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."