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Nintendo rules out Wii U price cut despite 'lack of momentum'

Iwata says firm must communicate console's value to the wider public

Nintendo president Satoru Iwata has ruled out a Wii U price cut despite lower-than-expected sales of the new console.

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Yesterday Nintendo released a disappointing set of financial results for its third financial quarter, forecast an unexpected operating loss for the business year and lowered its Wii U sales guidance from 5.5 million units to four million.

Global Wii U sales hit three million units between the system's November 18 launch and the end of December 2012.

Speaking to investors about the console's performance, Iwata said "sales of Wii U progressed favourably in the beginning except for the imbalance of supply and demand between the Wii U Deluxe set and the Wii U Basic set. However, since we were unable to incite enough excitement in society, we have failed to maintain its momentum after the turn of the year."

The executive continued: "We have yet to communicate its value to the wider public. 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.

"In addition to this, because of some delays on the development side, we were unable to continuously supply software at the beginning of this calendar year. This has further upset our scenario for market penetration, for which momentum is the key."

Nintendo already makes a loss on each Wii U unit sold, and Iwata went on to flatly rule out the possibility of a price cut in the near future.

"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. However, given that it has now become clear that we have not yet fully communicated the value of our product, we will try to do so before the software lineup is enhanced and at the same time work to enrich the software lineup which could make consumers understand the appeal of Wii U."

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