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Home News Wii U Profitable For Nintendo After Single Game Sale

GAMING NEWS

Wii U Profitable For Nintendo After Single Game Sale

Posted on Wednesday, November 21 @ 06:47:29 Eastern 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.

[Via]
Tags:   Nintendo, Wii U


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Comments
  • Sourdeez
    Sourdeez
    Joined: Feb 2012
    Posted: Nov 21st, 2012 at 6:53 am
    And for most it will be mario.
    0 1
  • danielrbischoff
    danielrbischoff
    Joined: Nov 2009
    Posted: Nov 21st, 2012 at 11:56 am
    Breaking news: It's a Nintendo console!

    Thumbs up.
    0 0
  • wildmario
    wildmario
    Joined: Jan 2007
    Posted: Nov 21st, 2012 at 7:32 am
    That's an interesting strategy to make. One game puts the revenue back in the green. And yeah $350 is a bit pricey. Maybe $300 tops would be better.
    0 2
  • Bras
    Bras
    Joined: Jul 2008
    Posted: Nov 21st, 2012 at 8:26 am
    That makes me wonder what the pricing for next-gen Xbox/PS hardware and software should be.
    0 0
  • usaglory
    usaglory
    Joined: Mar 2009
    Posted: Nov 21st, 2012 at 8:46 am
    This leads me to think that they could've easily sold the console for $249 and $299, putting them in the green with maybe two games sold. That way they would have had a better chance of getting a big install base and let's face it, everyone is gonna buy at least two games. Seriously, one game? Unless you are buying the Wii U because it goes nice with your drapes and carpeting, everyone is gonna buy at least one game, so why not risk a lower price point and take a chance on people buying at least two games?
    0 2
  • danielrbischoff
    danielrbischoff
    Joined: Nov 2009
    Posted: Nov 21st, 2012 at 11:56 am
    I think you answered your own question. They want to make money.
    0 1
  • Ananymous
    Ananymous
    Joined: Apr 2011
    Posted: Nov 21st, 2012 at 8:50 am
    Nintendo needs to make that money, $350 for the premium Wii U honestly seems cheaper than we will see the Nextbox and PS4 top end options and it will sell for the holidays I'm sure. I mean the PS Vita alone minus sales is $249 for the WiFi version and that's a portable so what exactly makes the Wii U pricey other than consumer *****ing?
    2 2
  • cyberjim2000
    cyberjim2000
    Joined: Feb 2010
    Posted: Nov 21st, 2012 at 10:39 am
    $350 for a premium Wii U isn't as bad as $600 for a PS3.
    0 1
  • ShadeTail
    ShadeTail
    Joined: Nov 2006
    Posted: Nov 21st, 2012 at 1:57 pm
    Agreed. And anyway, $300 to $350 is a perfectly fair price for a new system.
    0 0
  • xDUMPWEEDx
    xDUMPWEEDx
    Joined: Jan 2012
    Posted: Nov 21st, 2012 at 1:11 pm
    $350 isn't bad at all for a new console. People are seemingly forgetting to take inflation into account. $350 today isn't close to what it was 15 years ago. The Sega Saturn launched at $399...and that was 17 years ago. Even the PS1 was $299 17 years ago. Today those systems would be about $550-700 with inflation. Chill out everyone!
    1 2
  • sli
    sli
    Joined: Mar 2012
    Posted: Nov 21st, 2012 at 4:43 pm
    Yes, purchasing power.
    0 0
  • BigTruckSeries
    BigTruckSeries
    Joined: May 2006
    Posted: Nov 22nd, 2012 at 12:13 pm
    $350 is a hell of a lot more than Parents should be spending on these worthless kids. They haven't done ANYTHING to deserve stuff like this.

    I say, keep that $350 in your pocket and buy em LEGOS for Christmas. Or have em get a damn job. I'd NEVER buy a kid smartphones and stuff. When I was a kid the only people with "beepers" were either doctors or drug dealers. Now they got 7th graders walking around with Galaxy S3.
    0 0
  • BigTruckSeries
    BigTruckSeries
    Joined: May 2006
    Posted: Nov 22nd, 2012 at 12:10 pm
    I still have no idea what Wii U is.
    0 0
  • Ananymous
    Ananymous
    Joined: Apr 2011
    Posted: Nov 23rd, 2012 at 12:44 pm
    Nintendo's New HD Wii with a stronger core
    0 0
  • Baseketcase
    Baseketcase
    Joined: Aug 2010
    Posted: Nov 24th, 2012 at 8:12 am
    Considering the PS2 and PS3 both launched at over at least $500 and with the X box launches being no better, $350 doesn't seem like a horrible hit to the wallet.
    0 0

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