Nintendo Wii U will sell at a loss

Nintendo will sell their next console, the Nintendo Wii U below the price needed for its manufacture, in order to be able to compete with the Sony console.

Nintendo had never followed this practice but the fact that the Sony PS3 do in almost forces the company Nippon to do the same. Nintendo was able to maintain prices above the cost of production and have a smaller number of sales or otherwise lower the price to a value that consumers find more appealing, have a little damage but gain more in future with the sale of accessories and games.

This decision has been communicated by the president of Nintendo, Satoru Iwata, shareholders, having also taken the opportunity and announced that it was bad news that the company`s profit this year will not reach the expected value. Already last year the company`s profits have plummeted due to sales of the 3DS are not what the company expected leading to the sale price was reduced.

What greatly increases the cost of production is the new Gamepad which has much higher cost than a typical command console. Remember that the new command has a touch screen, a front camera, speakers, amongst other options.

Despite that Nintendo expects to sell 5.5 million consoles and 24 million games until next March.

picture is not mine

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