Nintendo's Wii U Will Be Sold At a Loss

another random user tips news that Nintendo will be selling its upcoming Wii U console at a loss in the hopes that spurring earlier adoption will work out for the company in the long run. This differs from the Wii, which made money from the start, but it's a similar strategy to those used with the Xbox 360 and PS3, which both lost money for their companies at release. "The Japanese firm's president revealed the news after the firm cut its profit forecast. It marks a change in the company's business strategy. The decision to abandon the prospect of immediate profits in order to maximize later earnings is part of a growing trend in the tech world. Nintendo might have altered course to take advantage of the fact that neither Microsoft nor Sony have announced their next-generation consoles yet. Its pursuit of the more casual gamer means it has also had to take account of the keenly priced tablet market which attracts a similar consumer."

Comments

Why aren't people more hyped about the Wii U?

[crazyjj]

The controller raises a lot of interesting possibilities (though it's a little bulky for my tastes). And, unlike some, I think that the $300-$350 price tag is fine (compared to the $600 debut price tag of the PS3, that's a frickin' bargain bin price!). But I haven't been hearing a lot of buzz about it, considering it's supposed to be launching next month. I know it's supposed to be as powerful as the PS3/360. And, of course, I know about the controller. But I haven't heard much about the debut game lineup. And even gamer podcasts and shows don't seem to be giving it much attention.

Frankly I think Nintendo, for all their faults (most notably, their admittedly piss-poor online support), kind of gets the short-shrift in the gaming community. Their systems may not have the cutting edge CPU's and GPU's, but they do what they do pretty well. And they offer a pretty good bargain most of the time. I think they're underrated myself and wish they got more respect. Not every console and handheld has to cater 100% to hardcore gamers, you know.

Re:Why aren't people more hyped about the Wii U?

[Anonymous Coward]

People aren't more hyped because the console is as powerful as current gen consoles but costs more.

The special controller is crazy expensive and you are only going to get one per system. Online play is poorly supported, you can't go out and purchase all of the old school Nintendo games through an online market for the system (like literally everyone who games wants to), and the system itself doesn't have as rich a supported application set as the PS3 and the Xbox360.

That's why people aren't more excited.

Re:Why aren't people more hyped about the Wii U?

[malraid]

Dude, chill... It's only a new console. Now, if Apple were to release an iPhone in a different color, that would be real news!

Re:Why aren't people more hyped about the Wii U?

[demonbug]

The controller raises a lot of interesting possibilities (though it's a little bulky for my tastes). And, unlike some, I think that the $300-$350 price tag is fine (compared to the $600 debut price tag of the PS3, that's a frickin' bargain bin price!). But I haven't been hearing a lot of buzz about it, considering it's supposed to be launching next month. I know it's supposed to be as powerful as the PS3/360. And, of course, I know about the controller. But I haven't heard much about the debut game lineup. And even gamer podcasts and shows don't seem to be giving it much attention.

Frankly I think Nintendo, for all their faults (most notably, their admittedly piss-poor online support), kind of gets the short-shrift in the gaming community. Their systems may not have the cutting edge CPU's and GPU's, but they do what they do pretty well. And they offer a pretty good bargain most of the time. I think they're underrated myself and wish they got more respect. Not every console and handheld has to cater 100% to hardcore gamers, you know.

I think you've kind of answered your own questions. $300-$350 for a console with the same power as consoles that have been out for five years (and that you can get for less). A focus on casual gamers for the previous console generation (or two), which doesn't exactly attract a lot of attention in the gaming world. A control scheme significantly different from the other main consoles, which means it will only really shine with games exclusive to that console - but a worrying lack of information on launch and first-party titles doesn't exactly instill confidence that there will be a decent library.

Now news that they are going to release an under-powered console, with a limited selection of games, at a loss. That doesn't exactly help me feel confident about the future of the console (or of Nintendo, for that matter). It will probably do just fine, but I don't really see much to get excited about. I know lots of people that bought a Wii, used it for a few months, and basically gave up on it because every game that was released that made use of the unique control scheme seemed to be more of a tech demo than a game. Maybe some really cool games did eventually come out, but if so it was long after interest had waned. The WiiU seems to be a repeat of that - interesting concept, great potential, but unless they have some full-fledged, finished games at launch that make good use of the controllers, it's not going to get much attention from the gaming community.

Re:Why aren't people more hyped about the Wii U?

[nedlohs]

It's not unfair, it's an expected part of the intentional business decision. If the casual market has moved on to tablets and smartphones though that very successful short and medium term decision mightn't have been so great in the long term.

Re:Why aren't people more hyped about the Wii U?

[trdrstv]

People aren't more hyped because the console is as powerful as current gen consoles but costs more.

Then why are 3rd party games running at 1080p60 instead of 720p30 like they are on the PS3 / 360 ?

The special controller is crazy expensive and you are only going to get one per system.

And it's being designed so you only have to use 1 to play the games.

