Nintendo – Wii U profitable once consumer buys a game

"The business model is still to drive the install base of hardware."

Posted By | On 21st, Nov. 2012

It just takes a single game purchase for Wii U to become profitable according to Nintendo of America’s Reggie Fils-Aime. It’s always been the company’s philosophy to make money on the hardware and not to take a big loss on their product.

The Wii U’s main USP is the gamepad, and considering the RAM and CPU are both slower than current gen HD system, it’s clear that Nintendo has tried to save money somewhere and hopefully that doesn’t affect them with third-parties, the ones they are desperately trying to court with the system.

“As soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive,” he said to Mercury News . (Via VG247).

“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.”

So it seems that they are making at least $20 loss on each Wii U, and that will probably show up on their financial statement next year.

Tell us what you think in the comments section below.


Tagged With: ,

Amazing Articles You Might Want To Check Out!

Share Your Thoughts Below  (Always follow our comments policy!)



Keep On Reading!

Hades 2 Technical Test Ends on April 29th

Hades 2 Technical Test Ends on April 29th

Early access for the hack-and-slash rogue-lite will go live "relatively soon" for PC via Steam and the Epic Ga...

Fallout 4 Next-Gen Update Targets 4K/60 FPS in All Modes on Xbox Series X, Says Bethesda

Fallout 4 Next-Gen Update Targets 4K/60 FPS in All Modes on Xbox Series X, Says Bethesda

Bethesda notes that Performance Mode is "more aggressive in lowering settings" to maintain the 4K/60 FPS targe...

Fallout 5 – Microsoft Reportedly “Formulating Plans” to Launch it “Sooner Rather Than Later”

Fallout 5 – Microsoft Reportedly “Formulating Plans” to Launch it “Sooner Rather Than Later”

Following the success of Amazon's TV show, Microsoft is reportedly looking to fast-track development on the ne...

Manor Lords Has Already Sold Over 1 Million Units

Manor Lords Has Already Sold Over 1 Million Units

The game also hit a peak Steam concurrent player count of over 170,000, which is the highest ever for a city b...

Destiny 2 Will Remove Legacy Gear Power Limits in The Final Shape

Destiny 2 Will Remove Legacy Gear Power Limits in The Final Shape

There's no "recovery mechanism" for those who deleted their Legacy items, but Bungie will reintroduce sources ...

Destiny 2: The Final Shape Will Let You Boost Friends to Your Power Level

Destiny 2: The Final Shape Will Let You Boost Friends to Your Power Level

Players with the highest Power become the Power Leader and can thus raise teammates to five levels below their...