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Wii U profitable with just one game sale, Nintendo reveals

Wii U profitable with just one game sale, Nintendo reveals

by Bradley DeLorenzoNovember 21, 2012

Nintendo will make money on your Wii U purchase as soon as a you buy your first game, the company has revealed.

“As soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive”.

– Nintendo of America boss Reggie Fils-Aime

Nintendo usually prices its consoles to make a profit on the hardware itself. The Wii U has bucked that trend and will be sold at a loss, although some informed estimates suggest not by much.

Snippet of the Reggie interview:

Q: What are your expectations for the Wii U’s launch?
A: We’ve made more hardware available to retailers than we did for the original launch of Wii. We are also prepared to do faster replenishment into retail than we did for the original Wii. We see that the amounts that retailers have made available for pre-sale have largely been sold, which is very gratifying.
So we are fortunate that there is strong demand out in the marketplace, and our goal is to meet as much of that demand as possible.

In terms of our expectations, all we’ve published is that we expect in this current fiscal year to sell 5.5 million units of hardware.

Q: Part of what made the Wii so successful was that it attracted consumers who didn’t think of themselves as gamers or who had stopped being gamers long before. Many of those consumers seem to have moved on to other things, whether to Facebook games or to mobile games. Do you expect to lure those same people back to the Wii U?
A: Our target is consumers 5 to 95. We pride ourselves on being a mass market games company. We absolutely want more active players. We want more casual players. And we think we’ve got the offering to attract a very wide audience.

Consumers are looking for new and compelling experiences. And we believe we’re delivering a vast array of new and compelling experiences with Wii U.

[Mercury News]

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Bradley DeLorenzo

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