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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One other thing i think that needs mentioning...I think this time they are really trying to aim more towards the hardcore gamer (I hope) ZombiU gives this promise as well as a solid Black Ops game ACIII and others...they need to hit it out of the park with Bayonetta and maybe people will start believing.
I think the Wii U is a solid console and offers some neat features. Hopefully going into next year we will see more from developers and some great titles.
So how much at a loss are they selling the console, then?
If after ONE game purchase, they make money then that means that they aren't selling it at that much of a loss, right?
If the Wii U will make Nintendo money by only purchasing one games. That just shows how cheap the hardware is. Already out dated. Nintendo suck as always. I hate Nintendo and their crapware
Epic win for nintendo.
Only if Nintendo can get some kind of achievement/trophy style set-up to reward gamers of their commendations...
Not surprising. But I'm still not getting one.