Online play is poorly supported, you can't go out and purchase all of the old school Nintendo games through an online market for the system (like literally everyone who games wants to),

?? The Wii-shop from the Wii carries over to the Wii U and you can port over all your downloaded games from the Wii to the Wii U. Seriously there's hundreds of games (including most old school nintendo games) that you can download.

and the system itself doesn't have as rich a supported application set as the PS3 and the Xbox360.

Probably not right away, but they are launching with: Amazon, Hulu, Netflix, Universal remote control, and a browser. What other applications are on PS3 / 360 that you feel you'd miss ?

Re:Why aren't people more hyped about the Wii U?

[killmenow]

I was going to down-mod you as troll or flamebait but fuck it...I'll respond instead. I'll probably regret it later. I was a Wii early adopter. Had it reserved ahead of schedule and skipped the lines to just walk in and pick it up on day one. We have probably 50 games for it. Up to that point, I'd never bought a current gen console. I've never invested so much money in a console platform. I bought a PS1 when the PS2 came out. But when the Wii was coming out, I couldn't wait. Because it was that interesting. It was a game changer. Now you've got kinect and move and you can see how this thing forced Sony and Microsoft to innovate.

And our Wii gets played almost daily. Between my kids, the wife, and me, it gets plenty of use. Still.

So you think the Wii sucks. You and your XBOX/PS3 brethren, most likely. But "sucks" isn't an objective measure, is it? It doesn't suck...for me and my family and our friends and their families because I know a lot of them that still play.

But I have ZERO interest in the Wii U. Not because it sucks. But because...well, why should I care? It's a Wii with a better CPU & GPU and a tablet controller. Okay. But people who bought the Wii in the first place aren't graphics snobs. Oh, wait. Many of them must be, right? Because 80 million people have dust covered Wiis that they don't play with any more. What a ridiculous statement. If that were even remotely true, the market for new & used Wii games would be nonexistent. Any new game released (if there were any) would be sold for $1.99. And used games would sell for a nickel. But last time I walked through a local Game Stop there were still rows and rows of shelves with new & used Wii games still selling for typical prices. Because it's still a viable market. Because people still use their Wiis.

But again, what does the Wii U offer? I don't care about super awesome triangle counts and NOW WITH EVEN MORE PIXEL SHADERS!!! Wooh, who gives a fuck?! People who just want to look at a screen and think, "sweet jesus that's a beautiful looking game." Guess what? That's what my gaming PC is for. It can drive higher than 1080p resolutions and do multi-monitor gaming and makes the power of the XBOX/PS3 look exactly like they are: years old and obsolete.

Nintendo forgot their market. The new controller is the *only* remarkable feature of the Wii U. And it's not that big of a deal, really. Sorry to say it, but there's just nothing revolutionary about it. It's an evolutionary product. It's a "Version 2.0" that should be a point release if we are honest about it. And it gets exactly the hype it deserves...which is very little.

Re:Why aren't people more hyped about the Wii U?

[Eponymous Coward]

People aren't more hyped because console gaming just isn't that interesting anymore. In our house we have a Wii and a PS3. My kids have iPod touches, my wife has an iPad. Lots of video games are played in my house - all of them on the handheld devices. I'm the only one who ever powers up the PS3 anymore and that's to play Rocksmith once or twice a month.

The console makers aren't just competing with each other, they are also competing with platforms that have free and very low cost games. I really have a hard time spending more than $10 for a game these days. There are just too many awesome low cost choices out there these days and I don't have enough time to take advantage of all of them.

Re:Why aren't people more hyped about the Wii U?

[Anubis IV]

Thankfully, we don't rely on the "people" you cite for informed decisions, since clearly they are incapable of forming opinions through a rational thought process.

Also, it's only a gimmick if it's used as a gimmick. The Wiimote is not a gimmick (unlike the ridiculous number of gimmick peripherals Nintendo puts out every generation). It's what makes the platform what it is, since it defines and informs the behavior of nearly every game. That stands in contrast to the PS3's Move, which was only ever a slap-in feature that served no important purpose for the platform as a whole, or even the Kinect, which, while very impressive technologically, doesn't do much outside of a handful of games (though that sounds like it may change in the next generation with Kinect 2?).

Long story short, grow up a bit more and stop buying into marketing. Though I'll readily admit that the last few years on the Wii haven't been great for more-than-casual gamers, it still had quite a few excellent titles that came out for it in the first few years, and was well worth the purchase price. When you're mature enough to think through these things with a degree of intellectual honesty while analyzing the actual good and bad aspects of the various alternative choices, you'll be a lot happier (as will those around you, since nobody likes vitriol and rabid fanboyism).

Disclaimer: I own all three current-gen consoles and am currently not planning to pick up the Wii U since it can't act as a drop-in replacement for my Wii (lack of Gamecube support, of which I still have several games that I want to work through "soon").

Re:Why aren't people more hyped about the Wii U?

[Randle_Revar]

Because for all the Wii U's failings it isn't a pointless pile of shit?

