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Iwata: Wii U to be sold at a loss



Nintendo president Satoru Iwata has said that the Wii U will be sold at a loss when it launches next month. 

Speaking to investors, Iwata said that revenues would be constrained by the rising value of the yen and production costs for the Wii U, adding that the machine has been priced at a cost " that consumers would consider to be reasonable."

"Although we expect our financial performance to be revitalized, under these circumstances, unfortunately we cannot say that we will achieve 'Nintendo-like' profits within this fiscal year."

In addition to the above, Iwata also remarked that the company was aiming to ship 5.5 million consoles this fiscal year (up to March 2013), and 24 million units of Wii U software.

Until recently Nintendo was also selling the 3DS at below its manufacturing cost, although the handheld is now profitable for the company. Will Wii U eventually be in the same position and will it ship as many units are Nintendo expects? Well, that just depends on if you're willing to buy it or now.

Edited On 25 Oct, 2012

Comments
( 13 )
Wey1's avatar
Wey1 4 years ago
no surprise really. they'll turn a profit eventually.
PrometheusFan's avatar
PrometheusFan 4 years ago
Unbelievable. Sony and MS make money off of every PS3 and 360 sold, but a more expensive console that has all the appearances of offering no real improvements on those two has to be sold at a loss? That controller must cost a fortune to manufacture, which presumably is why they won't sell them seperately as they'd probably be charging a small fortune per pad. Selling at a loss is really a pretty shocking change of strategy for Nintendo to be making though. Just means they'll be hurt all the more if the Wii U flops.
Robichoico's avatar
They were selling the 3DS at a loss too once the price drop was done. IIRC the PS3 was at a loss when first started. Vita is supposed to be at a loss which is why they won't reduce that. I'm sure Mario alone will make things profitable for them. We all know it's software that sells the consoles too.
Robichoico 4 years ago
Bindiana's avatar
Most consoles sell at a loss to begin with until they find the best way to make and the best place and price to buy components. Most companies make there money on accessories like crontrollers and memory cards.
Bindiana 4 years ago
Skiba's avatar
his point is the wiiu is no nextgen machine so how can it be selling at a loss which is why he mentions the controller.
Skiba 4 years ago
PrometheusFan's avatar
I'm well aware Sony and MS hardware have always launched selling at a loss, but the Wii U marks the first time Nintendo has adopted this strategy, which is a pretty big move for them, if not so surprising after the disastrous 3DS launch. The curious part imo though is that Nintendo's long standing reasoning for releasing relatively low powered hardware was so they could sell at a profit from day one. Well, here they are releasing (What has all the appearances of) low powered hardware once again, but this time it's selling at a loss? It'll be interesting to hear their reasoning on this occasion.
PrometheusFan 4 years ago
Dead's avatar
You do make me laugh kevin, everything Nintendo do you describe as disastrous, but when Sony do the exact same thing it's all good.
Dead 4 years ago
PrometheusFan's avatar
Care to provide examples of this?
PrometheusFan 4 years ago
PrometheusFan's avatar
No wait, actually don't bother. I'm not going to engage in pettiness such as this with you.
PrometheusFan 4 years ago
Dead's avatar
Well we could compare the 3DS and Vita's first year's, both have been pretty comparable in terms of hardware sales and available software, but you call the 3DS's disastrous, but won't hear a bad word about the Vita. I should have known you wouldn't want to engage in any sort of discussion about it though, as facts are not your strong point :)
Dead 4 years ago
PrometheusFan's avatar
What facts have I posted that have been incorrect?
PrometheusFan 4 years ago
Dead's avatar
I really can't be bothered to go back and list them all, specially not for someone so biased as to think their own opinions are facts.
Dead 4 years ago
Dead's avatar
Dead 4 years ago
No big deal, the 360 and PS3 both sold at a loss at launch and it didn't do them any harm, besides Nintendo must have an absolute mountain of cash from the Wii.

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