the world, customers will be more likely to purchase software, namely third-party software which will determine the ultimate fate of the system (like it has with the GC and N64 before it).

The worst case scenario is that Nintendo, in a quest to make too much profit initially, closes off a large portion of the audience who would have bought the system at a lower price point. Then less third-party software gets sold and third-parties no longer find it necessary to invest money exclusively to develop for the obscure system of this generation. Wii then becomes the home of rushed and sloppily ported software and the sales numbers further decline.

I know it sounds like an overly dramatic doomsday scenario, but it's something that Nintendo needs to think about. They should lower the price to $200-$230, get their systems in as many homes as possible, get third-parties on their good side, and be more profitable in the long run.[/quote]
Do you really think $20 (at $230) would make that much of a difference? Maybe $200, but then was there not another argument way before they announced the price that if they made the price too low people would see it as too cheap and ignore it because of that? They're basically launching this one at the same price they've always launched their consoles they're just bundling in a game and adding $35 to the Japanese price when we'd usually get a $15 discount from it.

EDIT: Bah, I'm going back to reading my physiological psyc, daroga is faster than me anyway :p
 
[quote name='Mookyjooky']Recent as in 10 years ago?[/QUOTE]
Could be, I can neither find figures that prove or disprove that the 32/64 bit generation consoles were sold at a loss. If you or anyone else can put their finger on some data to prove or disprove that point, I'd be interested.

I'm operating under the assumption that Sony and Sega both sold the PS1 and Saturn for a profit. Regardless, we didn't see drastic losses on consoles in the industry until Microsoft started throwing its weight around with the Xbox, thus as a rule rather than an exception, yes, it's a fairly recent development.

[quote name='SpazX']EDIT: Bah, I'm going back to reading my physiological psyc, daroga is faster than me anyway :p[/QUOTE]
Hehe, I got your back ;)
 
Hmmm, that's weird because in an interview with Destructoid.com, Perrin Kaplan said it wouldn't make a profit at launch and that Nintendo would be breaking even.

However, she did say it would be profitable later on.
 
[quote name='Grave_Addiction']Hmmm, that's weird because in an interview with Destructoid.com, Perrin Kaplan said it wouldn't make a profit at launch and that Nintendo would be breaking even.

However, she did say it would be profitable later on.[/QUOTE]
After the region-free confusion, I'm wondering if she slept through a lot of the meetings.
 
[quote name='daroga']After the region-free confusion, I'm wondering if she slept through a lot of the meetings.[/QUOTE]

Or, slept her way through them, if you know what I mean. AMIRIGHT?!
 
[quote name='Mookyjooky']They also own Gyration, who makes their Gyroscopes (The most expencive thing in the Wiimote, is now free)[/quote]

It won't be free. Nintendo still has to spend money on parts, manufacturing, employees, etc. Overall, it will be cheaper than outsourcing, though.
 
Good for Nintendo. I will gladly throw an extra $20-$50 there way for the system instead of paying the $60-$80 for games 360/Sony is charging.
 
Nintendo is smart.. ^.^ Sure the system is not a super big upgrade but then again, it's still an upgrade and has some fun elements to it and they make a profit which means they will have more money for a bigger upgrade later. Slow and steady wins the race. NOT jumping so high that your system starts out at $600. Sony is going to get killed on that one. heh
 
[quote name='gizmogc']Good for Nintendo. I will gladly throw an extra $20-$50 there way for the system instead of paying the $60-$80 for games 360/Sony is charging.[/quote]

Have game prices even been confirmed? I wouldn't be surprised to see the Wii version of Twilight Princess cost $10 more than the GCN version.
 
[quote name='daroga']But they also have a balance to strike with that odd consumer notion that if it's too cheap it must be crap. The giant gap between the Wii and the other consoles only furthers that notion.

That being said, I honestly do not believe that $50 one way or another would really drive sales or make people think it's a cheap piece of crap. $200 is still a good chunk of change, $250 isn't really that much more. They could've gone either way without a big change in any direction. Why not make money?[/QUOTE]

I don't buy the notion that the common consumer would see a low price tag and think that there is a quality issue--especially not with a product containing the Nintendo brand name. Maybe if it was a generic competitor, Neentendu, if you will, then people would think that quality was suffering, but I think that Nintendo's name still carries a lot of weight amongst consumers and that a lower price point could do nothing but bring the Wii into more homes.

Secondly, it's not just the $250 price tag. We also have to factor in the cost of the $60 wiimote controller combo. These two combined will drive away consumers from a launch window purchase--namely me. I was originally going to be there for launch day but the price just isn't right for me. I'm not saying I hate the system or anything, I just need to wait it out a bit longer to see if the purchase is justified. So in my case, the extra $50 and high controller cost factors into my purchase delay.


[quote name='Trakan']Have game prices even been confirmed? I wouldn't be surprised to see the Wii version of Twilight Princess cost $10 more than the GCN version.[/QUOTE]

First-party Wii games are confirmed at $49.99, with no word yet on third-party games.
 
[quote name='Trakan']Have game prices even been confirmed? I wouldn't be surprised to see the Wii version of Twilight Princess cost $10 more than the GCN version.[/QUOTE]
1st party is $49.99, 3rd parties up to them.

