Nintendo: Wii U 'will be Sold Below Cost,' 5.5M Wii U to be Shipped - News
by William D'Angelo , posted on 25 October 2012 / 14,513 Views
Nintendo president Satoru Iwata during Nintendo's semi-annual financial results briefing has announced the company will be selling the Wii U at a loss during its launch. This news comes only a few months after Nintendo began selling the 3DS at a profit.
"The Wii U hardware will have a negative impact on Nintendo's profits early after the launch because rather than determining a price based on its manufacturing cost, we selected one that consumers would consider to be reasonable," said Iwata. "In this first half of the term before the launch of the Wii U, we were not able to make a profit on software for the system while we had to book a loss on the hardware, which is currently in production and will be sold below cost."
"We will make best efforts to retrieve "Nintendo-like" profits by: boosting sales of the Nintendo 3DS system as a sound successor to Nintendo DS both in Japan and overseas during the year-end sales season," Iwata added,"launching the Wii U system successfully in each part of the world in the year-end and maintaining the sales momentum next year, and, transforming our business structure in line with the times, including the expansion of our digital business to increase our business efficiency and profitability."
Iwata also revealed that Nintendo is aiming to ship 5.5 million Wii U consoles and 24 million units of Wii U software. To compare the 5.84 million units of the Wii and 28.84 million units of Wii software were shipped during its launch.
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This does mean that if it doesn't generate the mad sales from the hype it's been building that Nintendo would hope, they aren't going to be able to turn around and slash the price of it like they did the 3ds.
Software sales of Nintendo Land, NSMBU, and 3rd party games, along with the holiday 3DS boost, ought to ease the pain.
Given Nintendo; they will not lose too much money so I'm not too worried about it. Plus their profits from their Wii, DS and 3DS will make up for some of that loss.
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It will sell like hot cakes, so Ninty will be d0m3d! :-P
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