Nintendo: Each Wii U to Profit with One Game Sold

by William D'Angelo, posted on 21 November 2012 / 9,325 Views

Nintendo of America boss Reggie Fils-aime in an interview with Mercury News has said that the Wii U might be selling at a loss, but it is not very big. If a Wii U owner purchases just one game Nintendo will make its money back.

"The business model doesn't change dramatically, in that as soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive," Fills-Aime said.

"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," he added. "And if we're able to do that, then we will create significant profit for the company."

Reggie was asked about his expectations for the Wii U launch. There is more hardware available at launch compared to the Wii and the company is ready this time to replenish stock much faster.

"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," he said.

When asked about how underpowered the Wii is compared to the HD Twins Reggi said, "As we sit here today, whether you look at this from a U.S. perspective or you look at it from a global perspective, the sell-through rate of Wii was faster than our competition, and the total install base for Wii is much more than our two competitors."

"We began working on Wii U a number of years ago, and certainly the innovation that we're bringing is significant. And it's a complex endeavor to bring this type of innovation into the marketplace. We needed to do it the right way. We needed to make sure that it would be a strong consumer experience."


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7 Comments

swii26 (on 22 November 2012)

They already profited from me


cusman (on 23 November 2012)

I got 14 games for my Wii U and tried them all 1+ hour already and so far only regret two of those purchases (Rabbids Land and Tekken Tag Tournament 2) which I will sell back shortly. The machine itself and all the other games I got I really like.

Especially good are New Super Mario Bros. U, Ninja Gaiden 3 - Razor's Edge, Assassin's Creed 3, Darksiders 2, ZombiU, Sonic and All-Stars Racing Transformed, Call of Duty - Black Ops 2, Nintendo Land, Batman Arkham City, Nano Assault Neo, and Little Inferno.


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phenom08 (on 21 November 2012)

Best home console in the world! They deserve every penny.


VGKing (on 21 November 2012)

""The business model doesn't change dramatically, in that as soon as we get the consumer to buy one piece of software, then that entire transaction becomes profit positive," Fills-Aime said." Not break even, profitable. There's a difference, William.


fedfed (on 21 November 2012)

I thought Reggie said that with one software purchased together with a Wii U they will make a profit.... not breaking even.


kupomogli (on 21 November 2012)

With as little as the company gets from each game that's sold, this is telling you something. Nintendo announces that they're losing money for each console, but what. $10-20 each console? This proves that Nintendo cares less about its fans and more about its own financial situation that they make such a weak console and then don't even price it fairly for consumers. By weak, it's only as powerful or even marginally more powerful as the PS3 or 360. I guess in a way it's good for Sony and Microsoft, because the Wii U isn't as cheap or cheap as the PS3 and 360, so they have a chance on selling if people are looking at the price tag alone and don't own any of the systems.


baez1301 (on 22 November 2012)

We can talk all day about how all company's in the world really only care about money or how company's like Microsoft do worse stuff like the deal where you get a Xbox 360 for 100$, but they making a profit of 344$ under 2 years contract(is not like Xbox live is a rip off right?). but lets just go straight to the point. Hardware and business management is a different section on the Nintendo Company that focus on the profitability of the company, we know Nintendo wants to take our money like any other company in the planet would, but here another section, is call the Software development section, which is the one that takes care of creating the games for us, guess which section gives a fuck about us on the company? guess which section develop the content we love and is the reason we keep coming back? is childish and immature not to expect a company to not act like a company, or for it to no archive its ultimate goal of creating profit by the end of the day. So stop acting like a kid because a company you may dislike don't fit your moral views of how a company should obtain profit from a product they sell.


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baez1301 (on 22 November 2012)

We can talk all day about how all company's in the world really only care about money or how company's like Microsoft do worse stuff like the deal where you get a Xbox 360 for 100$, but they making a profit of 344$ under 2 years contract(is not like Xbox live is a rip off right?). but lets just go straight to the point. Hardware and business management is a different section on the Nintendo Company that focus on the profitability of the company, we know Nintendo wants to take our money like any other company in the planet would, but here another section, is call the Software development section, which is the one that takes care of creating the games for us, guess which section gives a fuck about us on the company? guess which section develop the content we love and is the reason we keep coming back? is childish and immature not to expect a company to not act like a company, or for it to no archive its ultimate goal of creating profit by the end of the day. So stop acting like a kid because a company you may dislike don't fit your moral views of how a company should obtain profit from a product they sell.


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glimmer_of_hope (on 23 November 2012)

You just dont realise do you? The ONLY way Nintendo makes money is through video games. Microsoft and Sony both make money other ways. This is way Nintendo must do everything they can in order not to lose money. What are they supposed to do? Make a super powerful console and lose $300 per??? How are they going to make money? They have no other sectors to earn that money back! Just go bankrupt in 1 year...ya you really thought this one out eh?


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glimmer_of_hope (on 23 November 2012)

You just dont realise do you? The ONLY way Nintendo makes money is through video games. Microsoft and Sony both make money other ways. This is way Nintendo must do everything they can in order not to lose money. What are they supposed to do? Make a super powerful console and lose $300 per??? How are they going to make money? They have no other sectors to earn that money back! Just go bankrupt in 1 year...ya you really thought this one out eh?


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Kai Master (on 26 November 2012)

Nintendo could sell a 800$ console (like PS3) at 600$ on launch date and lose a lot of money and be in the red like Sony is but they didn't want to do this, is that stealing the consumers ? Not at all. HDs were not this gen, they were already next-gen priced at now-gen. As unbelievable as it seems, Sony never profited from PlayStations on the whole, the PS brand is in the red since 1994 !


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Comments below voting threshold

DitchPlaya (on 21 November 2012)

LOL nice answer to how powerful the WiiU. Seriously people still love this guy, whats he done since making his big speech back in 2004, oh wait its Nintendo fans we are dealing with...


sethnintendo (on 21 November 2012)

We don't love him. We just love his googly eyed picture. I am just ashamed Google images doesn't have his picture as number 1 for googly eyed picture results.


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aimancooper (on 21 November 2012)

I hope it turns into a flop!


sethnintendo (on 21 November 2012)

You should have used the word fad.


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