That being said, the GCN version of TP may be $40. Who knows?
 
[quote name='Trakan']Have game prices even been confirmed? I wouldn't be surprised to see the Wii version of Twilight Princess cost $10 more than the GCN version.[/quote]

IIRC they said that first party would be $49.99, but third party, of course, does whatever they want.
 
[quote name='gizmogc']Good for Nintendo. I will gladly throw an extra $20-$50 there way for the system instead of paying the $60-$80 for games 360/Sony is charging.[/quote]

really? I get my games for 45 or less...
 
[quote name='basketkase543']I don't buy the notion that the common consumer would see a low price tag and think that there is a quality issue--especially not with a product containing the Nintendo brand name. Maybe if it was a generic competitor, Neentendu, if you will, then people would think that quality was suffering, but I think that Nintendo's name still carries a lot of weight amongst consumers and that a lower price point could do nothing but bring the Wii into more homes.

Secondly, it's not just the $250 price tag. We also have to factor in the cost of the $60 wiimote controller combo. These two combined will drive away consumers from a launch window purchase--namely me. I was originally going to be there for launch day but the price just isn't right for me. I'm not saying I hate the system or anything, I just need to wait it out a bit longer to see if the purchase is justified. So in my case, the extra $50 and high controller cost factors into my purchase delay.[/quote]

Well, the size of the Wii and its packaging may also sway a few grandparents or parents away... but the price is def gonna make up for that.
 
I'm getting sick and tired of people going nuts over how Nintendo is making money on the Wii hardware when they don't know how much money they are making. For all we know they're only making a few dollars per unit.
 
Nintendo actually lost money on the GameCube at launch. Later on they made money however. Nintendo should have taken a loss on the Wii to get a bigger userbase.
 
This clown has been posting the same "Nintendo are cheap bastards" threads on various message boards. I read CHUD.com too, punchy!
 
[quote name='Kaijufan']I'm getting sick and tired of people going nuts over how Nintendo is making money on the Wii hardware when they don't know how much money they are making. For all we know they're only making a few dollars per unit.[/quote]
Good point. Remember that the Wii was supposed to launch at under $250, and it was announced for $249.99. When Reggie says that the Wii will be proffitable, it could be costing them $249.98 to make.

It goes both ways.
 
[quote name='richbastard']' Reggie: Wii makes $$$ immediately ' '

Nintendo’s Reggie Fils-Aime said during a recent interview that the Wii will be profitable “out of the box”.

“We will make a profit on the entire Wii proposition out of the box — hardware and software… That really is a very different philosophy versus our competitors.”

Microsoft has said their Xbox360 loses money on every console sold, and industry analysts think that Sony is certainly loses money on the $600 PS3. But it’s of no surprise that Nintendo will be making money on Wii when it launches, same thing happened with the GameCube vs. PS2 and Xbox.

The main reason the Wii can turn profits from day one is of course the price of Wii hardware. Most of it is built on existing GameCube technology, and is therefore far cheaper, but also less powerful console than its counterparts. ' '


God this is awfull i mean, i rather support microsoft on this one then nintendo.
microsoft and Sony loosing big bucks on this one,but seems like nintendo are the one ones that can easily get away with this and nobody is making a big deal out of it.

http://www.gamespot.com/news/6157690.html


icon_biggrin.gif
only nintendo can get away with this without nobody in the internet making such a big deal out of it.

i wonder,what would happend if this was microsoft or Sony instead.
icon_wink.gif
nintendo are cheap bastards and very errogant i dont support stuff like that.[/QUOTE]

Why the hell do you (or anyone else for that matter, other than Nintendo stockholders) care if they make a profit or not? If you like what they are offering for the price they are offering it, buy it. If not, don't buy it. I don't see how people get so worked up over a company's financials (unless, again, you are a stockholder).
 
[quote name='elprincipe']Why the hell do you (or anyone else for that matter, other than Nintendo stockholders) care if they make a profit or not? If you like what they are offering for the price they are offering it, buy it. If not, don't buy it. I don't see how people get so worked up over a company's financials (unless, again, you are a stockholder).[/quote]

I dunno why people do.

Maybe they think that if a company makes profit on their hardware they are less likely to put out more and better games. If a console is 100% relying on the sales of Software or other periferals, then they may be more likely to try to make bigger and better software in order to get people to purchase more.

It was the case for the Gamecube, it didnt really have a huge lineup of games. And they stopped releasing games after a short time.

Who knows.
 
Maybe I should buy a share of stock just so I dont have to have this discussion anymore.

I appreciate what they do, and I want them to keep doing what they do. If they arent doing well on their business end, I cant feel confident that they are going to stick around. I think if you were a fan of Sega back the day, you mightve wished that they made some better decisions.
 
I can see people being upset that they're turning a profit on each system since it means if they had gone the Sony/MS route, it means the Wii might have been more powerful. Maybe more RAM or a more powerful GPU? I don't mind Nintendo making a profit, but more and more I see the power of the system being a liability. Maybe not tomorrow, or the next year, but 2-3 years down the road the software had better be incredibly innovative or we're all going to be looking down on it compared with the PS3/360.
 
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