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Nintendo To Initially Sell Wii U At A Loss

It's not news that Nintendo's upcoming Wii U system will not make money for the company right out of the game – that's par for the course for systems these days. However, president Satoru Iwata has explained why.

"...The Wii U hardware will have a negative impact on Nintendo's profits early after the launch because rather than determining a price based on its manufacturing cost, we selected one that consumers would consider to be reasonable," he told investors yesterday when also discussing the company's fiscal outlook. Yesterday, the company downgraded its fiscal forecast for the year.

The Wii U's price was a hotly contested topic before it was announced, with many in the industry speculating on what the company could and could not get away with. We'll see how fine of a balance Nintendo strikes when the launch dust settles and perhaps in a few years (as is customary for some other systems) the Wii U starts to make its money back.

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Comments
  • smh!
  • Hmm... I know this is typical for systems, but I wonder if this will be a problem for them. I remember the Wii was initially selling for more than its production cost. How long before they make profit on the WiiU? Was the Gamecube profitable out of the gate?
  • Interesting. It's no wonder MS and Sony have been slow to move to the next generation. If Nintendo has to take a loss on their nextgen to bring it to market, then I predict Sony and MS will have to take MASSIVE losses on their hardware to get it out the door. I doubt either company is rushing to negate their profits in this economy.
  • this is just happening cause they want to move way to fast insted of taking it slow

  • Given all the possibilities of this system- touch pad features, private screens for split-screen gaming, the new hi def feature and Nintendo's commitment to bringing "hard core gamers" back, I believe that the Wii U will prove a worth while venture for Nintendo.
  • Just like every other system initially does. Nothing to see here.
  • I would bet a considerable chunk of the production cost goes to the controller. With that said, it makes me wonder what the production costs will be for the next Xbox and Playstation. I still believe that if people are really expecting a huge leap in hardware power, as big as last gen's, they're in for a rude awakening. Either A, the consoles won't be as powerful as expected to keep costs down, or B, they're going to be really expensive. We'll have another 599 US dollars situation.
  • I really hope this sells well; I know the initial launch consoles are sold out, but what if it becomes a commercial failure? Nintendo could be in some serious debt.
  • Do console manufacturers (Sony Microsoft and Nintendo) always lose money after whatever system launches day 1?
  • wasn't excited for Wii. not excited for this.
  • Plus they arent going to have many games released for it at its launch so it wont do it really any good in the beginning until they get at least 50 to 100 games for it.
  • This does not come as a surprise. I believe the Gamecube was the first time Big N lost money on consoles at the console launch, though not much. It was estimated that Sony lost around $200 each PS3 sold at launch. For the Wii U, don't forget that analyst have said they believe a second gamepad alone with run up to 100 clams, which is about a third of the entire cost of the console. I am glad to see Nintendo ask a lower cost for the console and take the hit out of the gate.
  • I'm still at a loss as to what it's selling points are, outside of that awesome Lego game.
  • :(

  • Not a big surprise. I haven't seen much on the wii u as of yet but for 299 for 8gb. And 350 for 32 gb it seems pretty pricey to me. Just to compare I could get a 500 gb ps3 for 299 besides the controller there probably isn't a big differ ce between the two.
  • Kind of late on this one aren't you G.I.? It's okay though.
  • Well that was expected

  • Much of the new hardware coming out (beside game consoles, things like the Nook or Kindle) is selling at a loss. Did the original Wii sell at a loss?
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