The Wii U Is Indeed Profitable
The Wii U is profitable after one consumer buys a single game each.
A few weeks before the North American launch of the Wii U, Nintendo revealed that the Wii U would be sold at a loss with the system not being profitable from the get go. President of Nintendo of America Reggie Fils-Aime revealed in an interview with Mercury News that whilst this is still the case, the Wii U can actually be profitable with the sale of one game per console.
“As soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive,” said Fils-Aime.
It looks like that whilst the Wii U is Nintendo’s first non-profitable console, the loss seems to be at a small margin.
“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.”
It would be a fair guess to be that Nintendo’s financial troubles as of late may be starting to get better with better 3DS sales and the Wii U since it’s tradition to buy a game with a new console.
George Sinclair is an editor for Analog Addiction, the home of the latest news, reviews and previews. You can find George on Twitter and his blog on IGN. Be sure to follow the OFFICIAL Analog Addiction Twitter as well!