Last week, Nintendo announced it was significantly cutting back its sales projections for Wii U hardware and software. That prompted yours truly — along with a number of other industry watchers — to suggest it might be time for a Wii U price drop.
Unfortunately, it doesn’t seem like that price drop will be coming any day soon. In a recent interview, Nintendo president Satoru Iwata says there are no plans to reduce the Wii U’s price.
According to Iwata, Nintendo feels like it’s already taking enough of a hit on the price of the Wii U, which launched late last fall.
“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,” Iwata said. “I would like to make this point absolutely clear.”
Iwata believes that the problem is not tied to the Wii U’s value, but in Nintendo’s inability, thus far, to communicate “the value of our product.” Iwata says that part of that communication problem is due to Nintendo’s inability to clearly convey to consumers what makes the Wii U so special.
This was hardly a problem for the original Wii, which was clearly distinct from previous and competing consoles in its use of motion-sensitive hardware.
“To put it another way, we delivered Wii U to those consumers who we thought would be the first to buy it, but information has not successfully been passed on to those consumers who we think will be the next people to buy it,” Iwata added.
“This must be one big factor with which Wii U could not maintain its momentum.”
Iwata says he plans to help correct this issue as soon as possible.
So, what do you guys think? Is Nintendo making a mistake in dismissing calls for a price drop?