The lights are on
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.
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