Topic: Iwata: Price Isn't Why the Wii U Isn't Selling

[bluelander]

Oh, Iwata...

http://www.nintendoworldreport.com/news/35160

Price isn't the reason for poor Wii U sales, according to Iwata in a recent interview.

While speaking to Computer and Video Games Iwata went on to say that if "price is actually the an issue with [the Wii U], then there is some contradiction between the current sales balance between the Basic and Premium versions."

He also stated that he "[understands] that the real issue is the lack of software, and the only solution is to provide the mass-market with a number of quality software titles."

This is after the company reported selling only 160,000 units worldwide between April and July of this year and some retailers sought to lower the prices themselves.

[VickiL]

I don't see how he isn't right.  After those retailers cut the prices themselves, they still didn't move. 

At this point, I think it's all a lack of software and brand perception (by which I mean, potential purchasers either have no idea what it is, or they do know what it is and snicker at how it's doing).

[NWR_Lindy]

He's partially right. The price is too high for it to sell WITHOUT a large number of highly-demanded titles.  If the console was $199.99 it would sell even with the meager library it has now.

[jglonek]

I don't think it's entirely about price, but it's not entirely about software either. Am I going to buy a $350 system for Wind Waker HD? No. Would I buy a $250 system for Wind Waker HD? Probably.

I still think Nintendo has an easy way to solve the software problem that they just don't seem capable of exploiting: The Virtual Console. If the VC was your one-stop-shop for classic gaming and was loaded up with games (we're talking all the Wii ones moved over already), and as a bonus the games could also be played on the 3DS with a single purchase, I think a lot of people would snap up the system for just that. I know I would.

[Pixelated Pixies]

It might not be the primary reason why the Wii U isn't selling, but price certainly played a factor for me personally back in November. If the console had launched with a lower price point I might have already bought a Wii U (even with the meagre software line-up) simply to play around with the hardware.
 
At this point though I feel like Nintendo have missed the window for a price cut strategy to be effective. Nintendo now have to contend with the Wii U's perception problem, fed by months of bad news, poor third party support and terrible sales numbers: A perception problem which might only be exacerbated by a price cut and all the negative connotations that implies. The 3DS price cut was so successful in part because it came so soon after launch, and managed to turn the tide before it became a wave.
 
I am, therefore, with Iwata on this on. The best means of dispelling the negative perception is not to cut prices (although that's something that might be effective at a later date to boost sales in face of competition from Microsoft and Sony), but rather to release quality software...lots of it...and soon!

[Leo13]

You are correct my friend. I keep hearing people say that after a price cut it will fly off the shelf but there have been sales and they haven't caused units to fly off the shelves.


It needs awesome games and it sounds like they are coming.


Nintendo also needs to expand so that they can pump out more great games especially with all their talk of how HD games have taken longer to make then they expected I hope they expand their current studios or buy 1 or 2 more studios.

[jglonek]

Nintendo also needs to expand so that they can pump out more great games especially with all their talk of how HD games have taken longer to make then they expected I hope they expand their current studios or buy 1 or 2 more studios.

That and where Nintendo said the real next-gen Zelda is delayed because the developers are working on Wind Waker HD. That's a big concern to me. HD remakes are generally side projects that you can throw a few developers at. To have your team devoted to that and delaying a real new Zelda game just doesn't seem right.

[jglonek]

Can't find the edit button! Here's the information about Zelda being delayed for Wind Waker HD:


http://www.engadget.com/2013/06/13/nintendo-eiji-aonuma-interview-zelda-wii-u-e3/

That's not to say a new, radically different Zelda Wii U title isn't coming. It is. His teams are currently developing the next-gen title, but unfortunately it's not at a point where there's anything relevant to show. Progress on the title's also being held up by Nintendo's development resources, or lack thereof. Right now, Aonuma's teams are spread a bit thin across [/size]A Link Between Worlds[/color][/size] and [/color][/size]Wind Waker[/color][/size] [/color][/size]HD[/color][/size], with priority going to that latter title. So before Nintendo can make any serious headway on Zelda Wii U -- let alone make the title's existence public -- [/color][/size]WindWaker HD[/color][/size] needs to be completed. [/color]

[chilenozo]

whoa, it looks like Nintendo is managed by Albert Einstein himself!
 
