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 Under News | Follow This Author @KartikMdgl

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.

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