Nintendo Global President Hesitant About Enacting Wii U Price Cuts
It has been a rough year for Nintendo when it comes to Wii U sales. After third party publishers such as EA and Ubisoft have announced that they are not looking to release content on Nintendo’s console until sales reach a satisfactory level, the Wii U has found itself in quite a tough situation. After the E3 announcement of the PS4’s insanely low $399 price, questions have been raised as to whether Nintendo will decide to lower the cost of the Wii U in order to compete, especially considering their sales have been quite sub-par.
Wii U models currently price $299-$399, depending on hard drive space. According to Nintendo though, this price is less than what they should be selling it for. Because of the fact that they need to remain competitive and try to sell their console at a consumer-preffered price, they are actually selling the console for less than what it costs to manufacture the consoles. Basically, they are losing money, and not gaining it back from sales.
When it comes to a price drop, Nintendo Global President Satoru Iwata told CNBC during E3, “Because from the very beginning we came up with a very aggressive price point. We do not think [a price cut] is a very easy option to take.”
“We are to blame,” says Iwata, “We relaxed our [marketing] efforts, so the consumers today still cannot understand what’s so good and unique about the Wii U. As long as people have hands-on [experience], they can appreciate the value of the Wii U, but because there’s not software that’s simple and obvious for people as Wii Sports for the Wii, potential consumers do not feel like trying the Wii U. Our challenge today is with the software lineup we are introducing now, we have to encourage [people] to experience the Wii U in the first place.”
It does not seem as though a Wii U price cut will come any time soon, but until then, hopefully we will see a release of new content and third-party publishers willing to release games on the Wii U consoles, as Nintendo is learning what they are doing wrong and attempting to step up to the plate in order to get the Wii U in the households of gamers everywhere.