Question is....what were you doing the last couple of years before WiiU was released?
 
They had lots of data on the 3DS...they knew games (and price) sells consoles, they knew this a whole year before!...also, give me a break, the last years of the Wii Nintendo was releasing close to nothing in terms of AAA videogames, were did all that manpower went?, to the 3DS....yeah sure, you don't need too many workers on the SD graphics of the 3DS.
 
What did you do with all the money you took from the Wii and DS?, you hire more workers?, did you prepare for the HD development cycle?....ehhh no!...and that's Iwata's fault.
 
Nintendo has to AT LEAST start listening to their consumers, get rid of region lock, and unify the accounts so we are not exposed to lose all our digital games if the hardware fails!
Nintendo has to pay attention to the competition, even if they don't want to. Cause the competition wants the Nintendo consumers, so they want to offer things that may steal them from Nintendo, so Nintendo is forced to do something against that.

[Ian Sane]

I agree with Iwata only in the sense that you couldn't say that this was a great product being held back by being overpriced.  In that case price would be the main issue.  The Wii U just lacks the games at this point to be a worthwhile product at any price point that would still be profitable for Nintendo.

Nintendo probably doesn't want a situation where they cut the price now to deal with the lower sales and then have things pick up when the releases pick up and not benefit from the higher price during the sales surge.  They can't cut the price and then jack it back up if demand increases.  A price cut is effectively permanent and they don't want the console to be underpriced when/if it develops into a desirable product.

Though I think the price needs to be cut solely because the price difference between the Wii U and PS4 is too close considering the large hardware difference.  The Wii U just won't be a good deal in comparison.  It would be a selling point for the PS4.

[lolmonade]

He's right that the price isn't the problem right now, it's the lack of compelling new titles that appeal to a broad audience and utilize the Wii U Gamepad in a meaningful way.
 
But with the Playstation 4 coming out in November with only a $50 difference, I think it will become a problem.  Maybe not so much with the broad audience they've been trying to appeal to, but definitely with video game enthusiasts who will be comparing the two and noticing that Nintendo is missing out on a large portion of 3rd party releases.
 
Nintendo is going to find themselves in a difficult position where they aren't providing a large enough value proposition to moms & dads buying systems for their kids at a $350 price point, and gamers who don't see enough of a compelling library to justify another console from Nintendo for at least a few years.

[chilenozo]

This is why I think the price cur matters:
 
- After the E3 presentation Sony show NOTHING that may attract the casual gamers...PS4 is solely based on the core gamer. MS had the upper hand but decide a horrible prohibitive price for the XBOX One...500 bucks won't attract the casuals.
-So the WiiU has lost the casual but SOME of them are still there...yeah sure the tablets and smartphones are stolen some, but the ones who want to play in front of their HDTVs haven't gone anywhere.
 
-So a price drop combined with a new clarifying advertising, plus removing the old Wii's from stores will attract those casuals. Also it will attract those who see the WiiU as a nostalgia VC machine for now (until new hd games come)...also PS4 is just 50 bucks extra from the WiiU...Iwata will be forced to price drop...although he shouldn't talk about it until November...now sales should be going up a bit cause of the new games so iwata should be cautious
 

[Luigi Dude]

Well when price cuts are announced, they're done a few weeks before they happen.  If Iwata was asked about a price drop now in August, but Nintendo isn't going to drop the price until November right before Black Friday, of course he's not going to even hint at one at this time.

This is why I wouldn't put too much thought into Iwata's comments since price cuts are never a subject any company will talk truthfully about.

[Khushrenada]

I honestly don't think Nintendo should cut the price. They are already having a hard enough time battling other issues with this system and cutting the price would probably only make a small difference now but would also hurt them long term.

Honestly, at this point, it makes no sense to ever buy the release of a new Nintendo handheld at launch. With the GBA, the DS and now the 3DS, for three generations in a row, Nintendo has released a better and superior version of that handheld after the first version released. While there were issues factoring into the initial low sales of the 3DS besides this fact, I think it is going to be even harder saleswise in the future as more and more people get used to this behaviour and start waiting on their purchase. They've created a terrible precedent.

