According to Nintendo, the Wii U is already selling at a loss. Fans and publishers are asking for a drop in the price of the Wii U. Obviously, having a price drop would push more units. Nintendo is in a situation where they are unable to drop the price for at least 6 months. Fils Aime, President and chief operating officer of Nintendo states, “As soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive. In the end, the business model is still to drive the install base of hardware, and then to drive a strong tie ration with all of the other software and experiences for the consumer, and if we’re able to do that, then we will create significant profit for the company.” 

If Nintendo drops the price of the Wii U, causing investors to question if Nintendo “still has it” could lower their  stock. Investors will begin doubting the leadership of Nintendo since this will be the second console by Nintendo to have a price drop in a short period of time. Nintendo’s stock is averaging at a low $12 when back during the Wii stage, it was at averaging at a high of $71.

Consumers who purchased the original Wii might see the Wii U as overpriced for software that just isn’t there. Systems are not selling as expected, so Nintendo’s best bet is to wait until Pikmin 3, Lego Undercover, and Wonderful 101 come out and hope that the console starts moving than.

Source: N4G

About The Author

Vanessa F

Vanessa is the Founder/CEO of Gamer Assault Weekly, LLC. She is an active member of the industry having worked with Warner Bros. Entertainment, Ubisoft, id Software, and CSA. She spends her time working on the site, attending as many gaming conventions as she can, and playing with friends on all systems.