Why the flying fuck would I want an iPad when I could buy an android tablet or an Asus transformer or something, and hack a real OS on there?

And yes, I am the Wii U's target audience, even if they are not convincing me to buy one right now.

Re:Why aren't people more hyped about the Wii U?

[Cinder6]

A spec jump does something important for Nintendo. As the casual market moves on to tablets and smartphones, they need to gain back favor with "core" gamers. The Wii's low specs in comparison to the 360 and PS3 really hindered it in this area, because almost every time a game came out for all three platforms, the Wii version paled in comparison to the other two--both from a graphical standpoint and because the games weren't designed with motion controls in mind to begin with. It becomes even more obvious that Nintendo are looking to court the traditional gamers when you look at the Pro controller, which looks just like a 360 controller.

The core gamer audience wants Halo, Call of Duty, etc., and now Nintendo will not only be able to say they have them, but that they have better versions of those games. Will it pay off? Time will tell. I hope it does, because even though I've been greatly disappointed with Nintendo this last generation (both with the Wii and the DS/3DS), they're much more innovative and take bigger risks than Sony and Microsoft. The Wii helped Nintendo get a ton of cash, because it always sold at a profit. Frankly, they probably needed it after being slaughtered by Sony for two generations. They can afford to lose money for a few quarters, and I hope they'll be able to weather out the storm and come out on top. Of the three, I trust them the most not to dick around with the customer.

The real worry for Nintendo is that Sony and Microsoft will probably come out with even more powerful systems, and the Wii U will be in the same spot as the Wii: significantly weaker and receiving inferior ports.

Seems expensive?

[NinjaTekNeeks]

Article mentions 250GBP for the unit which is about $ 400 US. That seems like a hefty tag for a Nintendo, which historically has been cheaper than MSFT and Sony. Game pad is another 160 $ for standalone play.

500$ buys me about 10 new video games or 15-20 sale games for my 360 or steam account, I probably won't be running out to pick this up.

Re:Volume!

[Desler]

They make it up by their higher profit first-party games and licensing fees from third-party developers.

Real power?

[SuperMooCow]

I've read some comments that say the Wii U is "as powerful as an Xbox360/PS3", however I've also read articles that mentioned the Wii U is two generations ahead of the other two consoles... so, which one is it?

Butthurt Xbox360 and PS3 owners spreading FUD about the new Nintendo system now that they have to comment about how gameplay is more important than graphics, or dumbass writers who will say anything to have people read their articles?

Do we even know the specifications of the Wii U's GPU to make such comparisons?

Re:Real power?

[Narishma]

It has more memory (about twice as much, if you remove the 1 GB reserved for the system) and a more modern and faster GPU than the PS360 but the CPU is lacking even compared to that of the 360. In the end it makes the console a bit faster but not by much and it will have to compete with the next generation of Sony and MS consoles which are expected in about a year or so.

Re:Real power?

[trdrstv]

I've read some comments that say the Wii U is "as powerful as an Xbox360/PS3", however I've also read articles that mentioned the Wii U is two generations ahead of the other two consoles... so, which one is it?

Butthurt Xbox360 and PS3 owners spreading FUD about the new Nintendo system now that they have to comment about how gameplay is more important than graphics, or dumbass writers who will say anything to have people read their articles?

Do we even know the specifications of the Wii U's GPU to make such comparisons?

The Wii U being "As powerful as the PS3 / 360" is FUD. It's more powerful and really that isn't hard to do on a budget, considering those consoles are both over 6 years old. One other telling factor is if you notice the 3rd party games that are multiform COD, AC3, etc... are running natively at 1080p60 on Wii U and not on the PS3 / 360. This is also with first generation non-optimized code for the Wii U, pretty safe to say it IS more powerful than it's Current gen rivals.

some specs: http://en.wikipedia.org/wiki/Wii_u#Technical_specifications

It's not that it's underpowered...

[realmolo]

It *is* a little underpowered for a system coming out in 2012, but honestly it's powerful enough. We've reached a bit of a plateau with graphics on consoles. PS3 and 360 games look *damn good*. If the WiiU can do that, people will be happy.

The bigger problem for the WiiU is that I think the console market has changed. People have SO MANY gaming options these days that game consoles just aren't as interesting as they used to be. Especially for the price. Nintendo wants to sell this thing for $400, but that buys you an iPad.

Nintendo, Sony, and Microsoft need to realize that they don't have the gaming market to themselves anymore. Not like they used to, anyway. And in this economy, cost is king. If they think they are going to be selling new consoles for $400, they are nuts.

Honestly, I think that both Sony and Microsoft should keep their current consoles alive indefinitely. I mean, why not? Keep lowering the price, and keep them alive. I'd love to be able to pick up an fully-loaded 360 with a Kinect for $100 in 2016, and still have new games coming out for it. Like I said, we've reached a bit of a plateau with consoles. Why not stay on that plateau for a while?