Likewise, having cut the price of the 3DS and then to cut the price of the Wii U, having such a price cut occur before either console is even a year old will set another prcedent for the next device Nintendo releases. Why buy it at launch when, in a few months, Nintendo will probably slash the cost? Basically, they are sending out a message of don't buy our product when it releases as we'll offer you something better in a few months. And then if people do start adopting this approach of waiting and not buying, things are going to get more and more dicey everytime they launch any kind of device.

[ShyGuy]

He's partially right. The price is too high for it to sell WITHOUT a large number of highly-demanded titles.  If the console was $199.99 it would sell even with the meager library it has now.

That wasn't true for your Canadian brother ejamer http://www.nintendoworldreport.com/forums/index.php?topic=42298.0

[Wah]

Make a new pokemon stadium! that would sell!maybe...

[BlackNMild2k1]

A real Pokemon MMO exclusive to Wii U w/ side missions and special item hunts exclusive to 3DS would probably spark some interest.

but what the hell do I know? I've never run a multi-billion dollar video game company.

[deathanxiety]

Hi all. First comment on a news story here! I have to agree with Iwata. Every time I go into a video game store,  i always look at the software titles the WiiU has and am always disappointed.

I currently own a 360, PS3 and Wii and have been looking at getting a WiiU but there haven't been any games that make me want to get one. At the moment I'm waiting for what Nintendo will do to Zelda on the WiiU which will make the decision for me.

Hopefully they can get some more software titles out because if the new Zelda doesn't hit the mark for me then i won't be getting one. It'll be the first Nintendo console I haven't owned since well the NES.

[Miyamoto]

Pricing is definitely a factor but if you're already selling at a loss then it's probably best to pretend it isn't.

[Mop it up]

If the word "only" were somewhere in this sentence then I would agree. The Wii U needs games before it will sell at any price. But, given the extremely bad position it's currently in, it needs everything they can throw at it to recover. Nintendo shouldn't risk some sales to make a little short-term profit by keeping the price the same; the double whammy of big holiday titles plus an advertised new price should ensure that the Wii U starts selling the numbers it needs to survive.

The Basic set is proof of nothing because it's a bad value compared to the Deluxe, and everyone knows it. Plus, black is a more popular colour than white.

Why buy it at launch when, in a few months, Nintendo will probably slash the cost? Basically, they are sending out a message of don't buy our product when it releases as we'll offer you something better in a few months. And then if people do start adopting this approach of waiting and not buying, things are going to get more and more dicey every time they launch any kind of device.

I might agree with you... except this sort of logic doesn't apply to games. Nearly all $60/50 games can be found for half price or less in a few months, yet this hasn't stopped people from lining up on day one willing to pay full price. People still don't wait for the price drops even though this has been common for years now, so people should be aware of it.

Besides, devices like phones get huge price drops and new models all the time, and this doesn't stop people from paying huge prices when they first come out. This is common knowledge, so I think people are just willing to pay more to get something now than have to wait.

[the asylum]

To me, solving the Wii U's woes is a simple three step process:

1. Acknowledge that there's a problem (some companies haven't done this until much too late; see also: Saturn, Sega)
2. Identify why the problem is happening (severe lack of quality games)
3. Administer appropriate solutions

Nintendo's already done the first two steps. Unfortunately, their idea of "appropriate solutions" include annual releases of Mario Party

[Luigi Dude]

Nintendo's already done the first two steps. Unfortunately, their idea of "appropriate solutions" include annual releases of Mario Party.

Only the Mario Party being released this year is for the 3DS, not the Wii U.  Plus the series hasn't been annual since Mario Party 8 in 2007.  There was a 5 year gap between Mario Party 8 and 9, and the gap has been 6 years between Mario Party DS and the upcoming 3DS game.

Yearly Mario Party games on the same console ended when the Gamecube did.  Not sure where you keep getting this annual Mario Party nonsense from when that hasn't been the case for over a generation now.