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Wii U Will Quickly Be Profitable

Traditionally a hardware developer takes a hit on hardware sales so that it can release their console at a reduced price, eventually making up for the loss in software sales. Nintendo's Wii U doesn't take much to turn a profit, however. If you buy one game with your Wii U, you've made Nintendo money.

In an interview with Mercury News, Nintendo of America President Reggie Fils-Aime said that Nintendo was set to sell sell 5.5 million Wii U units this fiscal year, which means that Nintendo will be making a lot of money this year, because Fils-Aime also said, "The business model doesn't change dramatically, in that as soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive."

"In the end, the business model is still to drive the install base of hardware, and then to drive a strong tie ratio with all of the other software and experiences for the consumer," added Fils-Aime. "And if we're able to do that, then we will create significant profit for the company."

Looks like this could be a good year for Nintendo.

[Source: Destructoid]

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Comments
  • And people said this would tank.
  • Cool.
  • If I had $350 to blow I would definitely buy the Wii-U. Will probably get one at some point soon.

  • I have all the launch titles. Haven't playued them all (only Nintendo Land and ZombiU), but I will get around to it. The WiiU is so worth the money, really.
  • Dang, I need to get a Wii U. So many cool looking games out for it.
  • Once some good games come out I'm getting it.
  • This system will destroy whatever Sony/Micro come up with.
  • Here here for Nintendo!

  • Given this news, perhaps I'm wrong in thinking Nintendo won't do a price cut by next winter. If they profit this quickly on the Wii U, then maybe the price can drop next winter when the other two bring their machines out.
  • Good for Nintendo, especially since hype for the Wii U has been sparse.
  • I'm glad for Nintendo. They get a lot of hate, but I still find their approach to gaming preferable to other big names in the industry
  • this is cool for Nintendo. but this shows. they didn't put much into the Wii-U. you Nintendo fanboys can attack me now.
  • Interesting to hear it only takes one game sale to turn a profit, but, it's hardly surprising given all the information Nintendo's provided in the past concerning the cost of the system. It's was almost a forgone conclusions that this was the case.
  • it still prints money....just not the usual way
  • Hopefully this will encourage more developers to work on the system.
  • What... a good year and big money at the same time as a brand new console releases?

    I never would have put the two together

  • Quality hardware costs money. If their loss on the system can be made up with 1 game purchase that means they are not using all that amazing of tech(especially when you take into account the additional cost of the controller). On paper when you are looking for quick profits this is a smart move.

    However in the long run I think this is a bad move. Why were most big multiplatform games not on the Wii? Yes how Nintendo does business had something to do with the but it was mostly because of the systems lack of power. Nintendo has sold roughly what 100million Wiis, publishers would do most anything to get their games on a system with this large of an install base. They did not do it because they would need to almost entirely recreate the game just to get it to function on the Wii.

    My concern is Nintendo has again cut corners in terms of tech. If we saw the nextbox and PS4 this year odds are both would be a bit better in terms of power than the Wii U, which would be fine. However if we now add a year or two of hardware improvements into the equation we again have a console generation where Nintendo is behind in terms of raw power in their console.

    I think the Wii U is going to close the gap a good bit with Nintendos competitors. However I fear that in 4 or 5 years publishers will again need to decide if they want to make a game that runs on the PS4 and Nextbox or on the Wii U. The difference in hardware will be large enough that as we start to tax the systems to their max the Wii U will again fall behind. It seems to me it may have been in Nintendos best interest to eat a bit more of a loss on the console at launch, even if it was only another $10 to go from 2 gigs of ram to 4.
  • There are a few left on store shelves, and I already see some people worrying over that and others speculating doom. I would like to remind everyone that the original wii sold out, but it was released with a huge shortage. Also the wiiU has only 1 advertisement right now that they only recently played before it's launch.
  • Obviously people are gonna buy games for their Wii U, so obviously Nintendo is gonna make money.
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