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Wii U Profitable For Nintendo After Single Game Sale

Posted on Wednesday, November 21 @ 06:47:29 PST by Alex_Osborn

Many have argued that the Wii U is a bit overpriced. At $350 for the deluxe version, it certainly isn't in the normal price ballpark for a Nintendo console, but until now I've decided to give Nintendo the benefit of the doubt—after all, the company is selling the system at a loss.

However, my understanding ends now, as Nintendo's Reggie Fils-Aime has just revealed to Mercury News that after the sale of a single game, the Wii U re-enters profitability. "As soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive," he said. Clearly they aren't selling the system at very much of a loss.

"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. And if we're able to do that, then we will create significant profit for the company," he added.

What do you think? Is the Wii U overpriced? Let us know in the comments below.

Tags:   Nintendo, Wii U

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