Wii U price cuts not being considered, Nintendo President Satoru Iwata says, despite low sales in 2012

By on Jan 31, 2013 in Asia, Business, Gaming, Technology Comments

No Wii U price cuts will be made. This is what Nintendo President Satoru Iwata reportedly emphasized on a meeting with investors, a day after the Japanese gaming giant company announced that its sales declined in the three quarters of 2012 and cut its sales projections for 2013 for the Wii U, 3DS, and DS devices.

Nintendo Wii U

Nintendo Wii U
Credit: Nintendo.co.jp

According to TheVerge.com today, Thursday, January 31, 2013, Mr. Iwata that cutting prices for Wii U is not their option to increase their future sales, which now costs $299.99 for a basic set and $349.99 for a premium package; noting that the company has learned hard lessons from what they did previously to the price of 3DS.

Initially, the price for the Nintendo 3DS was $249.99 when it was released on February 26, 2011, but the company was forced to reduce it to $169.99 on July 28, 2011, or six months later, due to disappointing low sales. On July 28, 2012, Nintendo released the Nintendo 3DS XL, a partially redesigned version of the original version.

“With Wii U, we have taken a rather resolute stance in pricing it below its manufacturing cost, so we are not planning to perform a markdown. I would like to make this point absolutely clear. We are putting our lessons from Nintendo 3DS to good use, as I have already publicly stated.” Iwata was quoted in the report.

Apparently, Mr. Iwata added that the current price of Wii U is reasonable enough and noted that its low sales is partly due to the failure of Nintendo to “properly market” the product’s advantages to consumers; and that more work was needed to convince the consumers to buy them.

On Wednesday, Nintendo released its financial results for nine months, which ended December 31, 2012 and cited an operating loss of 5.8 billion yen (around $63.8 million), and a 2.4-percent net sales loss from 556.1 billion yen ($6.1 billion), December 31, 2011, to 543.0 billion yen ($5.9 billion), by the end of last year.

Meanwhile, Nintendo also lowered their net sales forecast for the fiscal year ending March 31, 2013, from 810.0 billion yen ($8.9 billion) down to 670 billion yen ($7.35 billion); but increasing their estimated net income target from 6.0 billion yen ($65 million) to 14.0 billion yen ($153 million).

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